Supply Chain Weekly Wrap-Up 03/10/2023-03/16/2023

Supply Chain Weekly Wrap-Up 03/10/2023-03/16/2023

Time Stamp: March 17, 2023 12:35 PM
Source Node: 2015614

DHL adds Volvo EV to fleet for net zero

DHL Supply Chain has introduced the first fully electric vehicle (EV) to its UK fleet. The Volvo FM electric trucks are designed for high-capacity deliveries, operating at 40 tons and will replace polluting diesel vehicles on a range of activities. This is in line with the company’s goals for a sustainable future. In a mission statement the company stated, ‘We’re already making green logistics a reality, but our continued commitment to reduce emissions to net-zero by 2050 means we’re one of the foremost eco-friendly logistics companies shaping the future of the industry today.’

Choosing this type of EV allows DHL to continue its current operations without losing out on their current delivery efficiency. As the EV has Volvo’s largest 540kWh battery, the zero-emissions trucks have a range of up to 180 miles (300km), allowing them to complete full round-trips servicing DHL’s retail and automotive customers across the UK.

This rhetoric is further reemphasized as Saul Resnick, CEO DHL Supply Chain UK & Ireland, said “The size and capability of these trucks make them a truly viable alternative to diesel as they fully meet our needs and those of our customers.”

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Nestlé’s goal for sustainable packaging

Nestlé has vowed by 2025 to have 95% of its plastic packaging be recyclable and eventually, the company wants all its packaging to eventually be recyclable or reusable. With aims of achieving net zero greenhouse gas emissions by 2050. While the majority of its CO2 emissions come from the sourcing of ingredients, such as dairy, another 12% is generated from packaging, providing the company with a way to achieve its shorter-term goal.

Although the company knows to reach its 2050 emissions goal, it’ll have to achieve a greater control of its supply chain. A change Nestlé has highlighted for change is to develop paper capsules for its popular Nespresso platform. Starting in 2019 the company had to overcome the challenges that paper packaging brings while maintaining the same quality and taste consumers expect from the Nespresso brand.

Alternative products that have been incorporated into their packaging are, paper and glass. As over the recent years society has made a concerted effort to alleviate the demand for plastic packaging. While the material’s durability, low cost and water-resistant capabilities have made it popular, plastic has been condemned for polluting the environment and endangering wildlife.

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NYK sells air cargo operations to ANA

Japanese shipping and logistics company Nippon Yusen Kabushiki Kaisha (NYK) announced it would sell its air cargo business to Ana Holdings. NYK purchased Nippon Cargo Airlines (NCA) in 2010 with the intention of becoming a comprehensive logistics company however, the air freight’s turbulent market led to expansion challenges due to the increase cost for labor and equipment, according to their press release.

While NYK plans to sell its NCA subsidiary to offset costs amid a declining market, other ocean shipping lines continue to strengthen their air freight operations in a bid to become end-to-end supply chain providers.

Lars Jensen, CEO of Vespucci Maritime, said in response to the NYK sale. “A move opposite the prevailing ‘fashion’ of container lines investing into airfreight,” though noted that shipping line ONE was not involved in the transaction. Nonetheless, it showcases the “challenges involved in running a successful airfreight operation.”

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