We are constantly looking at ways of moving products around more cost-effectively by travelling fewer miles. One of the most significant areas of progress is that we have been able to merge the Arcadia and BHS transport networks.
Most of our vehicles now carry both Arcadia brands and BHS stock, greatly reducing the number of miles covered. In 2010-11 our transport fleet delivered to 448 extra locations (due to new stores as well as ‘inserts’ of Arcadia brands into BHS) yet we ran approximately half a million fewer miles by consolidating routes.
Overall in 2010-11 we reduced our carbon emissions by 5.4%. This is our fourth reported year of reduced emissions.
| 2007-08 | 2008-09 | 2009-10 | 2010-11 |
|---|---|---|---|
| 7% | 10% | 5% | 5% |
Carbon emission reductions through transport
Food deliveries are also part of our business, via the BHS in-store cafes. Rather than send vehicles carrying just food, we use a purpose built locking system for the food containers to transport clothing and food on the same vehicles.
Further consolidation of store deliveries will follow. We are also keen to introduce more double-decker lorries to improve vehicle usage when moving stock long distances between depots such as to Ireland or Scotland.
We intend to replace our current transport fleet with more environmentally friendly options. This will be phased in over a number of years. We will prioritise fuel efficient vehicles using technology such as Telematics to improve performance and reduce emissions.
From January to August 2011 there was a 50% reduction in air freight across Arcadia against the same period last year. We appreciate the increased costs of using air freight and our brands also avoid it where possible due to the environmental impacts.
Again, with Arcadia and BHS using the same ocean forwarders, we now consolidate our deliveries and our main focus is on optimising container loads.
Following a difficult 2009 for the ocean freight industry when forwarders made record losses, our partners are introducing developments such as:
- ‘slow steaming’, which means ships are slowed to around 15 knots to burn less fuel; and
- new 'environmentally friendly' ships with improved efficiencies such as fuel efficient propulsion systems.
Our ocean forwarding partners continue their commitment to the environment. In 2011 APL Logistics began using electricity from the shore in selected ships whilst at berth, rather than using ship engines that release exhaust. They also became the first carrier to switch vessels to cleaner-burning low-sulphur fuel at the Port of Singapore and in June 2011 they won an Environment Protection Award in Hong Kong.
NYK/Yusen has received a number of environmental awards, such as the Chartered Institute of Logistics and Transport UK’s Supply Chain Excellence 2010 award, Winner of the Green Organisation 2011 Green Hero Award and finalist in the Motor Transport Environmental Best Practice 2011 award.
In 2010, DHL was listed in the Dow Jones Sustainability World and Europe indexes, the FTSE4Good and the Carbon Disclosure Project’s Leadership Index.
