Chapters
Annual Report 2019

2.5 Effective transportation

We convert more customers into fans by responding to their delivery needs as quickly as possible. To accomplish this, we rely on our transportation partners to deliver our products from production facilities to our RFHs and then to our stores. We recognize the environmental impact our work has, and we work to reduce our negative environmental impact in line with the global climate change agenda.

The journey our products take from our suppliers to our customers is covered by multiple segments, which can be broadly described as:

  • Inbound transportation: From production facilities to our RFHs
  • Outbound transportation: From our RFHs to our store network
Inbound/outbound transportation / % of total shipments

Inbound transportation - production to RFH

2019

2018

2017

2016

2015

Ocean (% of total shipments)

64%

75%

62%

73%

54%

Air (% of total shipments)

36%

25%

38%

27%

46%

Outbound transportation - RFH to stores

2019

2018

2017

2016

2015

Road (% of total shipments)

99.2%

95%

92%

98%

100%

Air (% of total shipments)

0.8%

5%

8%

2%

0%

Inbound transportation is done by ocean and air, while outbound transportation is mainly done by road travel. Our transportation policy and performance are tied to product demand. Our customers want a wide variety of products delivered as quickly as possible, which can be seen by increased inbound air shipments. That’s why in 2019, GrandVision transported more frames by air compared to 2018 — an increase from 14% to 19%.

However, we also want to reduce our carbon emissions and this poses a dilemma for us, as air transportation is faster than boat, but is more carbon-intensive. We try to mitigate our increased transportation-related environmental pressure by optimizing product packaging. See paragraph 'Improved packaging reduces environmental impact' below.

Transportation / % of total transport movements

Transportation mode

2019

2018

2017

2016

2015

Ocean

33%

34%

33%

40%

33%

Road

49%

52%

44%

44%

39%

Air

19%

14%

24%

16%

28%

Transportation carbon footprint

2019

2018

2017

2016

2015

Inbound (tons CO2e)

2,711

3,156

5,116

3,431

3,590

Outbound (tons CO2e)

165

691

920

303

92

Total (tons CO2e)

2,876

3,847

6,036

3,734

3,682

Due to improved inventory planning, we had fewer inbound and outbound shipments, which is reflected in our total CO2 reduction from transportation.

Our goal is to keep balancing customer demands while reducing the environmental impact of our transportation modes. In 2020, we will work to collect even more data points about our product transportation.

Apollo Optik’s Reduce and Replace project

When Apollo, our German retail brand, reduced its waste volumes, they inspired our own company-wide ‘Reduce and Replace’ project.

By minimizing plastic packaging and sending reusable delivery boxes between RFHs and stores, Apollo's supply chain team reduced its outbound CO2 footprint. In 2019, they reduced CO2 emissions by more than 19 tons. Based on the activities listed above, and additional initiatives that will be introduced in 2020, Apollo expects to save an additional 117 tons of CO2.

Improved packaging reduces environmental impact

It is widely known that air transportation is very CO2-intense. However, we acknowledge that air transportation is an essential part of our logistics mix to guarantee speedy delivery to our customers. In 2019 we rolled out some initiatives to lower our transportation-related carbon emissions:

  • Reduced packaging material by optimizing box sizes
    • Results: Used fewer cartons and reduced empty space/volume during transportation.
    • Example: Optimizing box sizes reduced an estimated 20% of packaging material used (carton). This led to an estimated 5% to 20% reduction in transported weight, on both inbound ocean and air, as well as outbound truck transport, resulting in lower CO2 emissions.
  • Consolidated volume to optimize transport
    • Results: Fuller container loads shipped using ocean transport and more efficient truck loads for road transport.
    • Example: We introduced consolidation points in Asia, which optimized inbound flow of products by air and ocean. This will lead to an estimated yearly savings of 6% on CO2 emissions.