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Annual Report 2014

Logistics


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The care which company takes in its logistics operation involves all the stages of the process, from the systems and employees in the separation area, to the vehicle fleet and drivers who travel thousands of kilometers to ensure that the supermarkets are properly supplied. Walmart employs leading-edge technology in the operation of its distribution centers and the control of its vehicle fleet, resulting in increased speed and efficiency. It also concerns itself with social and environmental questions, principally with respect to greenhouse gas emissions, and is always looking at ways of reducing its impact.









Reducing greenhouse gas emissions is a mission that is linked to Walmart’s sustainability platforms both in Brazil and around the world. In the area of logistics, this concern is fundamental. In 2013, despite the fact that the fleet size was reduced by 3.2%, Walmart's delivery trucks travelled a total of 55.7 million kilometers. Of this, 36 million were travelled by vehicles that use sustainable solutions – from the most complex, such as the use of efficient engines such as the Euro 5, to the simplest, such as the fitting of air deflectors or using the bio-diesel option for trucks.

Thus, as with all of its operations, Walmart always aims to involve the whole supply chain, working together to create an increasingly lower environmental impact. Following this strategy, the company contacted its suppliers to apply the backhaul principle. In practice, this operation consists of route planning and co-ordination so that truckloads are used to the maximum. The concept is simple: after unloading their merchandise, instead of trucks returning empty, they drive on to other suppliers who make use of the return journey to take products from industries whose units are close to the end-destination. The backhaul program alone represented a saving of 111,700 liters of fuel, thus avoiding the emission of approximately 300 tons of CO2.

For the sixth year running, in 2013, Walmart held the Walmart Brasil Forum for Sustainability in Transport, an event which brings together suppliers, researchers and government bodies, who together identify solutions for reducing the impact of vehicle fleet movement. An important step in this regards was taken last year in increasing the number of trucks that use the Euro 5 engine, which operates with minimal nitrous oxide (NOx) and particle emissions. With this new engine, NOx emissions were reduced from 32% to 13% in comparison with the Euro 3 engine. While the emission of particles left over from the fuel burning process, fell to 2%. Furthermore, this change resulted in an average fuel saving of 5%, also contributing to cutting CO2 emissions.

In 2013 Walmart began the implementation of its Global Logistics System, principally aimed at the distribution centers. The system aims to increase the productivity of the order separation operations, also known as picking. This initiative introduced voice picking technology in three distribution centers, whereby operators use headsets to keep their hands free, which raises their efficiency in the carrying out of tasks. The system uses specific numbers which permits control of the locations within the distribution centers in order to confirm that the separated lots are clearly marked. The system also monitors staff movement and sets the routes to be travelled within the warehouses, thus dispensing with the use of identification tags.