Anglo-Dutch consumer goods giant Unilever is restructuring its 2 million m[sup]2[/sup] European warehouse network to save on transport costs. 'We are bringing together our operations in the countries where we are active to make them more cost-efficient,' Martin Whitcombe, customers logistics director Europe at Unilever, said during the Global Distribution Strategy conference in Amsterdam last week.

Anglo-Dutch consumer goods giant Unilever is restructuring its 2 million m2 European warehouse network to save on transport costs. 'We are bringing together our operations in the countries where we are active to make them more cost-efficient,' Martin Whitcombe, customers logistics director Europe at Unilever, said during the Global Distribution Strategy conference in Amsterdam last week.

'We have reduced the number of warehouses by 35% from 570 in 2004 to 370 at present,' he added. 'This was helped by the fall of traditional barriers: we have combined our Spanish logistics facilities for personal care and frozen products, reducing costs by about 5%.' The company's restructuring plan is in the final stages in the Benelux, Germany, Switzerland, and Austria. The company starts implementation of the plan this month in Spain, Romania, Bulgaria, Serbia, and Greece.

Whitcombe said the decision is also driven by environmental concerns. The company is targeting a 15% reduction of iCO2 emission and a 10% reduction of costs. 'Warehousing has been identified as a potentially large contributor to the reduction of CO2 emissions. With oil prices of $150 per barrel, we need to start rethinking our warehouse network locations and the relation with our retailers. This means that Tesco, one of our partners, might start coming once a week in the future instead of once a day.' As a result of the shift in warehouse allocations, the company said that its logistics facilities are getting bigger, from 30,000 m2 - 50,000 m2 three years ago to 50,000 - 100,000 m2 now.

Whitcombe said that he expected logistics companies will be put under a lot of pressure by governments to increase energy efficiency and to reduce the CO2 emissions from properties and transportation. 'As the awareness of environmental issues grows, it is only a matter of time before governments introduce new taxes for the logistics sector.'

Unilever reported EUR 15bn in European sales last year, accounting for 38% of its global business.