Many businesses have come to realize the benefits of lowering their carbon emissions. Not only is this practice good for the environment, but many companies also see increased profits as a result of their efforts. Ocean Spray Cranberries, for instance, cut delivery-related emissions by 20 percent and costs by 40 percent. Take a look at how Ocean Spray made these changes and what inspired the company to take them on.
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Ocean Spray Participates in the EDF’s Climate Corps Fellowship Program
Ocean Spray had the opportunity to participate in the Environmental Defense Fund’s (EDF) Climate Corps program, in which an outside researcher analyzes a company’s logistics network and looks for optimization opportunities. During its time in the green freight fellowship program, Ocean Spray received insight on sustainability from research fellow Eric Chappell.
This is just one example of Ocean Spray’s continual work to improve processes while lowering its carbon footprint, both part of the company culture. Keli Sanford, Ocean Spray’s Logistics Manager, said, “Ocean Spray has long sought to capture efficiencies, drive down costs, and reduce the carbon impact of our complex distribution network… we knew that the Climate Corps program would underscore the important work that has already been done, while bringing fresh ideas and thinking into the process.”
Ocean Spray Switches Distribution to Rail
In addition to small logistics changes to improve sustainability, Ocean Spray has also transformed its distribution channels. Ocean Spray is one of the largest produce juice drink companies in North America. In 2011, Ocean Spray opened a new distribution center in Florida to meet growing demand for its products in the Southeast. This reduced the number of trucks that Ocean Spray needed to distribute its products, which led to a reduction in carbon emissions.
After opening its new distribution center, Ocean Spray also discovered from its logistics provider, Wheels Clipper, that another juice company was moving empty rail cars along the CSX railroad as back haul. This presented an opportunity for Ocean Spray to partner in its distribution route. Most of Ocean Spray’s product was coming from New Jersey by freight truck. To be a good partner, Ocean Spray had to triple the size of its shipments to accommodate the larger rail cars.
It took one year for Ocean Spray to shift 80 percent of its freight distribution to rail, but this move ultimately saved the company 40 percent on transportation costs. During this time, the company also saw a 68 percent reduction in carbon emissions.
Ocean Spray can teach other businesses a lot as the result of its success. Even though changing its distribution route to rail saved money, it also had the potential downside of working with a juice drink competitor. Ocean Spray made the smart move anyway, due to the amount of money and emissions it would be able to save. Other companies should follow this lead by analyzing their supply chains and continually looking for areas that need improvement. Like Ocean Spray, businesses in many sectors will find enhancements that can lead to both minor and major changes. [/show]
