Eco-friendly Logistics & Relevant Centers
Keeping up with the rapidly changing environment, LG H&H has implemented the gradual integration of key functional and regional distribution centers based on the integration plan to enhance the operation efficiency. We have reorganized and integrated the functions of key centers to efficiently systematize our logistics network. In addition, we have promoted the use of larger transport vehicles with the cooperation of transport suppliers, thus reducing fuel consumption and GHG emissions. We also decided to expand the direct distribution from OEM production centers to streamline the transport routes of cosmetics and household goods. For beverage products, we reduced the transport stages by promoting the direct distribution from key producing areas to dealers. This enabled us to reduce distribution costs and GHG emissions.
Furthermore, we prioritized the safety of products in the process of packaging, transport, and unloading, while focusing all our capacities on increasing the efficiency of transport and delivery and reducing the transport routes and lead time, thereby minimizing our effect on the environment. We will continue to reform the logistics process, optimize key logistics centers, and enhance the efficiency of transport and delivery to reinforce our eco-friendly logistics system.
Our business site in Cheonan has been equipped with the temperature and pest control facilities by expanding and moving the warehouse for Babience products. We have also implemented the high-quality logistics management by applying the management standards from storage to logistics customized for the characteristics of products. In the beverage division in 2016, we focused on carrying out the Back to the Basic campaign as part of the activities for improving the logistics environment and protection of products. The management of products and logistics centers and compliance with safety rules help us reinforce the system for product safety enhancement.
Logistics Cost Reduction
We secure competitiveness in logistics by integrating the operation of logistics bases
and increasing the efficiency of transport and delivery for rational logistics.
In addition, the synergy of the integrated logistics bases
and the shortened transport routes have reduced environmental load,
improving the efficiency of our ecofriendly logistics system