rutgers business school - 2014 sam walton college of business case competition presentation

Team

Bravo

▪

▪

▪

Our plan aims to save

Optimizing Upstream and at DCs

Driving Efficiency

Data Insights

$11.6M 29,683

2O.7M

Deliver more cases; drive fewer miles

Key recommendations:

▪ Order combination to reduce less-than-truck-load(LTL)

▪ Increase PO accuracy to reduce idle time at outbound

Every day

▪ They leave behind 6,900 to 17,250 cases

▪ Emptiness ranges from 50% to 90% per truckload

▪ Coordinate with operation office to map out stores en route

▪ Combine orders for stores en route to make a full truckload

Solutions

Challenges

Solutions

▪

▪ Incorrect delivery

▪ Non-scannable label

▪

▪ Improve communication between

buyers, store associates, and suppliers

▪ $18.3M in cost savings

▪ PO Optimization

▪ Collaboration and communication

fuel

efficiency

1O% $35M

91K 26OO

$26M

IT metrics will be collected, quantified, and scored according to a

weighted averaged based on accepted best-practices and criteria.

DCs and individual drivers will be ranked according to their monthly sustainability scores.

▪ Bottom 1O% Drivers will be paired with a ride along coach to

teach sustainable driving techniques

◦ Professional coach

◦ Top-performing driver at the DC

Mentor program to improve performance where needed

The

data

exists

today

So, we’ll see

results in the

short term.

▪ $26M in cost savings

▪ Driver training

▪ Incentives

Optimize driver decisions on the road

Eliminate idling on Walmart properties

85,716

22

767

$301,729

Optimize driver decisions on the road

▪

▪

▪

▪

▪

▪

▪

Describe the data

Determine what highly efficient drivers do on specific

roads under specific conditions

Eliminate idling on Walmart properties

▪

▪

▪

▪

Eliminate idling on Walmart properties

▪ Reduce idle time by 50 percent

▪ Real-time feedback on the road

▪ Low power wireless technology on Walmart properties

$2B $2OOM $5B

▪ Walmart is already a thought and

sustainability leader.

▪ Challenge the industry and be

recognized for it.

▪ Implement key WAVE tech.

▪

▪

▪

Our plan aims to save

Thank

You

Order combination reduce less-

than-truckload (LTL)

Order combination reduce less-

than-truck-load(LTL)

0%

15%

38%

60%

65% 69%

80% 84.2%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2007 2008 2009 2010 2011 2012 2013 2015

Calendar year

Progress toward 2O15 goal

Potential Savings from Idle

Elimination FY12

FY 2012 Diesel Vs. APU usage

Fuel gallon increase 174,220 174,220

GPH at idle 1 0.12

Dollar per gallon 4 4

Fuel at idle 696,881.75 83,625.81

Next Steps

Quarter Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15 …

Opportunity 1: Optimized Upstream

• Training

Opportunity 2: Drivers’ Behavior

• Metrics Setting

• Training

Opportunity 3: Data Insight

• Technology Implementation

• Pilot Study

• Evaluation

• Full scale Implementation

Eliminate Extended Idle Time and Reduce Short

Idle Time by 50%

Average Short Idle Time in 2013 1.23%

Average Extended Idle Timing in 2013 0.18%

Total Engine Time (hours) 13937635

Total Short Idle time (hours) 171432.9

Total Extended Idle Time (hours) 25087.74

Total Idle Time(hours) 196520.7

Expected Savings (2014)

Average Short Idle Time 0.62%

Average Extended Idle Timing 0.18%

Total Engine Time (hours) 13937635

Total Short Idle time (hours) 85716.46

Total Extended Idle Time (hours) 25087.74

Total Idle Time(hours) 110804.2

Total Idle Time Saved 85716.46

Total Fuel Saved (gallons) 75430.48

Total Cost Saved (dollars) 301721.9

CO2 Saved 767.8823

Cars off Road 21.93949

Idle Time Savings

Reward Program Costs

10% increase incentive

$ 35,851,472.47 25% $ 8,962,868.12 $ 4,491,434.06 $ 4,471,434.06

How do we find the right people?

▪ Screen for sustainability commitment in the hiring process.

▪ Experience and Safety Record are important; so are green

tech experience, adaptability, and knowledge of green driving

techniques and measures.