We are evaluating our distribution systems to identify ways to reduce scope 3 transportation emissions and prioritize the use of expanding consolidated shipping. In line with our emissions reduction goal, we are reviewing our entire distribution model to identify solutions that can be scaled across our sites and brands while aligning with customer expectations and demands. For example, QVC, HSN and Zulily consolidate customer orders where possible to reduce packaging and the number of trips required.
Here is how our shipping emissions stacked up in 2020:
Integrating HSN and QVC US Fulfillment Networks
In the U.S. we are making several changes to our fulfillment operations to enhance delivery speed and lower operating costs, as part of a multi-year network optimization strategy to restructure and integrate our HSN and QVC US Fulfillment Networks. This includes:
- Combining HSN and QVC centers into integrated fulfillment centers carrying full product assortments of both brands.
- Relocating some centers to reduce delivery time to customers and lower freight expenses.
- Upgrading fulfillment technologies, including deploying our proprietary Warehouse Management System (WMS) to improve speed and efficiency of customer delivery across all brands.
The first step in this evolution was the opening of our state-of-the-art fulfillment center in Bethlehem, PA, in 2019 that handles both QVC and HSN product and fulfills approximately 25 percent of network volume. As our network optimization strategy continues, we expect that we’ll be able to further reduce waste, decrease packaging and improve upon our cost discipline.