asda chris hall
TRANSCRIPT
Our Sustainable Transport Journey 40% Fewer Emissions 2005-2009
September 29th
2009
Page 2
Backhaul
The Saving!Miles
10.8 million paGallons
1.15 million paCarbon
13,473 tonnes pa
The Initiative!Backhaul is where we collect shipments fromsuppliers for delivery back into our DC’s on ourtrucks.
We are able to offer a competitive yet highlyprofitable transport rate to our suppliers becausewe are filling an empty transport leg from ourstore back to our DC.
On average each backhaul load will result in a netsaving (ASDA and Supplier) of 90 miles.
In an average week through 2009 we will collect2,301 loads from over 130 different suppliers.
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Fronthaul
The Saving!Miles
2.8 million paGallons
0.3 million paCarbon
3,490 tonnes pa
The Initiative!Instead of returning empty after delivering to ourDC’s, our suppliers / hauliers collect and deliver astore load on their way home.
They are able to offer a competitive rate for theload because we are filling up an empty transportleg.
On average each fronthaul load will result in a netsaving (ASDA and Supplier) of 90 miles.
In an average week in 2009 we willsubcontract 1,000 loads to a community of 60different suppliers and / or hauliers.
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Vehicle Fill
The Saving!Miles
16.6 million paGallons
1.5 million paCarbon
20,689 tonnes pa
The Initiative!In January 2005 our average vehicle fill for astore delivery was 1,331 cases per trailer
In January 2009 our average vehicle fill for a store delivery is now 1,645 cases per trailer
We achieved this by engaging our transportplanning and warehouse loading teams, andimproving the accuracy of our cube data.
This has saved 3,155 loads per week from DC tostore on a like for like volume
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Rail
The Saving!Miles
7.5 million paGallons
0.64 million paCarbon
7,478 tonnes pa
The Initiative!Since 2002, from Daventry to Grangemouth; 9,000containers a year of product from our Midlands DC’sto our Scottish stores
Since 2003, from Grangemouth to Aberdeen; 3,500containers a year of product from our GrangemouthDC to our Aberdeen stores
Since 2007, from the Port of Tilbury to Wakefield 500 containers a year of imported produce fromSouth Africa for our Produce Centre in Wakefield
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Ambient Network Design
The Saving!Miles
12.1 million paGallons
1.3 million paCarbon
15,230 tonnes pa
The Initiative!In 2005 we realigned 5,000 SKU’s creating anetwork of 8 regional DC’s or spokes for fastmoving / high cube items, moving these itemscloser to our stores and reducing stem mileage.
The effect was to reduce our average storejourney length from 117 miles to 101 miles
In 2008 we consolidated our H&L operations intoone single NDC at Doncaster improving pallet filland trunking vehicle fill.
In 2009 we will consolidate our National Ambient operations into one NDC at Lutterworth & continueto increase spoke participation through SKU
alignment
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Clothing Network Design
The Saving!Miles
2.4 million paGallons
0.26 million paCarbon
2,991 tonnes pa
The Initiative!
Until now, Clothing distribution was managed through a network of 4 National DC’s. Key dependency wasinter depot trunking across that network.
Through a process of depot re-engineering & significant supply chain enhancements, that networkwill convert to 3 regional DC’s, resulting in a savingof 2.4m trunk miles per year.
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Teesport
The Saving!Miles
5.6 million paGallons
0.35 million paCarbon
4,100 tonnes pa
The Initiative!In March 2006 we opened an Import Centre atTeesport which enabled us to route imports forour Northern DC’s away from the Southeast portsto Teesport resulting in a shorter final roaddelivery.
Teesport is 310 road miles closer to our GeneralMerchandise NDC at Doncaster than Felixstowe.
In January 2009 we will commence short-seafeedering
from Felixstowe to Teesport, resulting in a saving of 1.6m miles per annum by shipping2,500 containers.
