Production & Logistics
Improving our performance, reducing resource consumption
Henkel has production sites in 57 countries. We also have administration, research and marketing and sales sites, warehouses, and logistics centers in many countries. As a local employer and contractor, we are thus able to stimulate the economic development of various regions. Efficient and modern production sites are a prerequisite for the production of high-quality brands and technologies. The continuous improvement of our processes and site structures, as well as the reduction of resource consumption and environmental burdens, are an important part of our promise of quality. This includes the worldwide transfer of knowledge and new technologies.
Company-wide steering instruments and regional action programs
Comprehensive analyses and simulations are the basis for company-wide programs that increase productivity, quality and safety, while simultaneously reducing resource consumption, waste, and maintenance costs. The diversity of our products makes varying demands on our production processes. For example, fundamentally different processes are needed to make tile adhesives, household cleaners, and skin creams, and these processes also differ widely in terms of their water and energy consumption. The experience and activities of our individual plants are therefore channeled into the company-wide efficiency programs. In fact, process-specific ideas and the creativity of employees often make major contributions to the achievement of our objectives.
Since 2006, we have systematically carried out analyses of the processes in our eight cosmetics plants as part of our Total Productive Management Plus program. The aim is to identify losses in the various production processes and the supply chain, so that we can continuously increase added value. On the basis of detailed analyses which were carried out at the start of the program, our sites specify actions and quantified targets each year. To achieve these objectives, we rely on the process-specific experience and the ideas and creativity of our employees. To involve all employees as unbureaucratically as possible in the process of continuous improvement, “blue cards” have been placed at clearly visible locations in all cosmetics plants. Our employees can use these cards to submit suggestions for improving processes.
Logistics planning for different products
Taking responsibility throughout the value chain includes the optimization of the transport of our products. Throughout Henkel, we are working to simplify our logistics structures and develop efficient and environmentally compatible logistics concepts. In most cases, our logistics planning is tailored to the nature of the final products to be transported. For relatively bulky products, we reduce the transport mileage and the resulting environmental burden by maintaining regional production sites. This applies especially to our laundry detergents and household cleaners, and to some cosmetics and adhesives. More compact products with a low specific weight make fewer demands on transport, so we produce them centrally in large quantities wherever possible. Our instant adhesives, for example, are produced at just a few sites worldwide.
New requirements on our transport service providers
Worldwide, more than 90 percent of the transportation of our products from the production site to the warehouse, and from the warehouse to the customer, is now carried out by external logistics companies. It is therefore important for us to consider efficiency and environmental performance when we select our transport partners. In 2010, we defined new criteria for systematically assessing providers of logistical services in the context of “invitation to tender” processes. These include the definition of energy-saving targets, measures for modernizing vehicle fleets, and investments in programs for optimizing routes and determining emissions. Requesting information from companies about these criteria emphasizes our expectations in regard to environmentally responsible transport concepts, and we take them into account when we place new logistics orders.
