Hy vee fuel efficiency
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Hy-Vee Fuel Efficiency. Employee Owned Company Founded in 1930 Corporate Office – West Des Moines $7.2 Billion in Sales Last Year 235 Stores Over 60,000 Employees. Chariton. Hy-Vee Distribution Centers Chariton, Iowa Cherokee, Iowa Subsidiary Distribution

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Hy-Vee Fuel Efficiency

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Hy vee fuel efficiency

Hy-Vee Fuel Efficiency


Hy vee fuel efficiency

  • Employee Owned Company

  • Founded in 1930

  • Corporate Office – West Des Moines

  • $7.2 Billion in Sales Last Year

  • 235 Stores

  • Over 60,000 Employees

Chariton

  • Hy-Vee Distribution Centers

    • Chariton, Iowa

    • Cherokee, Iowa

  • Subsidiary Distribution

    • Perishable Distributors of Iowa

    • Lomar Foods

    • Florist Distributing, Inc.


Hy vee sales history

Hy-Vee Sales History


Hy vee fuel efficiency

Approximately 250,000 Square Mile Trade Territory


Hy vee fuel efficiency

Hy-Vee - Transportation


Asset allocation

Asset Allocation

Tractors

Trailers

Total Acquisition Cost: $60,000,000


Miles driven

Miles Driven

Equivalent to 1,248 trips around the world every year.


Transportation 2011

Transportation - 2011


Effect of fuel cost on truck expense

Effect of Fuel Cost on Truck Expense


Effect of fuel cost on truck expense1

Effect of Fuel Cost on Truck Expense


Truck expenses

Truck Expenses

9.2 Million

3.7 Million

26.7 Million

3.1 Million

6.1 Million

18.2 Million


Fuel economy

Fuel Economy


Projected savings fuel economy over 6 4 mpg

Projected SavingsFuel Economy over 6.4 mpg


Technology

Technology

  • Tractor/Trailer Aerodynamics

  • Tires – Super Singles & Fuel Efficient Duals

  • Onboard Computers – People.net

  • Fuel – Biodiesel & Propane

  • Load Planning – Retalix Transportation Optimization (RTO)

  • Dispatch Visibility – CAMS

  • Tractor Specification


Hy vee fuel efficiency

Aerodynamics


Hy vee fuel efficiency

Trailer Aerodynamics


Super single tires

SUPER SINGLE TIRES

  • Began in 2005 with 5 tractors & 5 trailers (40 tires); expanded to additional units

  • Test results with super singles on tractor & trailer showed 0.12 to 0.32 mpg improvement in fuel economy

  • Fuel economy shown with super singles was wiped out by reduced tire wear & driver satisfaction

  • Currently phasing out super single tires &

    have gone to a fuel-efficient dual tire


Hy vee fuel efficiency

Fuel-Efficient Duals


Peoplenet onboard computers

PeopleNet Onboard Computers


Peoplenet reports

PeopleNet Reports

  • Records MPG

    • By Driver

    • By Tractor

  • Records Idle Time

  • Driver Speeds

  • Driver Activity Reports

  • Bread Crumb Trail

  • Fuel Tax


Fuel soy biodiesel

Fuel – Soy Biodiesel

  • 18 month test

  • 5% blend

  • Adds lubricity to the engine to offset the

    ultra-low sulfur diesel

  • 183,000 gallons purchased

  • No impact on fuel economy

  • Cleaner fuel system

  • Cost Prohibitive – Adding Soy Biodiesel

    increased fuel cost by $0.09 per gallon


Benefits of fuel propane mixture

Benefits of Fuel – Propane Mixture

  • Reducing fuel cost & increasing fuel economy

  • Improved engine horsepower

    • Receive approximately 75 HP boost with propane

  • Extended service intervals

    • Use of propane reduces particulates caught in the particulate trap

    • Oil soot samples have been reduced

  • Reduced greenhouse gas emissions

  • Warranty is still valid


Propane diesel injection system

Propane Diesel Injection System

  • A small amount of propane is mixed with the air intake prior to the introduction of the air to the engine (20% propane & 80% diesel).


Propane diesel injection system1

Propane Diesel Injection System

Why it is so beneficial….The small amount of propane increases the combustion efficiency of the diesel burn producing more mpg and less emissions and enhanced performance.


Retalix transportation optimization rto

Retalix Transportation Optimization - RTO

  • Routing Software was installed in 2010

  • Interfaced with our Warehouse Management System & Electronic Dispatch

  • Provides Dynamic Routing


Cams dispatch software

CAMS Dispatch Software

  • Allows visibility between Distribution Centers

  • Interfaces with our warehouse management system, routing software, & onboard technology (PeopleNet)

  • Streamline payroll

  • Dispatch loads to drivers

  • Reporting & analyzing equipment usage

  • Tracks backhauls

  • Manages drivers time off

  • Track average delivery weight & cube by store


New tractor technology

New Tractor Technology

  • 2011/2012 Volvo Tractor

    • 2010 EPA emission standards

    • Aerodynamic body style

    • I-Shift automatic transmission

    • Disk breaks reduce stopping distance

    • Have purchased 60 over the last two years

    • Averaging 6.8 mpg as a group

    • Most popular tractors we have purchased


Increase freight capacity

Increase Freight Capacity

  • Maximize Outbound Weight & Cube

    • 81,140 Loads

  • Contract Freight

    • 4,380 Loads

  • Backhaul Freight

    • 38,069 Backhauled

  • Direct Store Deliveries

    • Included in backhaul freight


  • Hy vee fuel efficiency

    Contract Freight - Hormel

    • Partnered with Hormel

    • in 2004

    • Hy-Vee’s private fleet

    • delivers to Hy-Vee

    • stores in a 7 state area

    • Hormel has several

    • plants in this 7 state

    • area

    • Currently pick-up 2,400 loads per year

    Chariton & Cherokee DC’s

    Stores

    Plants


    Backhauls

    Backhauls

    Backhaul over 50% of our loads

    Reduce empty miles

    Deliver to subsidiaries

    Major Suppliers:

    Kraft

    Premium Water

    American Bottling

    Kimberly Clark

    Quaker

    Hormel

    General Mills

    Unilever

    Nestle


    Direct store deliveries dsd s

    Direct Store Deliveries – DSD’s

    • 8.4% of backhauls are DSD’s

    • Allows stores to make better deals with vendors

      • Kraft

      • Premium Water

      • American Bottling

      • Kimberly Clark

      • Quaker

      • Hy-Vee Lawn & Garden


    Hy vee fuel efficiency

    Questions?


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