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AS Watson Boosts Supply Chain Sustainability to Combat Climate Change

July 25, 2024 3 min read
author Anamika Mishra [Sub Editor]

AS Watson, the world's leading multinational health and beauty store, has increased its global supply chain sustainability efforts by shifting to electric delivery vehicles and initiating waste reduction programs to combat climate change.

According to Malina Ngai, Group CEO of AS Watson, “As a responsible global retailer, sustainability is at the heart of our business. We’ve been investing and innovating to lessen our environmental footprint and contribute to a more sustainable future. Our most recent endeavor focuses on improving the environmental impact of our supply chain's delivery fleet. We have 12 retail brands in our global portfolio, and 60% of them are now employing electric vehicles for some warehouse-to-store and online order deliveries. While the industry's acceptance of electric vehicles is gradual, I believe we should rise to the challenge of launching this program in as many areas as possible."

Ngai added, "Electric vehicles have a limited driving range per charge and insufficient charging infrastructure, making long-distance deliveries difficult." Furthermore, current technical solutions for reducing charging times and improving overall performance are not widely available. These limits make it difficult for several of our operational markets to broadly deploy electric vehicles. We remain dedicated to addressing these challenges and switching our delivery fleet to more environmentally friendly electric choices wherever possible."

A recent survey [1] found global direct carbon dioxide emissions from heavy and medium-duty vehicles climbed by 2.4% to 1.8 billion metric tons (GtCO₂) in 2022, accounting for approximately 25% of global transportation CO₂ emissions. Using battery electric vehicles can reduce CO₂ emissions by at least 63% compared to diesel vehicles [2].

AS Watson has intensified its attempts to implement electric cars in its global delivery network. Watsons China has made great progress, with electric trucks currently accounting for more than 80% of warehouse-to-store deliveries on average in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Chongqing, and Xiamen.

For online order delivery, Superdrug, Savers, and ICI PARIS XL have begun using electric vans and e-Cargo motorcycles in Central London and 13 emission-free zones in the Netherlands, respectively. Furthermore, Watsons China, Singapore, and Taiwan have implemented electric vans and motorcycles for nationwide online order deliveries.

Meanwhile, Superdrug, Savers, Kruidvat, and Trekpleister have begun to transition to greener fuels such as liquefied natural gas (LNG) and compressed natural gas (CNG), which emit fewer carbon emissions than standard diesel fuel.

Promoting positive change through Waste Reduction.

In addition to electrifying its delivery vehicle, AS Watson has achieved tremendous progress in waste reduction across its worldwide supply chain, diverting more than 95% of warehouse waste from landfills. Furthermore, AS Watson has decreased the usage of virgin plastics in its online business packaging by 50% year on year, demonstrating its dedication to environmentally friendly packaging solutions.

Ngai stated, "We will continue our journey toward supply chain sustainability." We anticipate increased adoption of electric vehicles and the implementation of more waste reduction efforts to contribute to a more sustainable future. Sustainability is more than a catchphrase at AS Watson; it is a culture that all 130,000 of our colleagues around the world embrace every day. Only by working together can we make a truly substantial difference on the earth."


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Keeping Trucks Rolling: Innovations in Aftermarket Trailer Support

July 24, 2024 4 min read
author Anamika Mishra [Sub Editor]
related

Keeping supply chains running and fulfilling demand for same-day deliveries has prompted caravan maintenance firms to reconsider how they might improve assistance through technology, services, and partnerships.

Companies are gaining more flexibility in fleet management and preventative maintenance thanks to new capabilities like trailer-health analytics. In order to meet a critical demand of transportation companies—easy, dependable access to authentic parts at fixed prices—some Original Equipment Manufacturers (OEMs) are coordinating efforts

both internally and with dealers.

It is now the responsibility of transportation businesses to comprehend the range of caravan maintenance options and select the one that best suits their requirements.

Using Data to Make Better Maintenance Decisions
The use of telematics technology is no longer restricted to well-funded, big transportation businesses. Modern telematics systems, which allow for real-time tracking of the health and activities of a trailer, are standard equipment on some trailers carried by OEM dealers. Dealers can package them so that small and mid-sized businesses can monitor and maintain their fleets in an easy-to-manage manner.

Caravan sensors give data-driven insights into a variety of topics, including rear door condition, miles driven, axle temperature, weight distribution, and light operation. With this information, transportation businesses can maximise fleet performance, save maintenance costs, and increase caravan lifespans.

Other uses for telematics data can also be beneficial. Due to the growing popularity of drop and hook, trailers are becoming more and more detached from vehicles. Telematics data helps businesses monitor the whereabouts of their trailers and safeguard their goods and equipment by setting off alarms when trailers deviate from pre-established routes. Additionally, the data enables businesses to develop predictive maintenance plans that lower unplanned caravan downtime.

Furthermore, OEMs can use the aggregated data to better understand the maintenance requirements of their equipment, even if only trailer users will receive the telematics data for their trailers. With the use of these data, original equipment manufacturers (OEMs) can enhance the advice they give to clients and their dealers, such as parts availability recommendations for particular caravan models.

Using New Service Models to Reduce the Burden
As an alternative to the conventional leasing model, new industry offers give transport companies greater flexibility in how they run their businesses.

Subscriptions to Trailers as a Service (TaaS) are one such instance. They enable businesses to transfer clients' shipments without the burden of worrying about upkeep and maintenance expenses.

A subscription to TaaS might be particularly attractive for asset-light businesses like digital brokers. While the OEM oversees all facets of caravan support through a nationwide network based on its dealers, TaaS enables these businesses to concentrate on what they do best—using data to design the best shipping routes.

In addition to tracking asset operations, smart caravan telematics may be used to monitor caravan health, which can be beneficial for purposes beyond basic logistics.

In one instance, a TaaS subscriber's maintenance issue was resolved with the use of smart caravan data.

It was unexpected that a tyre blowout occurred on one of the company's trailers, given that it was brand-new. The failing tyre didn't match the tyre that was assigned to that trailer, according to an analysis of the inspection data and telemetry data for the trailer. It transpired that the trailer's prior lessee had driven it off course, swapping out the new tyre with an older one. The TaaS subscriber was able to demand that the lessor cover the cost of replacing the tyre as a result of this discovery.

Facilitating Parts Access through Closer OEM-Dealer Collaboration

The transportation sector is working to give dealers more authority when it comes to maintaining and repairing trailers.

Since they are aware of each customer's particular transportation requirements and offer maintenance services that keep their trucks and trailers operating, dealers already enjoy a great rapport with their clients. Dealers, however, serve as an invaluable link between caravan OEMs and consumers. They provide OEMs with vital customer input, are knowledgeable about OEM products, and supply aftermarket parts.

Dealers should naturally be at the centre of caravan lifecycle support, given the tight relationships they have with OEMs and customers. Dealers can act as a reliable partner to assist transportation firms in addressing some of their most pressing issues, particularly in the modern business environment. This includes offering consistent pricing to help clients manage expenses during freight downturns and facilitating easy access to OEM authentic components to help customers maintain trailer uptime.

Services and Assistance That Are Particular

Enhanced assistance The pressure on transport businesses to operate more effectively will only grow due to factors including new laws, fluctuating fuel prices, and short e-commerce delivery expectations. Carriers will increasingly look to their aftermarket partners to assist them in achieving such efficiency improvements. They'll probably give preference to partners who have creative ideas for increasing fleet uptime via dependable aftermarket assistance.


Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.

Discover all our upcoming events and secure your tickets today.


Journal of Supply Chain is a Hansi Bakis Media brand.

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