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Supply Chain

Axfood’s Dagab Partners With Scania For Sustainable Transport

Sweden’s Axfood has announced that its subsidiary Dagab has partnered with Scania to reduce fossil-fuels in its fleet.

The partnership will see Scania providing advisory services in fleet planning, assessing suitable routes for electric trucks and selecting an efficient charging infrastructure.

Initially, Scania will deliver its new-generation electric truck and plug-in hybrid vehicles to Dagab in the greater Stockholm area.

This move will be instrumental in assessing the prerequisites for further expansion of an electrified fleet, Axfood added.

'A Huge Undertaking'

President and CEO of Axfood, Klas Balkow, commented, “With our extensive network of stores throughout the country, as well as online customer sales, transforming the distribution system while upholding efficiency is a huge undertaking that will require careful planning and implementation. In this endeavour, we are pleased to partner with Scania over the coming years.”

The main challenges that Dagab and Scania need to overcome for the project include arrangements for sufficient power supplies at logistics centres, efficient charging facilities along distribution routes and adapting the fleet for seasonal variations.

In certain cases, it might be preferable to operate on renewable fuels such as biogas or biodiesel to achieve immediate carbon emission reductions, Axfood added.

Therefore, both companies need to analyse routes and distribution patterns to zero in on the most sustainable solution.

'Shift To Sustainable Transport'

Henrik Henriksson, president and CEO of Scania, said, “This agreement is a clear manifestation of our aim to be leading in the shift to sustainable transport in close collaboration with forward-looking companies, mutually exploring and developing logistics systems and technology along the way to a fossil-free future.

“No one single player has all the answers today, and it is only together with customers, infrastructure partners, energy suppliers and policymakers that we will find the answers that are optimal for the entire ecosystem.”

Dagab handles assortment, purchasing and logistics for Axfood.

In 2023, it plans to open a new 100,000 square metre logistics centre in Bålsta, northwest of Stockholm.

The facility will handle 60% of the company's goods and Scania is to contribute to the planning of the centre and handle Dagab’s fleet of vehicles as well as electric trucks for delivering goods.

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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