Strategic purchasing to reduce air freight

Various affiliate companies of the Otto Group purchase some of their merchandise in geographically distant procurement markets such as the Far East. Strategic ordering enables short-term demand peaks to be avoided that would otherwise have to be solved using climate-harmful air freight transportation.

Brief description

Various affiliate companies of the Otto Group purchase some of their merchandise in geographically distant procurement markets such as the Far East. Different modes of transport by sea, air and rail are used to transport these goods.

Air freight transportation can be steadily reduced by optimising the decision processes concerning product ranges and transforming them into predominantly strategic ordering behaviour that is able to absorb short-term demand peaks. The prerequisite for this is that longer journey times by seagoing ship or rail do not result in supply bottlenecks.

The project partner in this case is Hermes Germany GmbH (an Otto Group affiliate company).

Greenhouse gas reduction potential

  • Air freight can be systematically reduced by specifically avoiding transportation

Transferability & challenges

  • Can be transferred to virtually any company

Requirements for third parties

  • Long-term and differentiated agreements with suppliers

Do you have any further questions about this best practice?

We’ll be happy to help you at logistik@2grad.org.

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