Oriflame’s overall supply strategy is to move the sourcing of products and printing of catalogues closer to the current and future Group Distribution Centre facilities and major markets. The aim is to improve transportation routes and thereby reduce greenhouse gas emissions and energy consumption. Regional sourcing activities in the CIS region have during 2012 helped reduce the distances shipped by almost one third for these markets.
Oriflame works to limit air shipments to the greatest ex tent possible and products shipped by air decreased by 30 percent during 2012. The vast majority of the Company’s shipments are conducted by sea and truck freight. The packaging and loading routines for ship containers and trucks are continuously being reviewed to optimise space usage, thereby reducing energy consumption.
During 2012, utilisation was further improved by 11 percent in ship containers and 16 percent in trucks compared to 2011. Compared with our 2010 baseline, the figures represent a total improvement of 36 percent for ship containers, and 28 percent for trucks.
Oriflame aims to select road carriers utilising Euro 4, 5 and 6 standard trucks wherever possible, thus reducing par ticle emissions. During 2012, approximately 46 percent of Oriflame’s total road transpor tation was conducted by Euro 4, 5 or 6 cer tified trucks (up from 35 percent during 2011). A new requirement for road carriers is to use only vehicles less than 8 years old in order to further limit impact.