UPS Produce Options For Reducing Carbon Footprint

There is no industry safe from the discussion on how to reduce carbon emissions and make their mark on the campaign to improve the state of the world’s energy usage. UPS have made their suggestion for improvements via a support for natural gas.

“United Parcel Service Inc. (UPS), the world’s largest package-delivery company, said it can save 40 percent in fuel costs by running its long-haul semi-tractor trailer fleet on natural gas instead of gasoline or diesel.

UPS is reducing gasoline and diesel use to cut emissions and operate more efficiently, Scott Wicker, the Atlanta-based company’s chief sustainability officer, said in an interview today. The company wants to reach 1 billion miles (1.62 billion kilometers) driven by alternative or advanced-technology vehicles by 2017, up from a previous target of around 400 million, it said today in its sustainability report.

‘It’s really the vehicles that are on the freeways that burn the most fuel,’ Wicker said. ‘Right now natural gas is the big game changer.’

Earlier this year, UPS said it would buy almost 1,000 liquefied natural gas, or LNG, tractors in the next two years to boost its fleet of 2,700 alternative fuel and advanced-technology vehicles. It’s adding LNG refueling infrastructure with partners in the U.S. Southwest and buying electric trucks, which work best in densely populated areas, Wicker said.

UPS has been cutting costs in recent quarters by trimming flying, retiring older vehicles and rolling out a system to adjust drivers’ routes in real-time. The company reported a 4 percent slip in second-quarter net revenue on July 23.

The efforts to make the company more sustainable help UPS’s bottom line, saving about $50 million for each mile saved a year, Wicker said. ‘We only do them when we have a return on investment that’s acceptable to us,’ Wicker said.

UPS has a fleet of more than 96,000 vehicles, including more than 2,600 that run on alternative fuel, according to its website.’”

This article was originally sourced from www.bloomberg.com.

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DHL Land Three Year Hankook Deal

Logistics company DHL have been granted a three year contract to manage Hankook’s UK based warehouses. Two of the warehouses will be in Daventry and DHL will be expected to take care of the receipt, check, stock and selection of all Hankook’s products; predominantly tyres.

“DHL Supply Chain has been awarded a three year contract to manage Hankook Tyres’ UK warehousing operations. Under the new agreement DHL has assumed responsibility for the receipt, check and stock replenishment of inbound tyre deliveries, plus picking for next day distribution from the South Korean manufacturer’s facilities in Daventry, Northamptonshire.

Hankook’s market share in the UK has increased significantly in recent years, requiring the tyre manufacturer to re-engineer its supply chain operations. In response to growing demand, a lease has been agreed on a warehouse adjacent to the company’s existing 85,000 sq. ft. facility, creating an additional 140,000 sq. ft. of space to support the company’s continued expansion.

While retaining control of the real estate, Hankook turned to DHL for strategic guidance on how to optimise its warehouse processes. A strong relationship has developed between the two organisations since 2008, when DHL was first awarded the contract to distribute Hankook’s tyres UK-wide through its collaborative tyre network. Since then, consistently excellent performance and DHL’s proven track record in tyre warehousing led to the new opportunity.

Taking time to understand how to drive significant improvements in the warehouse operations, DHL worked with Hankook to develop training, process design and operational changes to cope with increased business volumes, while improving customer service and cost effectiveness.

Within eight weeks, Hankook was able to push back its sales order cut off time from 15:00 to 17:30, enabling orders to be placed later for next day delivery, while the introduction of new processes has significantly increased pick accuracy. Increased levels of customer service performance are helping Hankook achieve higher sales and DHL has introduced two working shifts to manage the surge in demand.

Tony Lee, Managing Director at Hankook Tyre UK Ltd, said: ‘DHL has always provided a good distribution service for Hankook - something that we wanted to maintain and improve as our facilities expanded. Since DHL took over the management of our warehouse, the distribution service has been boosted in terms of handling accuracy, operational proficiency and flexibility.’

‘We have been able to provide our customers with an enhanced service, which we plan to improve further with the help of DHL. As a premium tyre manufacturer, providing a top-class logistics service is central to our current and future operations and is something that we anticipate will play a key role in Hankook's growth.’

Jim Marsh, Head of Tyres, DHL Supply Chain added: ‘I’m delighted that Hankook has chosen to outsource this important operation to DHL. The new warehousing operation complements DHL’s existing distribution service and will provide further opportunities for DHL to integrate and fully optimise Hankook’s logistics operations.’”

DHL’s services are available to both personal and business customers, so if you are interested in entering into a contract with them or simply using their services for a one off delivery – contact their customer services department. Click Here for all necessary contact details. This article was originally printed on the DHL website.