Aveda's Product Distribution System: A Strategic Assessment of Greenhouse Gas Emissions & Energy Consumption
Aveda Corporation (Aveda), a division of Estée Lauder, is widely considered to be on the forefront of environmental and social issues. The company is a manufacturer, wholesaler and retailer of plant, flower and mineral-based salon, personal-care, and lifestyle products. Products are sold through a unique network of Aveda-branded cosmetology institutes, independent hair salons and spas, and Aveda-owned retail stores. Aveda has directed considerable effort towards reducing packaging waste through innovative packaging materials and designs. However, many of the company’s customers are small-business owners that operate relatively low-volume stores, and many orders are placed with Aveda and its distributors for quantities of individual products that are smaller than case lots. As a result, Aveda’s packaging and distribution on a per unit basis is likely relatively high compared with traditional personal care product manufacturers that are able to distribute their products in larger quantities.This project is intended to provide Aveda with a better understanding of its product delivery system (PDS) in terms of transportation and packaging, quantify the associated greenhouse gas (GHG) emissions and energy consumption, and recommend financially viable solutions to reduce these impacts.