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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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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.
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.

truck expenses
Truck Expenses

9.2 Million

3.7 Million

26.7 Million

3.1 Million

6.1 Million

18.2 Million

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
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

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
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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
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