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Darwyn Jones Wal-Mart Transportation Environmental Sustainability October, 2006. “We’ve been dealing with jobs, healthcare, community involvement, product sourcing, diversity and environment from a defensive posture…”.

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Presentation Transcript
slide1

Darwyn Jones

Wal-Mart Transportation

Environmental Sustainability

October, 2006

slide2

“We’ve been dealing with jobs, healthcare, community involvement, product sourcing, diversity and environment from a defensive posture…”

“…when in fact they represent gateways for Wal-Mart in becoming the most competitive and innovative company in the world.”

- Lee Scott, 21st Century Leadership, Oct 2005

slide3

Wal-Mart Corporate Environmental Sustainability Goals

To be supplied 100% by renewable energy

  • Stores 25% more

efficient in 7 years

  • Fleet 25% more

efficient in 3 years

To sell products that sustain resources & environment

  • 20% supply base aligned in 3 years

To create zero waste

  • 25% reduction in

solid waste in 3 yrs

today s networks

Renewable Energy

ZeroWaste

SustainableProducts

Today’s Networks
slide5
Why?

1) To be “over-compliant” & respond to our “next critics”

2) Great Return On Investment !

3) Population growth; consumption of natural resources has accelerated beyond even our belief! Right thing to do for our kids!

wal mart environmental sustainability networks
Wal-Mart Environmental Sustainability Networks

Food/Agriculture Textiles

Construction Seafood

Packaging Operations

Jewelry Greenhouse Gas

Global Logistics Alternate Fuel

Forest Products Electronics

China Chemical Intensive

global logistics environmental sustainability network
Global Logistics Environmental Sustainability Network

Influence reduction in emissions across the Global Supply Chain

  • Identify/measure the “footprint”
  • Evaluate initiatives to implement

Change the Game in US Transportation !

  • +25% Fuel Efficiency 2007
  • +100% Fuel Efficiency 2015

Reduce energy use & Recycle in DCs

wal mart private fleet
Wal-Mart Private Fleet
  • 8010 Driver Associates (4% annual turnover)
  • 1500 Maintenance Shop Associates
  • 1900 Office Associates
  • 42 terminals, 4 Regional Operation Centers
  • 6845 Tractors
  • 43,650 Trailers
  • 1 Billion Miles/Year
  • 1.8 Million Store Deliveries;
  • 1.3 Million Backhaul Loads from Suppliers
  • Safest Fleet in US (per ATA) 8 of last 9 years
  • 99.8% On-Time service level
transportation efficiency
Transportation Efficiency
  • Choose channels that are most cost efficient and reliable
  • As a rule – optimized supply chains are most environmentally friendly
  • Avoid congestion risk by maintaining multiple channels or multiple distribution points
global logistics environmental sustainability network10
Global Logistics Environmental Sustainability Network

Influence reduction in emissions across the Global Supply Chain

  • Identify/measure the “footprint” i.e. delivery schedules, traffic issues etc
  • Evaluate initiatives to implement

Change the Game in US Transportation !

  • +25% Fuel Efficiency 2007
  • +100% Fuel Efficiency 2015

Reduce energy use & Recycle in DCs

25 fuel efficiency 2007
+25% Fuel Efficiency 2007
  • Fuel Efficient Tires 6%
  • APU 8%
  • Fuel Additive 1.6%
  • Weight Reduction .05%
  • Aero Package (Truck) 3%
  • Aero Package (Trailer) 6.25%
  • New Prostar Truck 4%
  • Other ????

Total: 28.9%

logistics environmental sustainability wins
Logistics Environmental Sustainability Wins!
  • Recycling Initiatives implemented
  • H-Cell Lift Truck Testing
  • Transportation EPA Smart Way Member
  • Clean Cargo – Sustainable Global Transportation Group Member
  • “APU” Truck Fleet implemented
    • 100,000 metric tons of CO2 eliminated
    • $22.5m saved annually (10 million gallons)
100 fuel efficiency 2015
+100% Fuel Efficiency 2015

Aerodynamics: (25%)

  • New Trailer Design
  • New Truck Platform

Other Initiatives:

  • Regulations: Length / Weight / Speed
  • Training / Education
  • Operations: MT Miles / Avg. Distance / Doubles
  • Water Conservation
100 fuel efficiency 201514
+100% Fuel Efficiency 2015

Other Initiatives Continued:

  • Nitrogen Tire inflation
  • Hybrid Diesel/Electric
  • Exhaust Energy Recovery
  • Brake Energy Recovery
  • Driver Training
  • Propane Burn system - “Red Rooster” Boost system
  • Hydrogen injection
  • Electric APU
  • Tire Inflation/Goodyear Fuel Efficient Duels
  • Fleet segmentation
slide21
Auxiliary Power Units

Reduces emissions

No Idling Policy

Saves fuel

Driver comfort

100,000 Metric tons eliminated

$25 million saved

slide26

Baseline…Current Tractor / Trailer configuration 2005

2507…Possible next generation Tractor / Trailer Configuration / Still under evaluation