Efficient transportation process
One way we convert more customers into loyal fans is by exciting them with the most fast and flexible delivery lead times. To accomplish this, we rely on our transportation partners to deliver products from production facilities to our manufacturing sites and then to our retail stores by road, air and across oceans. We recognize the environmental impact this worldwide transportation process creates and work hard to reduce our negative environmental impact in line with the global climate change agenda.
The product journey from our suppliers to our customers is covered by multiple segments, which can be broadly described as:
- Inbound transportation: from production facilities to our cross-docks
- Outbound transportation: from our cross-docks to our manufacturing sites and retail brands
Inbound transportation is done by ocean and air, while outbound transportation is mainly done by road travel. Our transportation policy and performance are tied to product demand. And as our customers want a wide variety of products delivered as quickly as possible, there has been an increase of inbound air shipments.
Our goal is to keep balancing customer demand while reducing the environmental impact of our transportation modes.
Improved packaging reduces environmental impact
While air transportation is CO2-intensive, it is an essential element of our transportation logistics that guarantees speedy delivery to our customers. That's why we implemented emissions-reducing practices since 2019 into our logistics with the following projects that have:
- Reduced packaging material by optimizing box sizes
- Result: Used fewer cartons and reduced empty space/volume during transportation.
- Example: Optimizing box sizes reduced an estimated 20% of packaging material used (carton). This reduced an estimated 5% to 20% in transported weight on inbound ocean and air, as well as outbound truck transport.
- Consolidated volume to optimize transport
- Result: Fuller container loads shipped using ocean transport and more efficient truck loads for road transport.
- Example: We introduced consolidation points in Asia, which optimized inbound flow of products by air and ocean. This will lead to an estimated yearly savings of 6% on CO2 emissions.