Transport
Transport is a key contributor to Alliance Boots carbon footprint. The movement of goods from manufacturers to our distribution centres to retail stores, pharmacies and hospitals generates carbon dioxide. Alliance Boots is committed to reducing the amount of carbon dioxide it produces by its transport operations whilst maintaining our high commitment to frequent on-time deliveries for critical pharmaceutical products.
It makes commercial as well as environmental sense for vehicles to drive more kilometres per litre of fuel, so we continue to look at a range of different activities to improve this efficiency. These include driver training, purchasing more fuel efficient vehicles, use of delivery optimisation software and shared user schemes.
The nature of our Pharmaceutical Wholesale Division requires that we maintain and use relatively large fleets of vehicles to enable the high level of service we provide to our pharmacy customers. Our Health & Beauty Division requires fewer vehicles however, growth in local delivery of prescriptions supplied to care homes and direct to patient’s homes will increase the level of vehicle usage. Rail usage is low due to the nature of our business activities.
The Pharmaceutical Wholesale Division operates large vehicle fleets and drives a significant number of road kilometres, which reflects both its business model and the importance of its role in delivering healthcare products and services to the community.
By division
for the year ended 31 March
| 2011*
tonnes
| 2010
tonnes
|
| Health & Beauty | 40,393 | 41,005 |
| Pharmaceutical Wholesale | 60,952 | 63,624 |
| Contract Manufacturing & Corporate | 2,069 | 1,697 |
| 103,414 | 106,326 |
An appreciation of the importance of preserving energy and fuel has been second nature to Boots UK since its inception. Today, innovation remains just as important to ensure that the vehicles used save both energy and fuel and the Multi-deck Urban Delivery trailer (MUD) is one example of how we are reducing the environmental impacts of product delivery.
Boots UK recognised that an opportunity existed to further reduce road kilometres when transporting goods from Regional Cross Dock Centres to our stores. There are many limitations of length, width, height and turning space which restrict access to store yards. Consequently we have used a larger number of smaller rigid vehicles which are less efficient.
This year we have continued the roll out of our MUD trailer concept and now have a fleet of 11 vehicles, which will generate an estimated annual saving of nearly half a million kilometres and approximately 350 tonnes of CO2.
The MUD truck was assessed for its operational effectiveness at our Basingstoke Cross Dock Centre and went on to win the Innovation award at the Business in the Community East Midlands Carbon Positive awards in 2010.
The first stage of an expanded Group-wide video conferencing initiative has been launched as a practical alternative to business travel, limiting travel costs and carbon footprint across the Group, increasing time efficiency and enhancing internal communications.
Boots UK has taken a number of positive steps to reduce the volume of goods imported into the UK using airfreight. Airfreight is used predominantly in response to either delayed ocean freight or to service unforecast demand. It is an environmentally damaging and expensive method of transport which produces approximately 30 times more CO2 than containerised ocean freight (per unit shipped).
A cross-functional group led by the supply-chain team developed a control process to minimise airfreight usage without adversely affecting the business. The authorisation process, combining challenge and alternative solutions, was implemented in July 2009 to coincide with our busiest period for airfreighting.
The result of implementing the project in 2009/10 was a reduction of over 60% year on year in chargeable weight of stock moved by airfreight. Other factors that contributed to this reduction included an initiative to reduce the composition of gift sets and related packaging.
The carbon footprint generated by employee business travel has slightly increased year on year, reflecting overall growth in the size of the Group during this period.
By type
for the year ended 31 March
| 2011
tonnes*
| 2010
tonnes
|
| Road | 15,748 | 15,095 |
| Air | 3,411 | 2,988 |
| Rail | 488 | 491 |
| 19,647 | 18,574 |
Over the year, we have seen an increase in road and air travel, primarily due to improved reporting of road travel and increases in air travel (specifically medium and long haul air journeys), reflecting new business acquisitions and growth in our global operations.
Notwithstanding the factors above, business travel has reduced across many of our businesses, with the increased use across the Group of webcasting and video-conferencing facilities.
Across the Group, the majority of our businesses have continued to upgrade company vehicles to those which are more fuel efficient. In The Netherlands, both our Health & Beauty and our Pharmaceutical Wholesale businesses reduced their carbon footprint by training drivers to use their vehicles more efficiently to cut down on the amount of fuel used on journeys.
By length of haul
for the year ended 31 March
| 2011*
'000km
| 2010
'000km |
| Short haul | 4,094 | 4,839 |
| Medium haul | 10,422 | 8,239 |
| Long haul | 9,498 | 7,779 |
| 24,014 | 20,857 |
By division
For the year ended 31 March
| 2011*
tonnes
| 2010
tonnes
|
| Health & Beauty | 12,207 | 10,995 |
| Pharmaceutical Wholesale | 6,729 | 6,890 |
| Contract Manufacturing & Corporate | 711 | 689 |
| 19,647 | 18,574 |
By division
For the year ended 31 March
| 2011*
tonnes
| 2010
tonnes
|
| Health & Beauty | 163 | 146 |
| Pharmaceutical Wholesale | 486 | 481 |
| Contract Manufacturing & Corporate | 359 | 340 |
| 217 | 203 |
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