Luís Simões presents its Sustainability Report and Accounts for 2023, which confirms that the Group maintains its positive growth trend. With a 2.9% increase in turnover compared to 2022, Luís Simões reflects its commitment to innovation, quality and integral sustainability.
In 2023, Luís Simões celebrated 75 years of history. After successfully overcoming the challenges that 2022 presented to the distribution and transport sector, for the more immediate future it set out to increase its business volume, open new logistics centers and optimize its customer services. In parallel, it continued to reconcile these business objectives with ESG (environmental, social and governance) criteria and the Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda.
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Innovation and quality in customer service
At the heart of Luís Simões’ strategy is a solid commitment to innovation. Luís Simões continued to modernize its facilities and processes and, after implementing new transport management systems (TMS) technologies and a new ERP, began a project to modernize a portal with information for its customers, supported by Business Intelligence tools. It also laid the foundations of a new warehouse management system (WMS) for managing the entire logistics process.
Additionally, Luís Simões promoted a Continuous Improvement project for Logistics, which will guarantee the implementation of a governance model across the entire organization, which supports the digitalization of processes and the application of Kaizen metrics in logistics centers. All of this will generate greater efficiency at all levels.
In terms of quality, food safety is a priority for Luís Simões. More than 70% of the services that LS provides are linked to food consumption or personal hygiene and health care products, which are subject to specific requirements. To ensure compliance, Luís Simões undergoes unannounced annual audits, and in 2023 obtained the highest possible evaluation in all certified delegations.
In total, Luís Simões underwent 77 internal and external audits and its main operations centers comply with ISO 9001 quality standards and ISO 14001 environment standards. In addition to these, there is the Ecovadis Gold Medal, obtained for the fifth year consecutive, and the certifications of “Good Medicine Distribution Practices” in Cabanillas del Campo and “Ecological Products Warehouse” in Guadalajara, which it has guaranteed since 2020 and 2021, respectively.
Decarbonization of transport and logistics operations
In the scope of sustainability, Luís Simões has implemented and advanced different projects that aim to reduce its environmental footprint. It maintains a solid program of measures whose ultimate goal is to achieve a 50.4% reduction in the company’s direct CO2 emissions in the period 2021-2032.
Among the most notable actions is the transformation of the fleet, with an average age of 4.6 years, below the sector average, and with 99% of vehicles equipped with Euro V and VI engines, which are more efficient. Furthermore, LS has 17 Euromodular vehicles which, with a load capacity equivalent to three conventional trucks, contribute to reducing fuel consumption and emit 30% less greenhouse gases (GHG) per ton transported. Additionally, it started a pilot project with fuels from renewable sources and defined criteria for hiring transporters in terms of Euro motorization.
Luís Simões also installed photovoltaic solar panels in its main logistics centers, including the Carregado Logistics Operations Center, the Moninhos headquarters and the Reta technical assistance centers in Vila Nova de Gaia and Carregado.
Maximum security on the road, in warehouses and on the network
The scope of safety was another one that Luís Simões strengthened during the last year, thanks to the efforts dedicated to this purpose, it recorded 23% fewer workplace accidents than in the previous year. In the same vein, the Corporate Security Department drew up a plan to reinforce and improve the culture of prevention and security with awareness-raising actions for all employees. Cybersecurity infrastructures were also reinforced, a crucial aspect at a time when the company is advancing in its digitalization and in its e-commerce division, consequently increasing the volume of digital data it manages.
“The year 2023 was very important for us. We celebrated 75 years of history and further demonstrated the robustness of our business and the firmness of our commitment to sustainability. We know that our team continues to be our most powerful resource. Without everyone’s collaboration and involvement, none of these advances would have been possible. To all of them, I would like to say that this is just the beginning, and that we will continue to move forward, always with our eyes on the future,” explains José Luís Simões, President of Luís Simões.