Transporting GREEN to Your Bottom Line

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Transporting GREEN to Your Bottom Line

• Justin M Hall Director of Sales
  IntegrationLogistics Planning Services
  KeyFreight

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Hi...Find me for helpful tips for attaining
Sustainability Nirvana!
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Transporting GREEN to Your Bottom Line
Logistics and Supply Chain Managers can innovate,
comply, and benefit from going Green IF they
believe in the Why

• More sustainable business model/legacy
• Motivated, engaged employees
• Competitive advantage/differentiation
• Increased customer loyalty
• Increased profitability
• Enhanced reputation
• Long-term benefits to the global environment
• and your bottom-line

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Transporting GREEN to Your Bottom Line

• The old view that environmentally sound
  practices are the enemy of profit is outdated
• Staples
• Shippers Service Providers are embracing
  Sustainability
• AMR Research
• Some of the worlds largest shippers are
  counting the savings in energy costs in the
  billions of dollars
• Traffic World
• I dont think this can afford to be a
  fad...going green has provided a pretty good
  financial return!
• Dow Chemical

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Transporting GREEN to Your Bottom Line
2009 Attendees Sustainable Supply ChainSummit
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Transporting GREEN to Your Bottom Line

• Dow Chemical
• Between 95 05 the company saved 3 Billion by
  reformulating its packaging techniques
• Wal-Mart
• Estimates it will save 3.4 Billion by having
  Suppliers cut packaging materials by just 5
• It will reduce 667,000 metric tons of carbon
  dioxide...which is equivalent to taking 213,000
  trucks off the road each year
• Staples
• Reduce carbon emissions by 7 from 2001 levels by
  2010
• Installed governors to cap Truck speeds at 60mph
  thus cutting fuel costs by 25 or between
  500,000-750,000 gallons

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What gets MEASURED gets MANAGED
What scorecards are you keeping on your Vendors
packaging Shipping processes?.
What are your freight management partners doing
to award promote Eco-Friendly Carriers?
LLP/3PL
VENDORS
AGENDA
CARRIERS
YOUR FIRM
Are you promoting both Carbon Cost cutting
initiatives across your enterprises? Look for
ideas in todays presentation
Do your preferred Carriers have a corporate Green
initiatives, are they a SmartWay carrier are
they showing proven results?
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Transporting GREEN to Your Bottom Line

• What do over 35 BILLION Gallons of Diesel Per
  Year equal?
• Current Combined U.S. Truck and Rail Freight
  Consumption
• 350 Million Metric Tons of CO2 Emissions
  Annually
• Emissions of Approximately 70 Million Cars
• Consumption by 2012 45 Billion Gallons Per
  Year!

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Transporting GREEN to Your Bottom Line

• Carriers with strong commitment to Green fleet
  management...
• Combining operations and technology to save fuel
  by reducing loads and empty miles
• Collaboration among suppliers and customers for
  backhauls dwell time reductions
• Developing new designs for more efficient trucks
  that include bolt-ons that can be added in the
  aftermarket to save up to 25 fuel (Wal-Mart)
• Measuring energy use and emissions by ships,
  containers, ports, aircraft and warehouses
• Improved waste reduction and disposal
• Reporting on their actions in annual reports
• Naming Chief Sustainability Officers

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Case Study Small Changes Deliver Big Results

• In 2008, both Con-way Freight and Con-way
  Truckload turned back their fleets speed
  governors, lowering maximum speeds.
• Con-way Freight 65 to 62 mph
• Con-way Truckload 70 to 65 mph
• Expected annual results from reduced speeds
• Fuel savings of 6 million gallons
• Carbon emissions reduction of 134 million pounds
• The equivalent of removing 13,600 passenger cars
  from Americas highways
• Low profile tires improve rolling resistance and
  reduce weight
• Idling monitors set to 3 minutes
• Trailer weight reduced

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Case Study FedEx names C.S.O!

• Chief Sustainability Officer Mitch Jackson
• Key facts from 08 Global citizen report in FedEx
  annual shareholder report
• Key steps to reducing fuel spend, CO2 emissions
  and reliance on foreign oil
• Became charter member of SmartWay
• Improved route-plans by 15 45M gallons of
  fuel 450K metric tons of CO2 emissions
• Convert 727s to 747s Air CO2 by 47
  Costs
• Engaged customers to air shipping and
  ground shipping

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Transporting GREEN to Your Bottom Line
Most initiatives in transportation and logistics
are based upon efficient operations, and should
be done whether there are green benefits or not...
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What gets MEASURED gets MANAGED
What scorecards are you keeping on your Vendors
packaging Shipping processes?.
What are your freight management partners doing
to award promote Eco-Friendly Carriers?
LLP/3PL
VENDORS
AGENDA
CARRIERS
YOUR FIRM
Are you promoting both Carbon Cost cutting
initiatives across your enterprises? Look for
ideas in todays presentation
Do your preferred Carriers have a corporate Green
initiatives, are they a SmartWay carrier are
they showing proven results?
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Transporting GREEN to Your Bottom Line
Did you know?

• ...a bill before Congress...to allow six- axle
  trailers capable of GVW of 97,600 lbs. 
• This could take 400,000 trucks off the road in
  the gypsum industry alone each year. 
• Canada has 110K Gross Vehicle Weight limits
  Mexico has 106K GVW and Norway just approved 120K
  GVW. 
• Its about improving productivity less fuel
  consumption less congestion and one way of
  helping to deal with driver shortages another hot
  topic here at TIA. 
• The industry is projecting driver shortage issues
  as soon as the economy swings in 2010. 

