Our products can travel longer distances to reach consumers compared with other countries due to New Zealand’s unique geography and low population density. We also move products through road, rail and shipping, which increases the complexity of our distribution network.
Last year, we reviewed our logistics processes to identify efficiency opportunities, reduce costs, and to reduce carbon emissions associated with transporting our products. As part of the review we implemented a number of improvements that reduced the distance our products travelled by 30,000km during the year, and led to a saving of 25.91 tonnes of CO2. This is the equivalent of the annual emissions from three and half Kiwi households. The improvements included:
- better planning and management of stock levels leading to a reduction in stock moved to and from external locations
- higher density storage in our warehouses
- more direct deliveries to customers.
By adopting a true end-to-end approach, we were able to deliver considerable financial savings to the business while reducing emissions and delivering the same volume of product around the country.