Cost Cutting Initiative

In another cost cutting initiative Wal-Mart's marketing team ran a very creative TV commercial during the second quarter of this year. In the commercial a Wal-Mart truck driver states that their "Green Initiatives" of reducing empty miles and consolidating shipments were a major reason Wal-Mart was able to roll back prices for the consumer. A very powerful message because most people do not associate "green initiatives" with cost savings. We are here to tell you that all of these "Green Initiatives" will provide additional greenbacks in the corporate pocket.

Many other corporations have implemented cost savings "Green Initiatives". For example, Kraft Foods took on a huge green supply chain initiative when it implemented an environmental effort by taking 50 Million truck miles out of their distribution network. The process involved moving truck shipments to barge along with consolidating loads and eliminating empty miles.

Huggies Diaper

To put this into perspective, on average long haul trucks get about 6 miles per gallon on diesel fuel so this effort by Kraft alone saved over 30 Million gallons of diesel fuel.

At PepsiCo, environmental sustainability has been called "performance with purpose". Pepsi's supply chain executives from their four major business units are accountable for defining and driving the company's environmental goals which include reducing water consumption by 20% and fuel consumption by 25% by the year 2015.

PepsiCo works with each of its 210 national carriers to score and track mileage efficiency and CO2 emissions per mile. One PepsiCo unit installed shut-off equipment on tractors to prevent idling for more than five minutes. This process alone is saving about 17,500 gallons of fuel annually.

The company is also expanding its use of intermodal transportation and is building alliances with other shippers. They're looking for partners to fill up boxcars to take trucks off the road because rail transportation is more efficient from a fuel consumption and emissions standpoint. Do you think Warren Buffet knew something about these efficiencies when he purchased the BNSF Railroad a few months back!

It is clear the major shippers are driving these environmental processes with their freight carrier partners. Therefore the carriers are being forced into these green initiatives whether they like it or not.

On the carrier front, UPS has more than 100,000 delivery trucks on the road each day. They travel more than 1.3 billion miles annually and deliver billions of packages, combusting millions of gallons of fuel each year. UPS' Green Fleet today contains over 2000 vans running on everything from Compressed Natural Gas to Electricity. The CNG vans shave 15% in fuel costs over the former diesel fuel powered engines.

Recently UPS added 200 new Hybrid/Electric vehicles to its Green Fleet. The combined fuel savings for these 200 vehicles alone is equivalent to saving 176,000 gallons of diesel fuel per year.

UPS' Package Flow Technology optimizes the routes for every package before it is loaded onto a delivery vehicle. Since its inception this technology has eliminated 100 million miles driven.

UPS' Delivery Information Acquisition Devices (DIAD's), which electronically records delivery information, saves over 89 million sheets of paper each year, the equivalent of 7,308 trees annually.

UPS and FedEx who combined operate over 150,000 plus delivery vehicles are looking into a variety of cleaner technologies including diesel-electric hybrids, and hydrogen fuel cell vehicles. They're doing this to satisfy Washington's push to cut emissions since trucks produce more than 30% of urban smog. Don't let anyone fool you; in addition to the Green Effect the biggest motivator is cost savings!

The numbers are beginning to add up. JD Powers and Associates estimates there are more than 500,000 hybrid vehicles on the road today with 40% of them trucks.

YRC Worldwide, one of the nation's largest LTL carriers, is aggressively addressing Green House Gas reduction strategies by limiting truck speeds to 62 MPH; implementing extensive use of intermodal services with railroads; setting limits on daily truck idling and enforcing tire pressure inflation and monitoring programs.

YRC has also recently introduced the Green Balance Calculator to measure a company's emissions and voluntarily offset the carbon footprint of its shipments. The calculator evaluates eight transportation activities that produce carbon emissions, among them, fuel usage, rail miles, air miles, and other factors.

YRC has taken direct aim at the airfreight industry. Airfreight tends to be very expensive and less environmentally friendly than ground transportation. A shipper might consider using YRC's or other carriers' expedited ground service which would reduce costs and carbon emissions. For example, shipments that are picked up on Thursday and Friday in California, and are delivered in New York City on the following Monday. Just think of the cost savings this change alone would bring along with its carbon reduction initiative.

