Sodexo Upgrades Logistics Strategy, Leading a New Standard for Sustainability in the Service Industry

Shanghai, February 6, 2025 – Sodexo, a global leader in sustainable food and valued experiences, has recently completed a major upgrade to its logistics strategy.

This strategic initiative strengthens Sodexo's supply chain management, boosting operational efficiency while delivering a greener, safer, and more digitalized service experience for customers. It also reinforces Sodexo's commitment to sustainability, injecting fresh momentum into the long-term development of China's service industry.

Following Sodexo's acquisition of Compass Group's mainland China operations, the company launched a regional dual-warehouse consolidation plan in September 2024, optimizing logistics across three key regions: East China, South China, and North China. Over the past five months, Sodexo has undertaken a full-scale upgrade of its logistics system—from raw material procurement to final product delivery, as well as equipment enhancements, system improvements, and workforce integration—ensuring greater efficiency and seamless operations.

The fully upgraded logistics system features several highlights:
•    Streamlined Workforce: Improved team collaboration through job optimization and process refinement.
•    Equipment Upgrade: Integration of cutting-edge cold chain and warehousing technologies to enhance storage and transportation efficiency.
•    Temperature Zone Expansion: Expanding frozen, chilled, and ambient distribution capabilities to cater to diverse customer needs.
•    System Iteration: Deployment of intelligent management systems to optimize order processing, inventory control, and delivery routes.

The newly upgraded logistics system not only delivers multiple business benefits to customers but also contributes to broader sustainability efforts: 
•    Service Upgrade: More precise deliveries and faster response times, leading to higher customer satisfaction.
•    Digital Enablement: Full-chain visibility through advanced system upgrades, improving operational transparency and efficiency.
•    Green Logistics: Commitment to eco-friendly packaging and low-carbon transportation to drive sustainable development.
•    Resource Integration: Strengthened supply chain coordination through improved resource integration.
•    Economic Impact: Cost savings through economies of scale, providing greater value for customers.
•    Food Safety: Implementing traceable, transparent management systems to ensure the highest food safety standards, safeguarding the health of customers and consumers.
•    Social Responsibility: Supporting community development through local procurement, reducing food waste, and minimizing carbon emissions.

Since entering the Chinese market in 1995, Sodexo China has a dedicated team of 17,000 employees across over 950 sites, serving over 1.2 million consumers on a daily basis. As a foreign-invested enterprise deeply committed to corporate social responsibility, Sodexo is leveraging this logistics integration and strategic upgrade to drive continuous supply chain innovation. The company aims to help customers stay competitive in an evolving market while fostering long-term, mutually beneficial partnerships.

Commenting on the logistics strategic upgrade, Ms. Isabelle HANNEDOUCHE, Managing Director of Sodexo Greater China, said, "Sodexo has entered in China for 30 years. As a global leader in sustainable food and valued experiences, we are confident in the long-term growth of the Chinese market. This logistics upgrade not only reaffirms our commitment to China but also unlocks new synergies after  acquisition. We remain dedicated to our 'In China, For China' mission, creating greater value for both customers and society."

Ms. Franny, Head of Supply Management of Sodexo Greater China, said, "After the integration and upgrade of the logistics system, we can deliver even more cost-effective solutions through optimized resource integration, ensuring greater value for our customers. The advancement of intelligent and sustainable logistics is paving the way for a more efficient and eco-friendly supply chain service system. In addition, enhanced system traceability and visible management will ensure real-time monitoring of the entire chain from source to delivery, thus providing solid safeguards for food safety. This strategic upgrade not only strengthens Sodexo's operational and service efficiency but also aligns with the evolving needs of the Chinese market, contributing to its long-term sustainable growth."

By transforming its logistics strategy, Sodexo has elevated its customer service capabilities while setting a new industry benchmark for green innovation. This initiative reinforces the company's commitment to driving sustainability in China's service industry and fostering a future of shared success.