Pepkor’s logistics infrastructure is the lifeline of the business and is a significant part of our ability to deliver to our customers. Due to our diversified product ranges across our business segments, different distribution methods are in place. These present distinctive operational differences with respect to product deliveries and transport.

The highest volume of the group’s logistics functions resides in the CGM segment. Pepkor Logistics (PKL) manages most of the logistics covering this segment, which accounts for a large portion of Scope 3 emissions (upstream transportation). Our suppliers provide the trucks and drivers, while PKL manages customer relationships and efficiencies. Innovative technology is used to drive efficiencies in aspects that include driver behaviour, route optimisation and time management.

Over the years, numerous efficiency projects have yielded substantial savings in fuel used in the group’s distribution network. While store footprint expansion continues to increase the group’s total fuel usage, the litres of fuel used to deliver a single cubic metre of stock reduced annually by 2% on average over the past six years – enabling the group to deliver more for less. These optimisation efforts have also reduced the group’s annual CO2e intensities per cube by 2% on average since 2017.

Initiatives include:

Route optimisation in CGM segment
Owing to the centralisation of our logistics function, fuel is saved because one truck will deliver the stock of various brands in a single location.

Reverse logistics for PAXI
By making use of the existing distribution infrastructure, the group could add the PAXI service while limiting additional costs and excluding additional emissions.

Real-time performance measures are in place and efficiencies are managed on a trip, truck and driver level.