Mondelēz 2023 Snacking Made Right Report: Logistics
OUR LOGISTICS OPERATIONS
Outbound logistics activities (from manufacturing plants to customers) represent about 4% of our total company CO2e emissions. Most of our operations are outsourced, thus partnering with our suppliers is crucial to help deliver our net-zero emissions ambition. The main contributor to our emissions is truck transportation (about 85% of total logistics emissions).
At Mondelēz International, we’re working hard to reduce the emissions caused by our logistics operations across a range of activities. Efforts include investing in new and energy efficient mobility solutions, as well as switching to renewable energy sources in our warehouses. We’re also aiming to use optimized distribution routes, reducing travel distances and improving the ways in which we use trucks and containers.
Mondelēz International in India has been a particularly strong performer in this area. For example, it has partnered with Indian Railways and used the coastal waterways network to improve distribution, enabling the reduction of CO₂e emissions associated with distributing chocolates and biscuits from our southern manufacturing cluster. This collaboration additionally helped in reducing lead time on these lanes.
In India, we made further cuts in our CO₂e emissions by installing hundreds of solar panels at our largest distribution center there.
In the U.S., we reduced idling time in our Direct Store Delivery operations and improved the vehicle fill rate across our distribution networks.
We’ve also introduced some innovative mobility concepts across our Indian distribution network, including the use of compressed natural gas, eutectic technologies and pilots of electric transportation for urban deliveries. Electric transportation has also been piloted in a variety of markets, including China, the U.S. and Brazil.
In France, by consolidating warehousing and co-packing activities on a single location, we have shortened the distance trucks travel over the course of a year from plants to warehouses by hundreds of thousands of kilometers. We’ve also reduced outbound deliveries to our customers by combining Confectionary and Bakery products in the same trucks, decreasing travel.
In Europe, we run a program called Design to Transport which aims to enhance our transportation efficiency by improving vehicle utilization. Three pillars of this program are pallet height optimization, pallet loading optimization (e.g. double stacking) and our Pack Light Right program, which optimizes truck space utilization and drives air reduction in transport. In 2023 this program eliminated over one thousand trucks transiting between our manufacturing facilities and distribution centers.