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Fuel Economy
The Saving!Miles
n/aGallons
0.87 million paCarbon
10,297 tonnes pa
The Initiative!From a base line of 8.7 MPG in 2003, fuel efficiencywill increase to 9.35 MPG in 2009.
Roll out of Isotrak on board computing systemwith enhanced Driver Style Management tocelebrate success and capture developmentopportunities
A change in truck specification to includeOpticruise automatic gear boxes to reduce theimpact of individual driver styles
A combination of CPC & NVQ implementation through 2009 will enhance the quality &consistency of our driver training
Page 10
Nitrogen Fridges
The Saving!Miles
n/aGallons
13,491 paCarbon
161 tonnes pa
The Initiative!In 2007 we developed and introduced 7 newrefrigerated trailers featuring an innovativenitrogen gas driven refrigeration system to trial.
The system is completely silent and generateszero emissions as the refrigeration process isdriven by gas pressure and not a diesel engine.
The trailers are operating successfully out of ourSkelmersdale CDC delivering chilled fresh foodsto stores in the Northwest.
As well as reducing our emissions these trailershelp us to be a better neighbour both at our DC’sand when delivering to stores at night
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Double Deck Trailers
The Saving!Miles
5.7 million paGallons
0.6 million paCarbon
7,029 tonnes pa
The Initiative!From our Import Centre at Teesport we operate afleet of 17 fixed floor double deck trailers forlong distance trunks to our DC’s, enabling 90%more product to be carried than a conventionaltrailer.
Within our clothing network and from our DC’s inDoncaster and Lutterworth we operate a fleet of55 moving floor double deck trailers on trunkingbetween DC’s enabling 70% more product to becarried than a conventional trailer.
We will double our fleet in 2010 to enable Double-
Deck delivery to our ambient stores. That will save over 25,000 journies
through 2010
Page 12
Home-Shopping Van Design
The Saving!Miles
1.75 million paGallons
0.103 million paCarbon
1,197 tonnes pa
The Initiative!Current van design has been in place since thestart of Home-Shopping operations in 1998 & untilnow has not been challenged.
In 2009, we launched our new van design that benefits from side load/unload, increased carryingcapacity & improved fuel efficiency. There will be 200 of these vans deployed through the next 12 months.
Current design delivers a maximum of 80 totes,with the new van design delivering 110. with lower box design also delivering potential fuel efficiency benefit of 10%.
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Summary..Fewer Miles
Area2009 Run
Rate2008 Incremental
Saving
2009 Forecast Incremental
Saving Comment
Backhaul 10,800,000 1,170,000 1,000,000 Was 1,971 loads per week in Jan 2008 & 2,151 in Jan 2009
Fronthaul 2,800,000 1,400,000 936,000 Was 400 loads per week in Jan 2008 & 600 in Jan 2009 (275 Fronthaul & 325 one-way haulage)
Vehicle Fill 16,570,000 3,360,000 1,720,000 Was 1,565 in Q1 2008 & 1,645 in January 2009
Rail 7,500,000 300,000 0 Additional IP activity into Normanton
& Grangemouth activity through more consistent 7 day operation
Food Network 12,120,000 0 920,000 All national ambient under 1 roof in 2009 & further SKU movement from National -
Local
Clothing Network 2,400,000 0 2,400,000
2009 see's the regionalisation
of our clothing operations. From 4 national centre's in 2008 to 3 regional centre's in 2009
Teesport 5,600,000 372,000 1,600,000 Was 8,400 containers in 2006, 12,000 containers in 2007 and 13,200 in 2008
Double Decks 5,700,000 1,400,000 1,750,00022 DD's in 2006, 42 DD's in 2007, 72 DD's in 2008. Base fleet remains at 72 in 2009, with additional 10 rental
HS Van Design 1,750,000 0 1,750,000 200 vans with 36% increased carrying capacity, saves 70 conventional vans
Total 65,240,000 8,002,000 12,076,000