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Corporate Reporting 2015

Henkel Corporate Reporting 2015

More Henkel Corporate Reporting 2015

Sustainability Report 2015

Henkel Sustainability Report 2015

Facts and Figures 2015

Henkel Facts and Figures 2015

Corporate Report 2015

Henkel Corporate Report 2015

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Sustainability Report 2015

Supply chain

Every minute, the plant in Wassertrüdingen in Germany fills up to 350 bottles of shower gel from the Fa body care brand. Diana Rathgeb, a deputy shift supervisor who is also responsible for the line, checks the product and packaging quality. Thanks to the highly efficient cleaning method applied between filling operations, this line saves more than 90 percent wastewater per cleaning cycle.

A look back at our targets for the five-year period from 2011 to 2015 shows that the continuous improvements made and the simplification of our purchasing, production and logistics processes have put us in a good position to become three times more efficient by 2030.

Achieving more with less

We have merged the production, logistics and purchasing activities for all of our business units into a single global supply chain organization. We are working to continuously improve efficiency in all areas while maintaining the high quality of our products.

The production site in Wassertrüdingen, Germany, produces around one-fifth of the products in the Beauty Care portfolio and serves the entire European market – up to 3.3 million units are filled here every day. Since cleaning of the filling lines is a main generator of wastewater, we use steam instead of hot water to clean and disinfect the equipment. This has enabled us to reduce the wastewater volume per cleaning cycle by more than 90 percent, thus avoiding around 850 cubic meters of wastewater per line every year. Another sustainability example is the bundling of single product bottles with film wrapping. This is normally done by shrink wrapping under the application of heat. A new machine now achieves the same effect by mechanically stretching the film, which saves up to 70,000 kilowatt hours of electric power per year.

By implementing many such measures, this site has been able to reduce its wastewater footprint by more than 65 percent and its electricity consumption by more than 50 percent per production unit from 2005 to 2015. All of this contributes to achieving our “Factor 3” goal.

Three questions about Henkel’s supply chain

Henkel has launched its global supply chain organization under the name of ONE!GSC Horizon. How can this change contribute to more sustainability?

Establishing a unified global supply chain is one of our most important strategic projects. It involves a fundamental realignment of our production, logistics and purchasing processes across all business units and functions. The new organization will help us to standardize and harmonize our processes worldwide. It will increase our competitiveness – through faster workflows, better flow of information, more transparency, and greater efficiency overall. This increase in efficiency also plays a key role in reaching our sustainability goals.

Where do you see additional potential for improving efficiency and sustainability in production?

In 2015, we again introduced many measures that reduce the environmental footprint of our production operations and boost our efficiency. We strive constantly at our production sites to use even less energy and water and decrease our waste volume, all while still maintaining high quality and continuously improving occupational safety. And we are succeeding: We reached all of the targets we had set ourselves for 2015 in these areas.

Standardization of processes also plays a central role in Henkel’s purchasing organization.

That’s correct. In our purchasing initiative “Together for Sustainability,” or TfS, the main objective is to harmonize and simplify increasingly complex, global supplier management processes – not only for the member companies, but also for our shared suppliers. The membership of TfS has already tripled since the initiative was launched in 2011. That shows that the idea works.

Carsten Knobel

Executive Vice President Finance (CFO) / Purchasing / Integrated Business Solutions