During the 2017/2018 trading year, our supply chain teams handled over 115 million items from 47 countries, using a combination of road, sea and air freight. These items are delivered to our global network of distribution centres DCs. We have three facilities within the UK, employing 1,500 people, and further distribution hubs in Singapore and the USA. Goods are received, sorted and redirected to stores and to our customers across 120 countries.
We work with forwarding partners to import products from international suppliers to our UK-based DCs, and with three different distribution operators to deliver online orders to our customers within the UK and internationally. Meanwhile, Arcadia Group’s own fleet of vehicles deliver stock from our DCs to and from stores across the UK, which is the only aspect of our logistics operations that we control directly.
Gross CO2 emissions arising from Arcadia-owned distribution vehicles reduced by 7% in the most recent financial year.
Arcadia Group Managed Fleet
Gross CO2 emissions arising from Arcadia-owned distribution vehicles reduced by 7% in the most recent trading year.
We drive improvement by focusing on increasing the efficiency of our operations. For example, improvements in the way we plan and schedule our journeys has allowed us to increase average vehicle loading capacity to 90% (95% on some routes). This has helped us to reduce total mileage by 7% and fuel consumption by 4% in comparison to the previous year.
In order to maximise fuel efficiency, we always aim to schedule overnight deliveries when roads are quieter. In addition, as part of DHL’s shared user network, we combine deliveries with other retailers in our remote northern Scotland locations to save on transport miles and fuel.
Beyond scheduling, we provide training to encourage our core team of 60 drivers to operate vehicles in a fuel-efficient and safety-conscious driving style. Driver’s undergo an assessment at least every two years to ensure that these skills are being put into practice.
In 2019, we will upgrade our fleet to ensure that we continue to meet Euro 6 emissions standards. New vehicles will be more fuel efficient than ever before, and will provide the opportunity to phase in telemetric analysis of driver behaviour to encourage more efficient driving styles.
Partner-managed Supply Network
We have continued to work with our forwarding partners to reduce the distance that our products travel (particularly in Europe) by increasing capacity at our international DCs and by working with our forwarding partners to find more efficient routes to market. Through more efficient planning, we reduced the weight of goods shipped via air-freight by 17% in the latest trading year.
We also work closely with our shipping partners to understand our environmental impact. In 2019 we plan to create a comprehensive baseline of carbon emissions associated with our logistics operations. In partnership with our forwarders, this exercise will help us to identify where greater efficiencies can be made.