Tony Nuzio

Cost Cutting Initiative

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Cost-cutting initiative

In another cost-cutting initiative by the marketing team at Wal-Mart, a very creative TV spot ran during the second quarter of this year. Wal-Mart in commercial truck drivers found that their "green initiatives" to reduce empty miles and consolidation programs were a key reason for Wal-Mart has rolled back prices to the consumer. A very powerful message, because most people do not associate "green initiatives" to reduce costs. We are here to tell you that all these "GreenInitiatives "provide more greenbacks in your pocket business.

Many other companies have realized cost savings, for "green initiatives". For example, Kraft Foods of huge green supply chain initiative, when it implemented an environmental effort by the deposit of 50 million truck-miles outside of its distribution network. The wagons participants barge shipments along with the consolidation of loads and the elimination of miles of emptiness.

Huggies Diaper

This put into perspective, the averageLong-haul trucks get about 6 miles per gallon of diesel fuel thus saved by these efforts, the sheer force of more than 30 million gallons of diesel fuel.

PepsiCo has been the ecological sustainability as "Performance with a purpose." Pepsi-Supply Chain Manager of its four main business segments include the responsibility to define and guide the company's environmental objectives, to reduce water consumption by 20% and fuel consumption by 25% by 2015.

PepsiCo is working with eachits 210 domestic airlines to mark and track mileage and emissions of CO2 per kilometer. PepsiCo to prevent a valve unit installed equipment from tractors at least for more than five minutes. This process alone is about 17,500 gallons of fuel a year.

The company is also the use of intermodal transport and the creation of alliances with other shippers. They are looking for partners to fill trucks to take cars off the road because rail isefficiently from the standpoint of fuel consumption and emissions. Do you think Warren Buffet knew nothing of these efficiencies, the BNSF Railway when it bought back a couple of months!

It 'clear that the large shippers are the driving force of these ecological processes with their partners carrier. Therefore, the bearers of these green initiatives, whether they like it or not enforced.

On the support, UPS has more than 100,000 trucks on the road each day. Travel1300000000 miles than a year and billions of packets, the burning of millions of gallons of fuel delivered each year. UPS 'green fleet now includes more than 2,000 vans running on everything from compressed natural gas into electricity. The CNG vans shave 15% of fuel costs in the first diesel-powered engines.

UPS has recently added 200 new hybrid / electric in its green fleet. The combined fuel economy of these 200 vehicles is equal to savings of 176,000 liters dieselOf fuel a year.

Flow UPS 'technology package optimizes the routes for each packet before being loaded onto a truck. Since its inception, this technology has eliminated 100,000,000 miles driven.

About UPS 'delivery Acquisition Device (DIAD) are electronically captured delivery information, saving more than 89 million sheets of paper per year, equivalent to 7308 trees per year.

UPS and FedEx, the shipping service more than 150,000 vehicles combinedWatching a variety of technologies including clean diesel-electric hybrids and fuel cell vehicles. They do this to satisfy the urge Washington to reduce emissions of trucks because they produce more than 30% of urban smog. No one deceive you, as well as the effect is the greatest motivator green cost savings!

The numbers are starting to add up. JD Powers and Associates estimates that more than 500,000 hybrid vehicles on the road today with 40% of themTrucks.

YRC Worldwide, one of the largest LTL carriers in the nation is facing aggressive strategies to reduce greenhouse gases and limiting truck speeds of 62 mph, the implementation of extensive use of intermodal rail services, setting limits on the truck every day to a minimum and running the inflation pressure of tires and monitoring programs.

YRC has also recently Green and balance calculator, introduced the emissions of a company to measure and compensate for the voluntary carbon dioxide emissions of their broadcasts.The computer evaluates eight transport activities that produce carbon dioxide emissions, including fuel consumption, miles-rail, airline miles and other factors.

YRC has targeted direct cargo sector. Air transport tends to be very expensive and less environmentally friendly road transport. A carrier may take into account or another carrier YRC is "reduce land expedited service, the costs and emissions of carbon dioxide. For example, shipments picked up on Thursday andFriday in California, and delivered in New York on the following Monday. Just think of the cost savings alone would make this change of thinking with his initiative to reduce carbon.

Tony Nuzio

Cost-cutting initiative

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