Success factor for retail

Transcription

1 GREEN LOGISTICS Success factor for retail Logistics comprise a core competence for retail. But ensuring that the right goods are always available when and where they are needed comes at a considerable cost. Sustainable warehousing and supply concepts not only serve to protect the climate and the environment; they also make economic sense given rising energy prices and stricter environmental regulations. Many of these concepts still sound quite futuristic. Goods deliveries: not too many and not too few The distance it takes to go to the moon and back 25 times is about how much ground the METRO LOGISTICS vehicle fleet covers every year. The lorries of the Group s in-house logistics company log 19 million kilometres annually to supply the German stores of our sales divisions METRO Cash & Carry, Real and C + C Schaper with fresh goods from the central warehouse every day. In addition, the Düsseldorf-based company handles all procurementrelated logistics in Germany, Austria, Switzerland and the Benelux countries. What does this mean in concrete figures? Under the direction of METRO LOGISTICS, every year various logistics partners deliver some additional 8.4 million goods shipments from 4,600 suppliers to stores using optimised routes. These figures demonstrate just how important logistics are as a competitive and cost factor in retail. In order to generate attractive sales, retail companies must always ensure the kind of freshness and range customers are looking for in products, in addition to offering the latest products as well. At the same time, there are certain limits to available supply inventories, particularly when it comes to perishable goods or seasonal products, not to mention the limited storage at stores, particularly in expensive city-centre locations. However, delivery cycles cannot simply be increased at will. Rising energy prices and stricter climate protection and environmental regulations now require efficient and sustainable logistics concepts in the retail sector, which means transports used to capacity and fewer empty runs. 1

2 METRO LOGISTICS lorries log more than 19 million kilometres annually. Green star for climate protection advocates Across the globe, the transport of goods uses up a great deal of energy and negatively impacts the environment. According to the German Federal Environment Agency, the movement of goods and persons accounts for around one-fifth of all CO 2 emissions in Germany. That equates to some 156 million tonnes of CO 2 per year more than the amount emitted in the industrial, retail and service sectors combined. Leading retail, industrial and logistics companies aim to improve climate protection with an eye to logistics. To this end, the brewing group AB InBev, Henkel, Kaufland, Lekkerland, Lidl, Mars, Unilever and others in Germany have joined the Lean and Green non-profit initiative. The programme s aim? To reduce greenhouse emissions incurred by the logistics processes of the participating companies by 20 per cent within the next five years, according to Jörg Pretzel, CEO of GS1 Germany, in statements made at the German-wide rollout of Lean and Green in October GS1 Germany provides support to companies in developing and introducing open, cross-sector standards, such as for barcodes and RFID. In future, the Cologne-based service provider will also award the Lean and Green Star to companies for sustainable logistics. Just over one-fifth of harmful greenhouse gases in Germany come from transport. Source: German Federal Environment Agency (2013): National trend tables for the reporting of atmospheric emissions , As at: December

3 A plan for reducing carbon footprints In future, the Lean and Green Star certificate will allow companies to publicly highlight their logistics efforts on behalf of the environment and, in turn, to score points with their customers. In addition, it will save companies money because fewer emissions usually mean less energy consumption. Logistics account for 9 to 10 per cent of all energy expenses in the retail sector. In order to receive the certificate, companies must first calculate their carbon footprint and submit that along with a concrete emissions reduction plan to GS1 Germany. They then have five years to reduce their logistics-related CO 2 emissions by 20 per cent. Companies can decide for themselves how they wish to achieve this target. Anything goes as long as it is climate friendly ranging from economic, fuel-efficient driving through to entirely new warehousing and transport concepts. Even without the new certificate, the METRO GROUP has been keeping a positive ecological balance since 1996 thanks to its multiple-award-winning concept for procurement logistics. METRO LOGISTICS central coordination of the flow of goods from the large number of producers feeding into the intricate network of stores has resulted in a significant reduction of the number of kilometres driven per transported tonne, lorries used nearly to capacity, the minimisation of empty runs and major reductions in downtime. Jörg Pretzel, CEO of GS1 Germany (right), with the winners of the Lean and Green Award. Source: see No empty lorries According to a recent study by the European Commission, lorries that make empty runs drive up costs significantly and additionally have a negative environmental impact. The study found that around one out of every five lorries on Europe s roads is not carrying cargo. Through collaborative efforts, such as freight and cargo exchanges, and with the help of sophisticated route planning enabled by modern IT, many companies aim to boost the use of fleet capacities in the future. However, it seems rather doubtful at the moment whether the mega trucks known as Gigaliners will make it onto German streets. These super lorries, which can be up to metres long and weigh 44 tonnes, could enable the retail sector and logistics providers to reduce the number of transport trips. With fewer vehicles, overall petrol consumption and, in 3

4 turn, carbon emissions would be cut considerably. However, critics of the mega trucks cite safety concerns and the road damage caused by these heavyweights, which have been permitted for field testing in Germany since The German government aims to make a decision about granting general authorisation for the use of mega trucks by the end of The oversized lorries are already permitted on the road in Denmark and the Netherlands. Mega trucks weigh up to 44 tonnes. Alternative drive solutions Instead of going with oversized lorries, other companies have opted for alternative fuels, such as Bavarian food producer Höhenrainer, which converted its entire fleet a number of years ago to run solely on CO 2 -neutral rapeseed oil. As part of the ELMO (electromobile urban commercial transport), the discounter TEDi is currently testing its ability to supply stores in Dortmund and Bochum with electric lorries. The 12-tonne vehicles are operated primarily with eco-friendly electricity. The environment is not the only one to benefit from these clean and fuel-efficient transport vehicles; it also makes increasing economic sense for companies to convert their fleets. From 1993 to 2013, the average price per litre of diesel fuel rose by more than 250 per cent, from EUR to EUR In contrast, the motto at Bodan is more CO 2 for climate-neutral logistics. The natural food wholesaler put the second CryoTech lorry trailer for refrigerated transports into operation. The refrigerant for this trailer is made from excess CO 2 from industrial processes which has been compressed under great pressure at -30 C and liquefied. This system eliminates the need for diesel-based cooling units. Representatives from the political, corporate and scientific spheres gathered for the launch of the ELMO (electromobile urban commercial transport) project. 4

5 An underground for goods? Dietrich Stein, who is managing director of CargoCap GmbH and a mechanical engineering professor at Ruhr University Bochum, has an idea that sounds as if it has been ripped from the pages of a sci-fi novel. He wants to relocate freight traffic in city centres to the underground. According to his plan, in the future retail stores located in large cities would be supplied by a network of pipes used to transport unmanned capsules. These pipes and capsules would replace lorries. The battery-powered CargoCaps are designed to reach a constant 36 kph and to be able to hold two Euro-pallets. The system would enable the delivery of ordered goods to stores at any time of day or night without traffic jams, noise pollution or exhaust fumes. So far, the CargoCaps have only been whizzing down a 125-metre model that researchers at Ruhr University developed together with partners from the industrial sector on the grounds of the RWE power plant in Bochum. But in Stein s estimation, the concept is feasible from an economic, technical and legal point of view. In metropolitan areas, such as the Ruhr district, or in other megalopolises, the transport infrastructure that has traditionally been erected no longer meets the increasing and changing needs of transport services, he said. This is why innovative solutions are urgently needed in order for retailers to be able to supply customers in a reliable and environmentally conscious manner as they look ahead to the future. Digital rendering of CargoCaps, a model project at Ruhr University Bochum. Copyright: METRO AG URL: 28th May