RE: LOGISTICS
Figleaves.com and JD Williams where it is presented as a delivery option. However customers can sign up to the myByBox service which allows them to use it with any online retailer. Discussing the benefi ts of the model, Miller says: “Collection models such as ByBox are proven to be 83% more effi cient as journey time and fuel consumption is reduced thanks to delivery to a set series of locations, making multiple deliveries at a single locker site. Compare this to the stop-start nature of a standard courier delivering direct to a location, covering a far greater distance in an uneconomical driving style. In addition, deliveries can be made during the night to avoid peak hours and traffi c congestion, leading to signifi cant reductions in fuel consumption and therefore cost.” Additionally, he adds that careful locker placement such as in train stations or supermarkets allow for customers to fi t it in around their normal routines, which further reduces the solution’s carbon impact.
Fleet improvements
While reducing the number of destinations has a part to play, Argos believes that driving down the environmental impact of its fl eet is key. It has undertaken numerous projects to improve the effi ciency of its deliveries not only to the customers, but to its stores as well. Brian McCarthy, Argos home delivery director, says: “Argos reviews its distribution operation and routes on a regular basis to optimise the eff ectiveness of vehicles, reduce the number of kilometres travelled, reduce costs and maintain high levels of customer service. Argos’ fi rst time delivery success rate to home delivery customers has improved year on year over the last three years, despite a reduction in our overall cost base. This result has been achieved by better eff ectiveness of vehicles, including working with manufacturers to source lighter vehicles with greater carrying capacity.”
Working with its logistics partners DHL and Wincanton Argos has also worked to improve the fuel effi ciency of its vehicles using a number of measures including: installing speed limiters on vehicles; cut- out switches; monitoring driver behaviour through technology; and using low resistance tyres.
The business, which is owned by Home Retail
Group, also shares a fl eet with its sister company Homebase, when practical. It is schemes such as this which McCarthy believes need to be implemented more widely by the retail sector. He says: “There needs to be even greater collaboration between retailers in sharing resources. In the Republic of Ireland, our fl eet makes deliveries on behalf of Shop Direct and they do the same for us in Northern Ireland and we are constantly reviewing other opportunities like this in the UK. We’re starting to see less ‘preciousness’ in the industry of retailers only wanting to use their own branded fl eet which is very encouraging, with some of the supermarkets now sharing fl eets.” Since 2006, the amount of CO2 emitted by the
Group’s fl eet has reduced from 98,000 tonnes to 70,000 tonnes per annum.
Shop Direct Group (SDG) – whose brands include
Littlewoods.com, Very and Isme – is also taking action to improve its fl eet. Delivering over 25 million parcels every year, SDG says it takes its environmental responsibilities very seriously. Through work with its delivery partner YODEL, it has recently introduced aerodynamic cheetah fastback trailers and invested in over 100 double-decker trailers resulting in a reduction in its carbon footprint by 9,000 tonnes per year. So it appears online retailers are pushing to drive down their environmental impact, but are they doing enough? Looking to the future, it looks like they will have to try even harder if they are going to overcome the stigma of using too much packaging. And after all, it is important to remember that creating less waste and using fuel economically is good for the bottom line.
“What’s
good for the bottom line of the delivery service
provider is generally going to be good for the environment”
Argos believes retailers should share more resources, such as fl eets, to drive down environmental impacts
Pedal power
Reducing the impact of online deliveries was taken one step further by Waitrose’s Cambridge branch which in 2008 launched its eco-friendly delivery scheme using bicycles. It saw employees saddle up to increase the number of delivery slots available for customers without increasing the number of vans on the road. The bicycles, which come with electronic pedal assistance, were used to deliver goods to customers within a 15 mile radius of the Cambridge branch. The bags used for the deliveries were taken back by Waitrose to be reused or recycled.
58 RETAIL ENVIRONMENT | JUNE 2013
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