IMPROVING THE LOGISTICS CHAIN’S PERFORMANCE

Given the high volumes of products delivered to Group stores, the optimization of our transport and logistics activities represents a major sustainable-development challenge. Among other initiatives, Carrefour has decided to make an effort to reduce the number of kilometres travelled by road. Following to the actions implemeted by the Group, 14,300 tonnes of CO2 was thus saved (upstream and downstream transport) in France in 2009, with some 43,800 fewer trucks on the roads.

A partnership policy was initiated in 2001 in order to discuss the issue with all players in the supply chain. The Demeter Environment and Logistics Club now includes private-sector (manufacturers, retailers and service providers) and public-sector players, who work together on transport optimization.

Reducing road travel to warehouses

Now more than ever, Carrefour is looking for alternative means of transport for deliveries to Group warehouses. In 2009, for example, 45% of imported products destined for hypermarkets in France were transported by river and rail (as opposed to 41.7% in 2008), i.e. 4,000 fewer trucks on the road and 800,000 fewer kilometres travelled. In Spain, 100% of containers from Asia arriving at the port of Barcelona and 76% of containers arriving at Valencia were sent by rail to Madrid.

In order to reduce mileage on the road, the Group has accelerated the pace at which it sets up consolidation platforms since 2008. These platforms enable suppliers to reduce their mileage and Carrefour to send full trucks containing products from several suppliers to the warehouses. Preliminary studies show savings of 25% in CO2 emissions per pallet transported (upstream/downstream). Five new consolidation warehouses were opened in France in 2009, bringing the total number to seven.

Improving downstream transport

For downstream transport, Carrefour has implemented actions to reduce the number of kilometres travelled by road. One solution the Group has adopted involves the development of multimodal transport. In France, for example, some stores in the South receive their deliveries by rail and road. Some 4 million km of rail transport has meant 8,000 fewer trucks on the road and savings of 2,180 tonnes of CO2. In 2010, this system will also be extended to supermarkets. Other solutions developed by Carrefour to reduce the mileage of its trucks include load optimization, smoothed delivery times, synergies between deliveries to hypermarkets and stores of other formats and synergies with upstream transport via the development of backhauling (return rounds), which will allow trucks that have already made their store deliveries to reload at nearby suppliers in order to take goods back to Carrefour warehouses instead of returning empty.

Reducing warehouses’ Environmental Impact

Based on experience acquired through managing the environmental performance of its stores, the Group has now extended the monitoring of sustainable-development indicators to its warehouses in France, included in the system since 2008 and audited in 2009. In 2009, this was also extended to other countries.

Every year, Carrefour warehouses in France undergo a sustainable-development audit. In 2009, a total of 55 audits were carried out.

Raising awareness among Supply Chain teams

To raise awareness and inform staff of sustainable-development objectives and how they can be achieved, a special training module has been developed for all Supply Chain teams in France. This training course, initiated in 2009, aims to help employees integrate sustainable-development considerations into their working environment. Training was provided to 327 staff members in 2009, and 900 more will take the course in 2010. In 2009, a sustainable-development incentive was included in the variable pay of French Hypermarket Supply Chain employees.

Download a diagram of the Carrefour Group actions to reduce carbon emissions throughout the supply chain: