Reducing ghg s in our transportation network to create a more sustainable logistics profile
Download
1 / 29

Reducing GHG’s in our Transportation Network to Create a More Sustainable Logistics Profile - PowerPoint PPT Presentation


  • 102 Views
  • Uploaded on

Reducing GHG’s in our Transportation Network to Create a More Sustainable Logistics Profile. Sept. 9, 2009. Today’s Agenda …. ► Sustainability Vision in Our Supply Chain ► Types of Transportation GHG’s at JCI Freight Logistics Travel Service/Management Fleet Vehicles

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Reducing GHG’s in our Transportation Network to Create a More Sustainable Logistics Profile' - vachel


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Reducing ghg s in our transportation network to create a more sustainable logistics profile

Reducing GHG’s in our Transportation Network to Create a More Sustainable Logistics Profile

Sept. 9, 2009


Today s agenda
Today’s Agenda … More Sustainable Logistics Profile

►Sustainability Vision in Our Supply Chain

►Types of Transportation GHG’s at JCI

Freight Logistics

Travel

Service/Management Fleet Vehicles

►Opportunities for GHG Reductions

  • Freight Logistics

  • Travel

  • Fleet


Sustainability at johnson controls
Sustainability at Johnson Controls More Sustainable Logistics Profile

Sustainability

Through our products, services,

operations, and community involvement, we promote

the efficient use of resources to benefit all people and the world.

Environmental Stewardship Social Responsibility Economic Prosperity

(Planet) (People) (Profit)

2. Achieve competitive advantage (e.g., increase sales, profit, market share) from environmentally responsible products and services

3. Reduce our global environmental foot print (e.g., carbon, waste)

4. Work with our suppliers to improve the eco-efficiency of the supply chain

5. Increase minority business development and supplier diversity

6. Strive to attain a high performance work environment that is free of work place diseases and that is physically and emotionally safe.

7. Recognize and respect the human rights of our employees and community stakeholders

8. Promote fair selection, development, engagement and recognition of our people to ensure a diverse, inclusive and sustainable work force

9. Invest in the communities we serve through employee volunteerism and targeted philanthropic giving

1. Ensure the ongoing financial viability of the business through strategic investments and management of risk

10. Hold ourselves accountable to the highest standards of corporate and personal integrity and ethics

Key Strategies Value


Ghg and carbon sources
GHG and Carbon Sources More Sustainable Logistics Profile


Logistics travel fleet ghg overview
Logistics, Travel, Fleet GHG Overview More Sustainable Logistics Profile

  • Logistics: Approximately $1 B spend => 19 M tons GHG

  • Travel: Approximately $200M spend => 54 M tons GHG

  • Fleet: Approximately 18,000 vehicles => X M tons GHG


Logistics Focus More Sustainable Logistics Profile


Sustainability goals within our supply chain
Sustainability Goals Within Our Supply Chain More Sustainable Logistics Profile

  • Reduce our Global Environmental Footprint (e.g., carbon, waste)

  • Work with our Suppliers to Improve the Eco-Efficiency of the Supply Chain

  • Logistics focus:

  • Increase Mileage Efficiency

  • Decrease Total Miles

  • Supplier Initiatives

  • Find ways to deliver our goods and services

  • to our constituents more efficiently.


Logistics focus fy 2010 global plan spend
Logistics Focus More Sustainable Logistics ProfileFY 2010 Global Plan Spend


Logistics ghg reduction activities moving forward
Logistics GHG Reduction Activities Moving Forward More Sustainable Logistics Profile

  • Increase Mileage Efficiency

  • Convert LTL to TL (Milk-runs, Consolidation Centers – see ‘AE Hub & Spoke Consolidation Network’ slide)

  • Minimum carrier contract mileage clause – set minimum MPG requirement

  • MBBP Rate Cost Modeling - establishing BIC benchmarks for rate cost drivers (Equipment, Fuel, Labor, etc.)

    • Fuel surcharge minimum miles per gallon requirement

  • AE Intermodal (see ‘AE Matamoros, MX Intermodal Example’ slide)

  • Mode Selection (see ‘UTI Analysis 5.1: Mode shift air to ocean’ slide)

  • Decrease Total Miles

  • Supplier Selection footprint (see ‘UTI Analysis 4: Supplier Localization’ slide)

  • Manufacturing Footprint

    • Provide Logistics data / support to Manufacturing Op.’s team to define total supply chain cost

  • Warehouse and Distribution Locations Consolidation

    • North America BE Regional Distribution Center Consolidation (See ‘North America Systems Branch Shipments Consolidation’ slide)

    • Europe BE Katoen Natie Duty Deferred Distribution Warehouse Consolidation (38 warehouses to 4)

  • Increase Pack Density

    • North America AE Trim in Bundles vs Coffin Boxes project increasing density 2.5x (see ‘AE Trim in Bundles’ slide)

    • North America AE Headrest Eco-pack to Coffin Box project

    • Inbound pack density reviews at plants

  • Truckload Utilization (TUMS – AE North America 95% FTL utilization)


  • Logistics ghg reduction activities moving forward1
    Logistics GHG Reduction Activities Moving Forward More Sustainable Logistics Profile

    • Supplier / Misc. Initiatives

    • EPA SmartWay Partnership (see ‘Smartway Partnership’ slides)

      • Carrier SmartWay Participation - JCI Sourcing Expectation

    • Key Supplier Sustainability Programs

      • Maersk Super Slow Steaming

      • Green Logistics at Schenker

      • Fedex

  • Global Logistics Council (first meeting held 8/25 - GHG reduction will be a GLC focus)

  • Find ways to deliver our goods and services to our constituents more efficiently

  • Remote Operations Center with re-set capability

  • Vehicle selection parameters (hybrids, smaller units)

  • Consolidation Centers

  • Balance between Inventory and Freight Expense (GHG’s)

  • Eliminate storage (lead-time efficiency—lean)


  • JCI AE Hub & Spoke Consolidation Network More Sustainable Logistics Profile

    (LTL to FTL and Increased Ship Velocity / Lower Inventory)


    Ae matamoros mx intermodal example
    AE Matamoros, MX Intermodal Example More Sustainable Logistics Profile

    • CHR Example

    • Origin Matamoros, MX

    • Destination Warren, MI

    • Total annual moves: 1008

    • Total miles/move: 2,342

    • OTR fuel (gallons): 378

    • Rail fuel (gallons): 98

    • Annual Fuel reduction (gallons) 281,868

    1766 Rail Miles

    576 OTR Miles


    Analysis 5.1: Mode shift air to ocean More Sustainable Logistics ProfileJCI agreed upon a feasible mode shift plan considering their current business environment as well as a few key assumptions

    Shift in RB, Prover, & Greishaber using 75% tier

    Shift in two products from CTS* (Thailand)

    JCI mode shift plan =

    Total

    +

    =

    Total Savings

    $72,415

    $17,552(1)

    $ 89,967

    $92,565

    $ 17,552

    $ 110,117

    Freight Change

    $20,150

    $ 0 (2)

    $ 20,150

    ICC Change (OH)

    14.7

    23

    Avg. Days Increase

    40.6%

    0%

    Avg. % Hit Minimum

    30

    26

    56

    # Shifted Shipments

    • Considerations for the Mode Shift Analysis:

    • The overall increase in lead-time between air and ocean is feasible for the volume being shifted.

    • There is enough space in Reynosa to accommodate the increase in safety stock when switching from air to ocean

    • BCP was evaluated, but was not shifted to ocean because of the increase in lead time and increase in space for safety stock in Reynosa

    • (1) Two items produced by CTS (25-89244-10 and 25-89244-2) coming from Ayutthya (TH) are being shifted from air to ocean. These products represent 28% of the total weight of CTS shipments. Remaining CTS product will ship via air.

    • (2) Inventory carrying costs not considered for CTS due to consignment status


    Analysis 4: Supplier Localization More Sustainable Logistics ProfileSensitivity Analysis: Scenario 2 – All suppliers are moved to within a distance of 1000 miles from Pharr

    Avg. distance

    1260 mi

    1000 miles


    Analysis 4: Supplier Localization More Sustainable Logistics ProfileSensitivity Analysis: Scenario 3 – All suppliers are moved to within a distance of 500 miles from Pharr

    Avg. distance

    1260 mi

    500 miles


    North america systems branch shipments consolidation from 15 to 4 regional warehouses
    North America Systems Branch Shipments Consolidation More Sustainable Logistics ProfileFrom 15 to 4 Regional Warehouses


    Trim In Bundles Project More Sustainable Logistics Profile

    Opportunity: Transition trim from coffin

    containers to loose loaded trim in

    bundles/bags.

    2.5 pack density improvement


    EPA SmartWay Transport Partnership: More Sustainable Logistics ProfileGeneral Overview

    • SmartWay is a voluntary, market based program that is creating a demand for cleaner, more fuel efficient transportation

    • Major focus on sustainable goods movement

    • Provide tools to help carriers improve their fuel efficiency

    • Through SmartWay, carriers showcase their efficiency to shippers

    • Challenges Shippers and Logistics companies to use SmartWay carriers to move their goods

    • SmartWay directly addresses 3 significant National issues:

    • Global Climate Change

    • Energy Security

    • Business Financial Bottom Line

    • SmartWay works from the principle of you can’t improve something until you properly measure it


    Epa smartway transport partnership goals
    EPA SmartWay Transport Partnership: More Sustainable Logistics ProfileGoals

    • Reduction Goals:

    • Fuel consumption from trucks and rail delivering freight

    • Operating costs associated with freight delivery

    • Emissions of CO2 (30 million metric tons)

    • Emissions of NOx (commonly known as smog)

    • Particulate Matter (PM) serious health and environmental effects

    • Environmental goals:

    • Reduce spend on fuel (and dependence on oil imports)

    • Better understand emissions and environmental footprint

    • Contribute to corporate vision for environmental responsibility

    • Demonstrate our commitment to the environment publicly

    • Our commitment to Smartway includes:

    • Define percentage of freight shipped (or received) by SmartWay Partnership carriers

    • Measure greenhouse gas emissions

    • Increase the percentage of freight shipped (or received) to score at least 50% in 3 years

    • Develop action plans detailing how goal will be achieved

    • Submit goals and action plans to the EPA within 6 months of signing (report annually)


    Epa smartway transport partnership jci smartway profile and focus areas
    EPA SmartWay Transport Partnership: More Sustainable Logistics ProfileJCI SmartWay Profile and Focus Areas

    • Carrier Focus Areas:

    • Engine Idling

    • Top Speed Governing

    • Tire Pressure

    • Improved Aerodynamics

    • Use of Bio-diesels / Alternative Fuels

    • Route Planning


    Sustainability goals within our supply chain1
    Sustainability Goals Within Our Supply Chain More Sustainable Logistics Profile

    • Reduce our Global Environmental Footprint (e.g., carbon, waste)

    • Work with our Suppliers to Improve the Eco-Efficiency of the Supply Chain

    • Travel focus:

    • Decrease travel (video conference, other)

    • Shift Modes => Air to Rail

    • Downsize car rentals

    • Shift to “Sustainable Hotels”

    • Airline initiatives

    21


    Types of travel ghg s at jci air
    Types of Travel GHG’s at JCI--air More Sustainable Logistics Profile

    Car measurements: # of car rentals * 96 miles per rental day, assumes 23 mpg, assumes 2.2 days per rental

    Hotel nights: # of trips * 2.2 nights per trip, GHG estimated generically


    Travel ghg reduction activities moving forward
    Travel GHG Reduction Activities Moving Forward More Sustainable Logistics Profile

    ►Telepresence/Halo: Higher approval on impacted routes, currently in review by Bruce McDonald. Recommended Milwaukee/Detroit/Shanghai/Hong Kong/ Burscheid/ Hannover/Brussels/Bratislava/Monterrey/Aldershot

    ►Car rental: Reduce mpg rate through current Avis contract—reduced involuntary upgrades from 83% to 56%--upgrades now normally to full-size not SUV

    ►Car Rental policy: changed policy to smaller cars

    ►Airline: Have negotiated new rates with SNCF on Paris/Strasbourg (one of our top European routes) and shifted some traffic from air to rail.

