- What is Sustainable Distribution?
- Why is Sustainable Distribution important?
- Best practice examples
- The IGD development curve
- What do I do next?

What is Sustainable Distribution?

Sustainable distribution considers a range of measures which can be used to cut CO_² within companies’ logistics systems. It looks at the storage and movement of goods in a way that supports continued economic growth, while protecting the environment and delivering a better quality of life for future generations.
 

The Three Elements of Sustainable Distribution

Source: IGD Research 2008
 

Why is Sustainable Distribution important?

Macro drivers:

• Climate change - correlation between CO₂ and temperature
• Fossil fuel availability and prices – soaring demand and price of oil and diesel
• Road capacity and congestion – road traffic going ahead of road capacity
• Energy use – rising prices and grocery industry becoming less energy efficient

Micro & business drivers:

• Centralised distribution – supply chains built around bulk movement of product
• Stockless supply chains – the move to smaller, more frequent deliveries
• Business consolidation – manufacturing efficiency versus transport costs
• Globalisation – distribution challenges of international operations and sourcing
• Developments in product range – shift from ambient, frozen and national ranges to short shelf life, chilled and local product ranges
• Consumer expectations – driving logistics practices and methods of operation
   
   

Best practice examples

The IGD development curve

As part of our research into sustainable distribution practices, IGD created the Sustainable Distribution Development Curve to illustrate the progress of sustainable distribution by the food and grocery industry.

Source: IGD Research, 2007

IGD believes the UK food & grocery industry could realistically be positioned well within Stage 5 of the development curve, since there have been a number of developments which match with the characteristics of this stage. Oil prices have reached record highs strengthening the financial incentives for change.

New types of vehicles such as electric, hybrid and gas powered are being trialled and developed, as is the use of alternative fuels.  The use of alternative transport modes such as rail and inland waterways is increasing and distribution centres are now being built with an increasing range of environmental installations. Businesses are including sustainability as a pillar within their corporate strategies and the capabilities being developed are ahead of current legislative requirements, for example around vehicle emissions. Restrictions and punitive charging have been introduced around the use of the most polluting vehicles in cities, i.e. the London Low Emissions Zone; and there have been recent, high profile, government campaigns around the use of disposable carrier bags and the impact on landfill and the levels of food waste.
 

What do I do next?

In the future, we are likely to see the pace of change continue, with increasing legislation and continued innovation in both technology and working practices. It is important to measure and understand your current performance and the current impact of your distribution operations. Set meaningful targets against specific areas of focus and look internally at your existing operations - there is always more that you can do with your current ways of working, assets and resources. Finally, look externally for partners with whom to collaborate, sometimes going it alone is simply not enough!

Related Items on IGD.com:  Report: - Sustainable Distribution Information Resource: - Sustainability - ECR UK - Sustainable Distribution   Related Internet links: - Freight Best Practice - Department for Transport (IGD is not responsible for the content of external sites)