Unilever sustainable logistics

9.5 million less truck kilometres for Unilever

Unilever sustainable logistics - reduce environmental footprint costs and improve customer service

Unilever is leading in sustainable efficient logistics in Europe. Unilever’s logistics company, UltraLogistik, already has beaten its initial targets on CO2 emissions, moving 30% of its freight by rail and water in 2010. This equals 9.5 million less truck kilometres and puts Unilever in Europe up to five years ahead of its competitors. And saves more than 10% costs at the same time.

Simon Smith, Vice President Logistics of Unilever in Europe: “Our innovation in logistics creates real value for the business and the planet. By 2009, UltraLogistik, moved around 19% of European freight to ‘off-road networks’, such as rail, short sea crossings and inland waterways. In 2010, we have increased this to 30%, which equals a reduction of road kilometres of more than 240 times around the world”.

“Our strategic focus on carbon reduction, cost efficiency and service quality implements the new corporate strategy to grow the business while reducing our environmental impact. Smith highlights, “We are driving efficiencies wherever possible. Since January 2010, we receive accurate monthly reports of the carbon emissions linked to each and every transport movement”.

UltraLogistik tracks every shipment across Europe, enabling short-term decision making to focus on priority shipments. “With our tracking system we know where all our shipments are and can respond quickly to changes in our customers demand”, Smith points out. ”So, we can make intelligent choices to the benefit of our customers, while driving carbon reduction actions.” With advance notification of transport demand across the supply chain UltraLogistik has the ability to manage combinations of freight to maximise load efficiency and drive actions to reduce GHG emissions.

Collaboration is the future in logistics

Reduction of 9.5 million less kilometres is not possible without collaboration. Unilever continuously drives collaboration with other manufacturers, logistics partners and retailers in Europe to reduce costs and carbon emissions.

For example, Unilever collaborated with a carrier who operates a train from Genk in Belgium to Oradea, Romania. Unilever and the carrier use the backloads on this existing route to create massive reduction. This collaboration, which is also used for Unilever’s business in the UK, reduced CO2 by 1060 tonnes.

A similar concept was used on a route from Aranjuez, Spain, to Bresles, France. Unilever collaborated with a carrier that operates shipments in the opposite direction. This resulted in a reduction of 808 tonnes of CO2 or 33 times around the world.

On other routes from the Southern to Northern Europe we joined forces with our carrier Geodis, who belongs to SNCF, the French railway system. This reduced CO2  by 466 tonnes.

In Germany and Austria we cooperated with Schenker, the logistics branch of Deutsche Bahn (DB) to reduce CO2  by 227 tonnes. This is equivalent to driving 9 times around the world.

Innovative efficiency is key

Trucks are often not fully loaded, a common theme in the FMCG and other industry sectors.  “While the trucks we manage mostly have the maximum number of pallets loaded, we realised that we were rarely hitting the maximum weight the truck is able to carry,” explains Simon. “In fact our average weight fill is just over 50%.” UltraLogistik identified this as an area for innovation and reorganised the way it loads its trucks. Better designed loading can increase the weight fill from 50% to 75%.

Another innovation project looked at increasing capacity by using a new versatile design of Double Decker known as a “Swivel Deck”. In the UK the carrying capacity of our trucks increased up to 50%. This design of trailer allows flexibility on pallet height transportation and can easily switch between Raw & Pack, Primary or Secondary “Finished Goods” movements with one trailer type.

For more information:

Media Relations Unilever Rotterdam +31 (0)10 217 4844

Mediarelations.rotterdam@Unilever.com

Unilever Brussels: Aurélie Gerth, spokesperson, +32 (0)2 333 6642 (after 18.30 hrs +32 (0)498 586 205)

Follow us on: http://www.twitter.com/Unilever_Press

Interesting links: http://www.unilever.com/sustainability

Unilever has a long-standing commitment to sustainability and has led the Dow Jones Sustainability Index for 11 consecutive years: http://www.sustainability-index.com

About Unilever

Unilever works to create a better future every day.  We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We are one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries. Our portfolio includes some of the world’s best known and most loved brands including eleven €1 billion brands, and global leadership in many categories in which we operate.  The portfolio features iconic brands such as Knorr, Lipton, Algida, Dove, Sunsilk, Cif, Coccolino, Svelto. We have around 163,000 employees in approaching 100 countries, and generated annual sales of €40 billion in 2009. 
For more information about Unilever and its brands, please visit www.unilever.com.

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