PSC LIVE: Sustainability – Kimberly Clark Keynote
At Procurement & Supply Chain LIVE: Sustainability, James Hallam, Global Climate Leader at Kimberly-Clark, took to the stage to share insights from Kimberly-Clark’s first electric truck pilot.
In his session, ‘The journey towards HGV electrification in Europe, a shipper’s perspective’, James provided a detailed look at the challenges, solutions and lessons learned from integrating battery electric heavy goods vehicles (HGVs) into supply chains.
Setting the stage for electric HGVs
Kimberly-Clark, a global personal care products company, has set ambitious sustainability goals, including a 50% reduction in Scope 1 and 2 carbon emissions and a 20% reduction in Scope 3 by 2030. However, for its logistics operations specifically, the company aims to cut emissions by 65% from its 2015 baseline.
James explained that electrifying transport is a crucial part of the company’s decarbonisation strategy.
“Eliminating emissions is better than just reducing them,” he said. “But electrification isn’t a one-size-fits-all solution – it depends on the route, available infrastructure and energy sources.”
After analysing its European transport network, Kimberly-Clark selected the Czech Republic for its first electric truck pilot. The chosen route – between its plant in Jaroměř and a distribution centre in Dobré – spans 36km and operates 15 deliveries per day.
Challenges in cost and energy efficiency
James detailed the unexpected findings that almost derailed the pilot. Initial calculations showed that electrification could actually increase emissions if the trucks were powered by the standard Czech electricity grid.
“We were shocked to find that in some cases, an electric truck using grid power would emit more carbon than a diesel truck,” he said.
To solve this, Kimberly-Clark leveraged its renewable energy investments.
“We’ve built wind and solar farms across Europe, and we were able to use those renewable energy credits to power our trucks,” James explained.
However, the financial viability of electric HGVs remained a significant hurdle. The initial proposal from their logistics partner, Maersk, showed a dramatic cost increase compared to diesel.
“We expected higher leasing costs, but what really surprised us was that charging costs were projected to be higher than diesel fuel,” James noted.
Further analysis revealed that the logistics partner had assumed reliance on public charging infrastructure at €0.90 per kWh. By contrast, Kimberly-Clark’s own energy costs at its facility were between €0.10 and €0.15 per kWh. Shifting to private charging significantly reduced costs and made the project more viable.
Additionally, Maersk had based its calculations on fully loaded trucks (20–25 tonnes), whereas Kimberly-Clark’s actual loads were much lighter (8–10 tonnes). Adjusting for this improved the vehicle’s energy efficiency by 20%, further closing the cost gap.
Strategic solutions for cost parity
With these adjustments, Kimberly-Clark refined its approach to make electric trucks financially viable.
- Optimising leasing terms – The team debated extending the lease from three to five years to reduce per-trip costs. However, with electric truck prices expected to fall, a longer lease was deemed risky.
- Maximising vehicle use – Instead of operating a single driver shift, the company moved to a double-shift model, ensuring that the truck remained in use for a greater portion of the day. This increased annual mileage from 65,000km to 130,000km, significantly improving cost efficiency.
- Switching to a fixed monthly payment model – Rather than paying per trip, Kimberly-Clark negotiated a fixed lease cost, sharing the utilisation risk with Maersk.
“If we run six or seven trips per day, we save money. If we only manage four or five, it costs more,” James said.
These strategies brought the cost per trip in line with diesel, making electrification a commercially viable option.
Early results and future plans
The pilot launched just weeks before the event, and early data has already highlighted key learnings. While the initial plan was for six trips per day, the truck has averaged five due to delays in installing the permanent charging station.
The temporary mobile charger has a maximum output of 40kW, significantly slower than the planned 120kW system.
“We expect to hit six or even seven trips per day once the full charger is operational,” James said. “But already, the data is showing that cost parity is achievable if you take the right approach.”
Looking ahead, Kimberly-Clark is expanding its electrification efforts. The company has identified 15 key sites for charging infrastructure and is exploring additional routes in the UK, France, Germany and Italy.
James closed with a vision for 2030, where battery electric vehicles (BEVs) become the default choice rather than being evaluated against diesel alternatives.
“By then, public charging will hopefully be more affordable, and our infrastructure investments will help accelerate adoption across our supply chain,” he said.
Key takeaways for businesses considering electric HGVs
James summarised several crucial lessons for companies looking to integrate electric HGVs:
- Cost parity is achievable but requires rethinking traditional transport models.
- Private charging infrastructure is critical to making electric transport financially viable.
- Maximising vehicle utilisation through double-shifting or other strategies is essential.
- Renewable energy sourcing is a must to ensure true carbon reductions.
- Pilot programmes must be scalable rather than one-off experiments.
Kimberly-Clark’s approach demonstrates how businesses can successfully transition to electric HGVs by optimising costs, leveraging renewable energy and working closely with logistics partners.
As James concluded, “The goal is to make electric the default – not the exception.”
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