November 23, 2009

Kraft Rolls Up 50M Miles Saved Through Transportation Efficiency

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Since 2005, Kraft has saved more than 50 million miles in its transportation and distribution processes globally.

The savings came from a variety of initiatives, according to a press release.

By shifting to barge shipments of wheat to its Toledo, Ohio, flour Mill, Kraft knocked out 10,000 truck shipments and reduced 2,000 tons of CO2 emissions, while saving more than 1 million miles.

Also in North America, Kraft is using 11 hybrid direct store delivery vehicles, which use 30 percent less fuel, for frozen products deliveries.

In Mexico, the company invested in a double-decker system that allows twice as many pallets to be delivered per shipment.

In Europe, the company has adopted a single hub in Slovakia, which means 20 percent fewer trips between factories and distribution centers.

To optimize miles driven by its own trucks and 50 of its carriers, the company is using software from Oracle that has helped minimize “empty miles,” shaving 500,000 miles from the supply chain distribution.

In the U.K., rail is taking more prominence. One of Kraft’s major customers there takes products by rail instead of truck, a process that has saved 40,000 miles and 120 truck shipments.

The company is working to reduce its environmental impacts in other areas, too. Over the past three years, Kraft reduced its water consumption in manufacturing processes globally by 21 percent, or by more than 3 billion gallons. This exceeds the company’s goal two years early.

Kraft was named the No. 8 most reputable firm in the Boston College-Reputation Institute 2009 CSR Index.

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You might be interested in this blog Is “local food environmentally costly?” http://cabiblog.typepad.com/hand_picked/2009/11/is-local-food-environmentally-costly-.html based on paper on the difficulties of assessing the environmental footprint of “local food” versus mass-distributed food.

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