Jack AmpujaSupply Chain Optimizers
Niagara University
Green program motives
Cost Reduction Regulatory Compliance Carbon Footprint Competitive Advantage
24%
31%
48%
49%
51%
0% 10% 20% 30% 40% 50%
% of Companies
Rising cost of
inbound/outbound
transportation
Current/expected govt.
compliance
Competitive
advantage/differentiator
Rising cost of energy/fuel
Desire to be a thought leader
for green/sustainability
9%
19%
28%
33%
36%
37%
41%
43%
48%
64%
68%
0% 10% 20% 30% 40% 50% 60% 70%
% of Companies
Improve employee satisfaction/attract talent
Reduce use of toxic materials
New customers or product lines
Reduce emissions
Be more fuel efficient
Increase use of recyclables/reusables
Improve visibility into green supply chain
Reduce wast/improve disposal methods
Improve profits
Enhance social responsibility
Reduce overall business costs
Transportation & Logistics Costs: 2% decrease versus 1% increase for Industry Average, and 4%
increase for Laggards Energy Costs: 6% decrease
versus no change for Industry Average and 7% increase for Laggards
Operations and Facilities Costs: 2% decrease versus no change for Industry Average and 4%
increase for Laggards Supply Costs: 2% decrease
versus no change for Industry Average and 6% increase for Laggards
35%
24%
37%
38%
39%
39%
42%
45%
46%
33%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
% of Companies
Redesign aspects ofpackaging, product design
Improve waste/disposalmgmt (recycling, reuse,reverse logistics, etc.)
Focus on emission/carbonfootprint reduction strategies
Redesignprocurement/sourcingstrategy around green
Redesign aspects oflogistics/transport system
Best-in-class All others
Surpassed stated corporate goal by achieving 25% increase in efficiency between 2005 & ‘08
Used technology for Reducing vehicle weight
1000 lbs = .10% increase in mpg Increasing weight per truckload More efficient routing of trucks
Goal is to double fleet efficiency by 2015 from 2005 standards
Inventory planning systems use averages to define truckload: weight, cube, pallet spots Many trucks run below max about 5%
New software allows for real ‘full’ truckloads while staying in legal limits
Can also plan ‘best’ pallet loading techniques
Used by companies such as Procter & Gamble, Kraft, Nestle, Smuckers
Patented tractor from HydrogenFS.com HFS is a group of trucking industry
veterans who pooled their knowledge on efficiency to create the Green Machine
Key component = Jetstar hydrogen booster invented & manufactured in Pickering ON
Engine & transmission are re-manufactured units: less expensive + more green
Uses “jetstar fuel”…specially treated water Electrifying water creates hydrogen &
oxygen Gases are piped to intake manifold There is no hydrogen storage in truck…
gases are burned as soon as they are created
Hydrogen + oxygen give engine power boost & burn diesel fuel completely reducing emissions to almost nothing
Engine is most widely sold Detroit Diesel ever
Larger single tires filled with nitrogen All aluminum wheels – including 5th wheel Air deflectors on side & top Carbon fiber springs Alan Bishop electric engine fan system Jetstar hydrogen booster for engine Synthetic oil is changed after 100,000
miles
Engine burns fuel more completely generating more power & less carbon output
All technology used is available to any firm Green Machine was conceived by trucking
industry veterans and assembled in Michigan Verified national test shows tractor hauling
loaded trailer averages 8 mpg…30% gain with emissions below 2014 EPA standards Latest test = 10 mpg
“The hydrogen-injected trucks will enable a 15% increase in fuel economyand exceed vehicle emission standards by 11%. These vehicles inject small amounts of hydrogen and oxygen into the engine’s air intake, resulting in a shorter burn time that uses less fuel and produces cleaner emissions. The company expects to save more than 4,200 gallons of fuel per hydrogen truck and eliminate over 216 metric tons of greenhouse gas emissions annually.”
SaaS - Software as a service is major benefit for smaller companies Gets them into the game at low cost Far surpasses performance of manual systems TMS becomes viable for almost all firms Lets user focus on business issues rather than
IT Leading SaaS interface with major ERP
packages
$000 Transport Inv & OH Total %
Baseline 34,500 19,750 54,250100
Locations 26,800 22,500 49,300 91
Least 30,600 13,400 44,000 81Final 29,900 15,300 45,200 83
Lowest cost network Best service network Optimal combo of cost and service Lowest carbon footprint network Management now has a $ target between
lowest cost and lowest carbon They now know what it will cost the company
to operate a green network
Adding carbon footprint weighting to model allows for comparing environmental impact of various scenarios
Comparing total miles of different logistics networks – inbound & outbound – allows for identification of lowest miles of movement
Calculates $ of environmental improvement