Providing seamless distribution with lower CO2 emissions
Through its state-of-the-art warehouses, distribution expertise and strong network, B&S is able to deliver the best consumer products in a timely and secure manner. From full container loads to e-commerce parcels, we handle millions of inbound and outbound shipments worldwide. Yet, leading the way in distribution equally means taking action to make freight transport a much more sustainable operation.
The process
By working more efficiently and choosing more environmentally friendly modes of transport, such as barges, we are reducing CO2 emissions from our logistics operations as part of our sustainability commitments.
B&S provides end-to-end solutions according to each customer’s needs, starting with easy and reliable access to a wide range of goods. For every shipment we make, our logistics team selects the best transportation option based on different criteria such as the type of product, destination and customer’s requirements. And while the transport options are various - by truck, barge, air cargo, sea freight, or a combination thereof - the impact of each shipment is a factor that plays an increasingly important role.
Joel Haas, Logistics Director at B&S Dordrecht facilities: “We are working to maintain a high level of service to our customers while looking for alternatives to achieve our CO2 reduction goals. In collaboration with our business partners and the support of our Board, we began looking into transporting goods by barge. On average, barge transport can result in up to three times less CO2 emissions compared to alternatives such as trucks”.
Stefan Rademaker, Customer Service & Transport Manager at B&S: “To determine whether barge transport was a viable option, we needed the expertise of colleagues across the organisation, from sales to sustainability. We had conversations to explain what we were doing, why we were doing it, and invited their input: can we meet customer expectations using barge transportation? Is it financially feasible? What other risks can we think of? We ultimately determined that for more orders than initially thought, barge transportation is a viable option.”
Taking all factors into account
Stefan: “Not having to compromise in our lead times or customer service was a main condition for choosing barge. We learned that while truck transport may be quicker, the goods often arrive at the port a few days before they are loaded onto an ocean carrier. Goods transported by barge take an extra one to three days, but ultimately, they end up on the same ocean carrier. As a result, the final moment of delivery remains the same. In those situations, barge transport is a perfectly suitable and a much more sustainable alternative.”
Joel: “In addition to the lead times, the product category and the destination of an order determine whether or not we can use barge. In our food segment, we often need reefer containers, as some products must remain frozen or refrigerated. Therefore, these shipments are not suitable for barge transport due to the limited time a container is made available by the shipping line. Or, some product categories require a lot of paperwork or are of prime necessity. Also, a container needs to be delivered at a barge terminal approximately three days prior to the port terminal closing to remain on schedule. In the case of trucks, only one day is needed, which limits the risk of missing the closing time. Sometimes, even if an order qualifies to be transported by barge, unfortunately, we have to transport it by truck due to lack of containers at the barge terminal."
The outcomes
A rise in barge transport
In 2022, our Veendam, Delfzijl and Dordrecht locations transported 28% of all planned containers via barge. The percentages vary per location, but are quite close in Veendam with 40% and Delfzijl with 38%. Due to the perishable nature of the goods handled in Dordrecht, the percentage is lower at 26%. Stefan: “We are accelerating rapidly and our aim is to increase these figures even further by 2023. We will continue to work closely with our customers and logistics partners to make this possible.”
Measuring CO2 savings
Our logistics team has begun to gauge the effect of this new approach. Michael Schippers, Operations Manager: “Opting for barge transport has resulted in the avoidance of 422,259 km of road transport, which is the equivalent of circling the Earth 10 times. This mode of transport not only contributes to reducing congestion on the busy roads leading to the port, but also emits much less CO2 than road transport.”
How much CO2 we are saving exactly will soon become clear. We are currently updating our logistics planning systems to measure our transport-related CO2 emissions and will set Science Based Emission Reduction Targets this 2023. This will enable us to reinforce our efforts to stay on track towards our sustainability goals and reduce our climate change footprint.