Tuesday, June 14, 2011

Food Kilometres — The Debate Continues

Food kilometres — it’s a big subject and not an easy one to cover in a short article like this. Some industry estimates reckon that food in the UK is transported for a total of nearly 30 billion kilometres each year between producer and retailer. Around 80% of this is inside the UK. Leaving aside arguments about where food is produced for a moment, it is clear that once that food is in the UK supply chain there are good business reasons to reduce the number of kilometres travelled to reduce the carbon footprint, minimise fuel costs and save time.

Defra estimates that HGVs and LGVs together account for over one third of all UK food kilometres. Indeed, food transport accounts for 25% of all HGV vehicle kilometres in the UK. But while the annual amount of food moved in the UK by HGV has increased by almost a quarter since 1978 the average distance for each trip has increased by half. This is due in no small part to the changes in retail that have taken place during the same period with the growth of the major supermarkets. This has a major impact on the amount of fuel being used and the number of vehicles on the roads. And it all costs money.

The industry has responded well to these changes. The IGD recently announced that the food and grocery sector has saved 163 million HGV miles through a series of initiatives which have ensured excellent progress towards its voluntary target — supported by Culina Group - of removing 200 million food miles from the country’s roads by the end of this year. This is the equivalent of 2600 fewer vehicles on the roads.

There is more to do and any business involved in the food supply chain can contribute. Logistics operations should be planned carefully to minimise the number of food kilometres without adding undue burden onto the business or compromising its ability to service its customers. Careful load planning and route scheduling help to minimise the distance travelled and optimise loads for maximum vehicle efficiency and productivity. This is more than using the satnav on “minimum distance” setting - many operators now use sophisticated software applications that optimise orders, loading and delivery routes. In fact, HGV tonne kms have increased by 36% since 1991 and by over 100% since 1974, according to DEFRA, which means vehicles and journeys are more efficient than ever before.

Load planning is important. This can cover everything from assembling and loading orders in the correct sequence for efficiency and economy so that the first to be delivered are loaded last. Additional economies can be achieved in third party operations by sharing loads between different customers. This will help to ensure that each pallet or roll cage is loaded near to its full capacity so that the maximum available space is utilised inside the vehicle. The vehicle operates at or near to its maximum carrying capacity which is good for efficiency and minimised food kilometres.

Good load planning and scheduling also help to reduce or even eliminate the need for empty vehicle movements. Third party logistics companies with network operations often transfer products from one warehouse to the other on the “return” journey to maximise the efficiency of their operations. The location and number of distribution centres is also a factor. Too many may add complexity and inefficiency into the operation but too few may lead to overly long delivery distances.

Another way to reduce food kilometres, and costs, is to consolidate processes into fewer sites or even a single operation. On-site copacking or similar rework, for example, reduces vehicle movements associated with collecting items and delivering them to third parties - which could avoid four journeys in total - saving time, money, and management overheads.

Of course, each operator and contract will have an optimum balance between these and other factors. And while these may change depending on the day-by-day circumstances the operational efficiencies created by good planning, scheduling and application of supporting tools all remain very important.

At the same time there are other efficiencies that reduce the impact of road haulage. This can include selecting energy-efficient vehicles and scheduling deliveries for times of the day or week when there is likely to be less congestion on the roads, reducing the time spent idling rather than travelling. Both will contribute to the reduction in the fuel used even when the actual distance driven stays the same.

More generally discussions about food miles often include where the food is produced and whether switching to more local suppliers is more sustainable. Whichever way the argument falls, the distribution industry has a role to play by making sure that its operations are as efficient and well-organised as possible.

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Note to editors:
The Culina Group is the leading provider of complete supply chain solutions to the food, drink, horticultural, perishable and grocery manufacturers. It comprises: Culina Logistics Limited, Culina Fresh Limited, Culina IPS Contract Packing Limited and Culina Logistics Ireland Limited.

For further information please contact:

Debbi Hutt Culina Logistics Limited
T: 01630 695336
M: 07768 623672

Keith Wootton Public Relations
T: 01327 830675
M: 07778 315966

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