May 17, 2020

Tesco Big Price Drop helped by supply chain management

Supply Chain Digital
Supply Chain Management
Tesco
Tesco
Freddie Pierce
2 min
Smart supply chain management plays a big role in Tesco’s Big Price Drop program
Smart supply chain management can equate to huge savings. Worldwide grocery and retail chain Tesco found that out first hand, and is passing its supply...

Smart supply chain management can equate to huge savings. Worldwide grocery and retail chain Tesco found that out first hand, and is passing its supply chain savings onto its customers.

The United Kingdom-based company is set to launch its biggest price-cutting campaign in a 25 years, as Tesco is making plans to slash more than £500 million on more than 3,000 of its products. Supply Chain strategy played a huge role in funding this aggressive strategy, which is being called the Big Price Drop campaign.

The details of the supply chain strategy are pretty vague at this early juncture, but the Big Price Drop is aiming to attract new shoppers to the business. Tesco isn’t one to shy away from innovative strategies like this, as the company has rolled out Double Points and Every Day Low Price plans in the recent past.

Tesco is dropping some of its Clubcard rewards programs to help finance the newest supply chain strategy.

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UK CEO Richard Brasher wants Tesco to focus “more on the individual prices of products,” and is hoping the Big Price Drop is a step in the right direction.

“We're giving customers a more straightforward shop - reducing the number of promotions and putting the emphasis on clear reliable savings,” Brasher said.

Tesco operates more than 2,000 stores around the world, with most of them located near the company’s headquarters in the UK.

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Jun 24, 2021

Kuehne+Nagel cuts carbon footprint by 70% for Honda China

Kuehne+Nagel
CarbonNeutral
supplychain
Logistics
2 min
Road-to-rail logistics solution will reduce carbon emissions at the automaker by 70%, stripping 16,000 tonnes of CO2 from its supply chain

Around 16,000 tonnes of CO2 has been cut from supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel

The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018. 

KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management. 

"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive. 

After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected too trip 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total. 

"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”

Kuehne+Nagel’s Net Zero Carbon programme 
 

Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners. 

Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”. 

As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030. 
 

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