Effective packaging and transportation

We convert more customers into fans by responding to their delivery needs as quickly as possible. To accomplish this, we rely on our transportation partners to deliver our products from production facilities to our RFHs and then to our stores.

 

Our inbound transportation is done by ocean and air, while outbound transportation is mainly done with road travel (a detailed overview can be found in our 2019 Annual Report). Our transportation policy and performance are tied to product demand. We recognize the environmental impact our work has, and we work to reduce our negative environmental impact in line with the global climate change agenda.

 

One of the ways to mitigate our transportation-related environmental pressure is by optimizing product packaging. Therefore in 2019 we rolled out some initiatives to lower our transportation-related carbon emissions:

 

  • Reduced packaging material by optimizing box sizes: Optimizing box sizes reduced an estimated 20% of packaging material used (carton). This led to an estimated 5% to 20% reduction in transported weight, on both inbound ocean and air, as well as outbound truck transport.
  • Consolidated volume to optimize transport : 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.