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Sustainable distribution

12th July 2007, Page 22
12th July 2007
Page 22
Page 22, 12th July 2007 — Sustainable distribution
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Which of the following most accurately describes the problem?

To reduce the effects of the supply chain on the environment, is a radical change of direction

needed? Louise Cole finds out.

Operators may "think the unthinkable" in their quest for sustainable distribution — at least according to a recent survey on fleet efficiency for the Department for Transport by Scala Consultants, John Perry, MD of the Scala Group, defines 'the unthinkable' as an increase in short-term costs (which may be offset in the longer term by brand benefits); collaboration with competitors; or changing consumer behaviour to reducedemandforenvironmentally damaging products".

In the case of hauliers, many of these tough decisions will be taken by their customers, but invariably transport providers will be expected to act on their clients' expectations. Legislation is gradually devolving responsibility for carbon output down the supply chain, starting with power stations and now progressing to mediumsized companies with significant power usage.

Couple that with heightened public awareness of green issues, and operators are going to come under increasing pressure.

So is the unthinkable necessary? Will you have to absorb higher costs to fund the green evolution of transport?

Gary Flannagan. logistics director at Asda, thinks not Asda has run a long-term campaign as a `sustainability champion' forDefra (the Department for Environment, Food and Rural Affairs), looking at how it can minimise the effects of the supply chain on the environment.

"We need to wed efficiency to sustainability," Flannagan told the Chartered Institute of Logistics and Transport conference in Birmingham last week. "Supply chains in Europe have 50% empty running built into their design and cost. There are enough empty miles to soak up the extra freight required by GDP growth for the next 10 years.

Defra calculates the external costs of food transport at £1.9bn a year; Asda has committed to reducingits part of that by 20% with "both fewer miles and friendlier miles", says Flannagan.

Art of the possible The supermarket chain has focused on the 'big ticket items' —those initiatives that produce the biggest savings." It's also about the art of the possible,"saysFlannagan. -Look at what can be done [rather than focusing on the negative]."

Asda has focused on 'sustainable' buildings, using local and recyclable materials and incorporating rainwater collection, natural light, waste heat harvesting and new refrigerationtechniques.Rainwater use now outstrips mains water by 2:1 at the Doncaster site.

Asda uses some of its em pty miles to backload returns to depots. It is aiming for cost neutrality, although many efficiency moves can save money. "But moving from road to rail on our Scottish routes has been a financial challenge:. he says The store has reorganised its primary RDCs to allow local sourcing wherever possible and minimise journey lengths. Concentrating on cube, it has switched to double-deck trailers. Fifteen curtain-sided trailers take empty pallets on their return loads.

These changes are planned to save 1.9 million miles, and Asda intends to double the number of double-deckers in its fleet by 2012.

It is also trialling its first doubledeck reefer.

Of the 50% of truck miles which are run empty,Asda believes 28% are not viable for return loads. That still leaves 3,000 empty journey legs to fill each week, which has led the company to look at collaboration. It is investigating increasing supplier backloads, and working with others to optimise the efficiency of hauling to stores. It estimates that eliminating this empty running will save nine million miles a year, while factory gate collection will save a further six million supplier miles.

"We've eliminated inter-depot trunking, got rid of the North and South distribution centres and emphasised local sourcing for stores,"saysFlannagan.

From road to rail Off-road, Asda is the largest user of rail among UK retailers, particularly for clothing and nonsensitive grocery lines,and it wants to shift a further three million miles worth of road transport to rail by 2008.

his also moving shipped goods to Teesport, saving two million miles on deep-sea imports.

Flannagan believes in-cab technology has a big part to play. Asda has conducted an "impressive" trial with Opticruise automated transmission; the firm also plans tofit Isotrak management software. Its vehicles are replaced on a four-year rolling basis, so by 2010 the whole fleet will be Euro-4 or Euro-5.

"On the face of it, sustainability can put unreasonable demands on the supply chain and transport," says Flannagan."But it can be done, to everyone's benefit." •


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