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Transporting GREEN to Your Bottom Line
Important site www.epa.gov/smartway

• In 2004, EPA launched SmartWay
• Any company that ships or receives items
  delivered by truck or rail transport is eligible
  to participate in SmartWay as a Shipper Partner.
• What does the SmartWay brand identify?
• The SmartWay brand signifies a partnership among
  government, business and consumers to protect our
  environment, reduce fuel consumption, and improve
  our air quality for future generations. 

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Transporting GREEN to Your Bottom Line

• Contract and promote SmartWay approved carriers
• These carriers are committed to investing in
  clean burning engines
• Driving 60mph to lower consumption
• Add wind reduction flaring on trailers
• Flag SmartWay carriers on their TMS system or
  Vendor Routing guides
• Commit to increasing their managed spend with
  SmartWay carriers by 10 annually
• Add SmartWay requirements to your turnkey project
  RFPs

Set expectations for your LLP/3PL to...
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Transporting GREEN to Your Bottom Line
Your LLP/3PL can help to...

• Predict and plan for environmental regulation
  compliance
• Find the best way to measure and reduce your
  logistics carbon footprint
• Reduce your supply chains vulnerability to the
  availability and price of oil
• Work with carriers to increase fuel mileage
  dramatically and clean up truck emissions
• Find the intermodal shipping solutions that are
  right for your distribution needs
• Learn how to market yourself as green and avoid
  accusations of green-washing
• Improve brand reputation and build investor
  interest

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What gets MEASURED gets MANAGED
What scorecards are you keeping on your Vendors
packaging Shipping processes?.
What are your freight management partners doing
to award promote Eco-Friendly Carriers?
LLP/3PL
VENDORS
AGENDA
CARRIERS
YOUR FIRM
Are you promoting both Carbon Cost cutting
initiatives across your enterprises? Look for
ideas in todays presentation
Do your preferred Carriers have a corporate Green
initiatives, are they a SmartWay carrier are
they showing proven results?
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Transporting GREEN to Your Bottom Line
A.T. Kearney/ISM Study

• Survey of Companies that will change supplier
  sustainability requirements

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Transporting GREEN to Your Bottom Line

• Are your Vendors SmartWay members?
• Will they commit to ship and receive your
  purchased goods using SmartWay certified
  Carriers, Logistics Providers Brokers?
• Enforcing No-idling policies at docks?
• Use a combination of truck and locomotive
  transport to ship your goods?
• Commit to improve your environmental scores over
  a period of three years?

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What gets MEASURED gets MANAGED
What scorecards are you keeping on your Vendors
packaging Shipping processes?.
What are your freight management partners doing
to award promote Eco-Friendly Carriers?
LLP/3PL
VENDORS
AGENDA
CARRIERS
YOUR FIRM
Are you promoting both Carbon Cost cutting
initiatives across your enterprises? Look for
ideas in todays presentation
Do your preferred Carriers have a corporate Green
initiatives, are they a SmartWay carrier are
they showing proven results?
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13 Strategies to reduce Contamination, Congestion
Costs!

• Better purchase planning amongst Buyers
  consolidate non-regional supplier LTL into full
  TL
• Utilize Partial Truckload options to consolidate
  with half-empty carriers vs. buying a full
  trailer
• Leverage NA Rail Barge network for
  Poles/Cable/Steel/Blades...
• Leverage Rail Barge network for Bulk product
  Coal, Limestone Chemicals
• Utilize Intermodal for supplier freight over 1000
  miles away
• Save Trees and Time by paying invoices via EDI

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13 Strategies to reduce Contamination, Congestion
Costs!

• Look at your internal fleet! How well are you
  maximizing load plans on your assets...do you
  have flatbeds driving down the road with 2 skids
  on back?
• Create a cross-dock operation that allows for
  more predictable deliveries to eliminate Tractor
  idling at congested delivery sites.
• Does your LLP/3PL have any Nursery customers??
• ComEd netted 2 million annually by making and
  selling tree mulch instead of sending the tree
  limbs to landfills

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13 Strategies to reduce Contamination, Congestion
Costs!

• Supplement internal fleet with a dedicated
  operation performed by 'For Hire' carriers. 
• AAA Cooper deploys their PD Fleet to run
  resupply routes for Alabama Power after these
  trucks come in off the streets in late
  afternoon.  This effectively allows that asset to
  be used much more productively and allocates the
  operating costs over double the activity.  Cuts
  costs reduces congestion
• Run cross dock operations to Consolidate multiple
  carrier deliveries at one carrier dock and
  deliver out to plants to eliminate multiple
  receiving operations reduces gate activity
  reduces security risks etc
• The LPS display in the exhibit hall with Dibble
  tractor 2009 bio-diesel and new redesigned CRDM
  delivery trailer that has 25 greater capacity
  for greater productivity new safety features on
  radio-active contamination reduced delivery
  costs and reduced emissions
• See next page...

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13. How many sheets of paper 1 Tree?

•  Conservatree.com puts the value at 16.67
  reams/tree or 8,333 sheets.
• Using our 2008 Utility freight figures LPS
  processed
• EDI 1,105,892
• Paper 264,907
• Total 1,370,799
• As we move to our new data entry processor with
  an estimated 95 of our shipments to process via
  EDI, this breakdown would be
• EDI 1,247,409
• Paper 60,390
• Total 1,370,799
• At our current EDI volumes for 2008, LPS saved
  265 trees.
• (1,105,892 x 2) / 8333

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