Maintaining sustainability and creating value with DKSH

Progress in circular economic development in recent years in Vietnam underscores the need for companies to join forces in making a positive environmental impact while tapping into a growing sector. By embracing sustainable practices and collaborating effectively, companies can improve environmental outcomes and position themselves at the forefront of the circular economy.

The circular economy in the supply chain focuses on reducing waste, reusing materials, and improving resource efficiency throughout the product life-cycle – from raw material sourcing to manufacturing, distribution, and end-of-life management. Understanding the needs of the environment and demands of the market, DKSH has applied sustainability initiatives to collaborate with the community in driving the circular economy in Vietnam and the global supply chain.

Maintaining sustainability and creating value with DKSH

DELIVERING SUSTAINABLE GROWTH

The circular economy in the supply chain focuses on reducing waste, reusing materials, and improving resource efficiency throughout the product life cycle – from raw material sourcing to manufacturing, distribution, and end-of-life management. Understanding the needs of the environment and the demands of the market, market expansion specialists DKSH has applied sustainability initiatives to collaborate with the community in driving the circular economy in Vietnam and the global supply chain.

With almost 160 years of global experience and operations in 36 markets worldwide, DKSH embraces sustainability as one of the company’s core values and central to its corporate strategy and governance.

The company has played an important role in providing sustainable supply chain management services for many clients. Owning a capillary distribution network with eight distribution centres and cross docks nationwide, DKSH handles thousands of transactions daily, ensuring constant accessibility to high-quality and life-saving products across Vietnam.

Understanding the importance of sustainability, especially in supply chain management, DKSH has been implementing various group-wide and local initiatives.

Aligned with the group’s sustainability objectives to become climate-neutral in own operations by 2030 globally, the company consistently pursues a low-carbon strategy. It also ensures its distribution activities maintain as small a carbon footprint as possible. This requires extensive efforts in strategic delivery scheduling to maximise delivery volume in every vehicle on every route while minimising energy usage for each delivery.

The company adds fuel efficiency as one of the key criteria when selecting a transport service provider, alongside the usual standards for quality, reliability, and cost, and it encourages its suppliers to use environmentally-friendly vehicles and renewable fuels in their transport. To achieve the objective of making the value chains more sustainable, DKSH sets standards for responsible procurement, especially for transport service partners.

A TRUSTED PARTNER IN WASTE MANAGEMENT

As a service provider, DKSH cannot influence the packaging used for clients’ products. Therefore, the company aims to minimise packaging waste in logistics. To make its value chains more sustainable, the company is addressing environmental concerns while contributing to sustainability.

As a result of reducing nearly 70 per cent of waste compared to last year in the processes of packaging and storage, DKSH is accelerating its journey towards responsible growth by recycling and reusing carton boxes in transportation, replacing plastic wrap with elastic cords in storage, and implementing many other solutions at all locations.

With the deployment of five carton-shredding machines to recycle used carton boxes, DKSH has achieved a remarkable year-to-date return on investment of over 70 per cent. These machines shred used carton boxes, which replace plastic fillers in delivery packaging and help conserve resources while minimising waste.

DKSH has already made significant strides in reducing waste by replacing over 84,000 kilogrammes of non-biodegradable plastic annually with biodegradable alternatives. This shift exemplifies the company’s proactive approach to minimising environmental impact while maintaining operational efficiency.

Additionally, in storage and transportation on pallets, the company is accelerating the replacement of stretch film with elastic. This initiative is currently being tested at Vietnam-Singapore Industrial Park 2’s distribution centre for 10,000 pallets, resulting in a reduction of 19.2 tonnes of stretch film per year. In addition to the environmental benefits, it has resulted in a 67 per cent cost reduction.

DKSH’s efforts go beyond complying with regulations: it aims to influence business operations in Vietnam. By reducing plastic waste, optimising packaging, and promoting supply chain sustainability, DKSH is contributing to a more sustainable business environment.

DKSH empowers Vietnamese student innovations DKSH Vietnam in collaboration with Ho Chi Minh City Television CafeTek and the authorities of District 11 has successfully organised the finale of “The Next Innovator Contest 2024” to recognise 20 excellent innovative ideas proposed by young talented students aged 9 to 14.

DKSH and Ortoalresa to partner in Vietnam DKSH Business Unit Technology announced on July 26 it is entering into a partnership with Ortoalresa, a manufacturer of innovative centrifugation solutions, to distribute its wide range of products in Vietnam.