Kellogg's - Case study: Fewer transport miles
During the 3 years to 2008, Kellogg's has reduced its CO2 emissions from
transport by just over 11% per tonne of food. A significant proportion of this
reduction is due to its collaboration with Kimberly Clark, manufacturer of
brands
including Kleenex and Andrex.
To date, the project is generating an annual reduction in miles travelled of
270,000 and a corresponding drop in diesel consumption of over 30,000 gallons
per
year. Additionally, the combined environmental benefit equates to annual
savings
of 380 tonnes CO2 – all as a direct result of the collaboration.
Once initial ideas and requirements were on the table, the haulier, TDG,
utilised its hi-cube transport platform and warehousing network to find
practical ways
to consolidate Kimberly-Clark and Kellogg's orders and delivery schedules
without impacting on customer service expectations across both companies'
individual
bases.
The collaboration, having been tried and tested in the South of England, is now
being rolled out across the rest of the country.
“Everything really stacks up,” comments Colin Ridler, Supply Chain Director of
Kellogg's. “TDG's 2008 proposal enabled us to consolidate our stock holdings
under one roof and accommodate and extension of our already successful venture
with
KC. The whole package delivers meaningful savings for us, as well as the
environmental and efficiency benefits achieved. We are now discussing
additional
opportunities and looking for new ways to extend the collaboration agenda even
further.”
Sharing services makes sound commercial sense with both manufacturers enjoying a
7% reduction in transport costs. However, perhaps most compelling is the
environmental story – with empty trucks off the road, reduced truck miles,
lower CO2 emissions and simplified ordering for retailers, it really is a win-win.
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