Nestlé in society Creating Shared Value and meeting our commitments 2015

Nestlé in society:
Creating Shared Value
Nutrition, health
and wellness Rural development Water
Environmental
sustainability
Human rights
and compliance
Our
people
G4-EN19, Transport G4-DMA, G4-EN30
Our ‘no vehicle leaves empty’ approach is one of the key
ways we improve environmental performance in
transportation. We continue to optimise loads and route
planning, combining inbound and outbound trucks to
maximise backhauling. We also work with suppliers, retailers
and other manufacturers to share vehicles where appropriate.
An initial pilot study conducted in 2014 with a limited
number of markets shows that we have further opportunities
to improve the usage of the available transport capacity. We
are rolling out a standard reporting process that will enable us
to track vehicle utilisation in every transport team across the
Group by the end of 2016. For example:
• In 2014, Project Vector in India deployed load optimisation
and visualisation software to assess the dimensions of
incoming trucks, avoiding more than 2700 road trips, 2.4
million kilometres of travel and 1940 tonnes of CO 2
emissions, saving INR 90 million (CHF 1.44 million);
• In Australia, we have moved to using 88-pallet ‘high cube’
trucks to serve Eastern seaboard customers. The fuelefficient,
high-capacity ‘megatrucks’ have avoided 875
journeys per year, reduced CO 2 emissions by 22% and
saved around AUD 1.1 million (CHF 880 000); and
• Project Maharaja has seen the introduction of the first
45-foot double-decker trucks in Malaysia to reduce
congestion and delayed transportation between our
factories and the national distribution centre. The trucks
have cut the number of trips per day from 13 to 7, and halved
CO 2 emissions from 72.6 tonnes to 35.0 tonnes a month.
Avoiding empty trucks
We cooperate with our suppliers and customers on the use of
delivery vehicles to avoid trucks being empty on a return
journey. Transport Control Centres give the required visibility
so that we can identify transport circuits that avoid the
possibility of empty legs. After their successful installation in
Brazil, we are now rolling out Transport Control Centres in
other businesses.
Transforming transportation to
optimise load efficiency
Distribution networks
In 2015, we redesigned 10 distribution networks globally to
improve efficiency. For example, in the Middle East, we are
combining the import/export warehouse, the regional
distribution centre (RDC) and part of the raw and packaging
warehouse into one central distribution centre. This will lead to
transport synergies, and empty trips will be significantly
reduced by the use of an efficient shuttle transportation
system. It is estimated to reduce the CO 2 emissions by around
2000 tonnes per year.
Similarly, in Italy, the merging of two distribution centres
into one central site in 2014 reduced our distribution costs
significantly and avoided around 1400 tonnes of CO 2
emissions. And in China, Nestlé Waters has lowered the
average distance covered by 32% (from 447 km to 303 km)
between 2010 and 2014. The company plans to decrease it
further, to 250 km, over the next three years.
Optimised route planning
Our biggest Nestlé-owned fleet is in the United States, where
we deliver frozen products and water directly to stores, homes
and offices. Our Direct Store Delivery (DSD) business for pizza
and ice cream in the United States has completely revised all
delivery routes by leveraging new routing concepts and
optimising delivery distances, saving 3.8 million litres of fuel.
Modal shift
In finding opportunities for more sustainable transportation
options that reduce emissions, we continue to shift longdistance
transportation from roads to rail and sea wherever we
can. This helps avoid traffic congestion, cut costs, increase
efficiency and reduce GHG emissions.
Transport modes * (global %)
2014 72 102
16
2013 74 10 2 13
2012 77 8 3 12
0%
50%
Air Sea Rail Combined Road
100%
*
2014 figures are the latest available at the time of publication. Due to rounding to one
decimal place, the values might not add up to exactly 100%.
Today, trucks and trailers are designed to operate in line with
their maximum payload, but, increasingly, load efficiencies for
each journey will need to be optimised. With this in mind,
Nestlé is involved in an EU-funded project to develop
innovative trucks and trailers that can be adapted to best suit
the journey and conditions.
The TRANSFORMERS initiative – involving truck and trailer
manufacturers, researchers and end users such as Nestlé – will
run from 2013 to 2017. It is intended to improve the load
efficiency of long-distance transport. By combining a hybridon-demand
driveline with optimised loads and aerodynamics,
the project hopes to demonstrate a 25% reduction in fuel
consumption.
Through the EU Marco Polo project, we have committed to
shift the distribution of more than 360 000 tonnes of petcare,
water and cereal products from road to rail transport by 2016,
using several scheduled rail services between Italy, France,
Germany and Slovakia. This transport mode shift will take
around 5000 trucks per year off the road and save EUR 2.7
million (CHF 3.2 million) over three years.
Nestlé in society – Creating Shared Value and meeting our commitments 2015 194