TRANSPORT & LOGISTICS

Wherever possible, we seek to minimise the impacts of transporting products – especially as our global reach as a retailer continues to grow.

For the ninth consecutive year we have achieved our goal of significant reduction in UK transport CO2 emissions with a reduction of 5% this year.

We have driven this continued year-on-year improvement by scrutinising the details of all areas of our operations including:

• Transport planning and scheduling;
• Improved fuel efficiency from updated fleet;
• Improved fuel efficiency from driver behaviours; and
• Reduced business travel via company cars.

Improvements in the way we plan and schedule journeys has resulted in a 6% mileage reduction this year and we plan to increase that figure for 2017.

Ways in which we have achieved this have included increased flexibility in the mix of goods on board. For instance, we have started to move store display equipment alongside regular clothing product deliveries. We also continue to benefit from consolidating click and collect orders as part of this mix with this product occupying around 7% of the total volume on our fleet, in line with the previous year.

Spectrum for Arcadia (SfA), our transport and logistics partner, has conducted a trial in northern Scotland this year to investigate the benefits of sharing networks with other retailers. Once we have completed this pilot scheme, SfA will review and consider whether to propose that Arcadia adopt this approach for other locations from 2017 onwards.

SfA have also laid the groundwork for a trial next year to create a more effective collection schedule to ensure our vehicles are as full as possible on all return journeys.

SfA’s trial of the new ‘teardrop’ design lorry bodies this year was successful and they are planning to adopt them in line with our fleet replacement plan.

Once again our SfA team of drivers received training in fuel-efficient and safety conscious driving style this year, which has been proven to increase the miles per gallon travelled.

Our management team has demonstrated individual commitments to reduced impact this year by switching from car to train for journeys and using video and audio conferencing wherever possible. On a like for like basis there has been a 35% reduction in company car mileage.

Our UK-based initiatives are mirrored by the commitments made by our third party forwarders and carriers. The long-term partnerships we have forged in this area continue to reap benefits. By selecting best-in-class partners we can be sure that they share our commitments to reducing environmental impacts and CO2 emissions.

When we consider the relative impacts of the different methods of moving our products, it is clear that moving goods by ship has the least impact in terms of emissions per kilometre travelled and our ocean freight partners continue to focus on reducing emissions. For example, NYK one our largest ocean freight partners has been using an environmental management indicator to continually manage and achieve its C02 emissions targets. This has resulted in an improvement of 14.3% between fiscal years 2010 and 2015.

REDUCING CLOTHES MILES

We are all familiar with the concept of food miles; the distance ingredients have travelled from farmer to fork. We have extended this concept to clothes miles, removing unnecessary shipping of goods between source and point of sale.

In September 2016, our new Singapore Distribution Centre was fully operational saving 8,300 nautical miles with every shipment that no longer comes via the UK for our international partners.

During its pilot phase for TOPSHOP/TOPMAN, the DC has enabled more efficient movement of product and has reduced impact by being located nearer to many of our end consumer markets.

The DC employs best practice in terms of energy efficient lighting and heating, replicating the position within our UK network, including a commitment to recycling.

TOPSHOP/TOPMAN are also increasing direct shipments to the US, further reducing product that passes through the UK en route to its final consumer-facing destination.

NEXT STEPS:

• Develop plans to create a new custom-built UK distribution centre that will meet best-in-class standards for build and operating efficiencies
• Continue to address transport planning and routing to drive further reductions in mileage, fuel consumption and CO2 emissions

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