    ► Last RFP has requested airlines to commit to CO2 reductions/mile of 1%/year—have buy-in from UA & DL

    ►Rail: Changed policy on use of rail for AE Europe (Rail = 1/8 of air on high-speed rail routes

    ►Hotels:Have requested hotel suppliers on RFPs to list sustainable devices, e.g. in-room energy card switch

    ►Requested hotel suppliers to supply energy data (low response)

    ►Working with industry group to set hotel sustainability measurement standards

    ►Meeting group is focusing on sustainable menus for meetings

    ►Demand management: Airweb is making this more visible—includes CO2 measurements on travel docs.

    23


    Vehicle fleet ghg reduction update

    Vehicle Fleet GHG Reduction Update More Sustainable Logistics Profile


    Sustainability goals within our supply chain2
    Sustainability Goals Within Our Supply Chain More Sustainable Logistics Profile

    • Reduce our Global Environmental Footprint (e.g., carbon, waste)

    • Work with our Suppliers to Improve the Eco-Efficiency of the Supply Chain

    • JCI Vehicle Fleet Focus Opportunities:

    • Increase Mileage Efficiency via vehicle selection (hybrids, engine size, diesel)

    • Driver education

    • Route planning

    25


    Us vehicle fleet ghgs by business unit
    US Vehicle Fleet GHGs by Business Unit More Sustainable Logistics Profile

    JCI has approximately 18,000 fleet vehicles globally.

    26


    Ghg reduction activity hybrid vehicles
    GHG Reduction Activity: More Sustainable Logistics ProfileHybrid Vehicles

    Escape Hybrid

    Uplander

    ► Plans for FY2010

    Vs.

    3.2 tons CO2e/vehicle/yr

    5.5 tons CO2e/vehicle/yr

    • Approximate 42% decrease from non-hybrid vehicle use within JCI fleet

    • Have 15 Ford Escape Hybrids, avoid approximately 30 tons CO2e/yr by FY2009

    27

    Johnson Controls


    Ghg reduction activity hybrid vehicles1
    GHG Reduction Activity: More Sustainable Logistics ProfileHybrid Vehicles

    FY2009

    FY2010

    FY2011

    FY2012

    FY2013

    Fleet Hybrids

    15

    115

    215

    315

    415

    +100

    Annual Addition

    +100

    +100

    +100

    +100

    115

    215

    Total Hybrids

    315

    415

    515

    -930

    -250

    -480

    -700

    -1,160

    Avoided tons CO2e

    % Reduction of Total

    Fleet Footprint*

    0.3%

    0.6%

    1.1%

    0.9%

    1.4%

    ► Plans for FY2010

    Approximate $500,000

    in fuel savings

    • Add 100 Ford Escape Hybrids

    • Estimated avoidance of 220 tons CO2e/yr

      If this trend continues:

    By 2012, considering BOTH GHG reduction opportunities,

    a potential 3% reduction & approximate $1 M in fuel savings

    28


    Fleet ghg reduction activities moving forward
    Fleet GHG Reduction Activities Moving Forward More Sustainable Logistics Profile

    Action items being pursued:

    ► Hybrid vehicle implementation in systems fleet

    ► Considering alternate vehicles for service fleet

    ► Driver educational/training program

    -(‘Driving Green Competition”)

    ► Shifting of vehicles within categories

    -Engine size reduction –6 cyl to 4 cyl

    -Gasoline to Diesel

    Further study required:

    ► Engine Idle Monitoring

    ► Route planning (GPS, ROC, no left turns)

    29


    ad