Canadian Retailer - The Supply Chain & Logistics Issue - 43

WALMART GOES BIG ON EMISSION REDUCTION
Walmart has long been among the leading retail
players pursuing a sustainable agenda, from
reducing packaging and diversion of waste from
landfill, to the use of renewable energy and
greenhouse gas (GHG) emission reduction.
Since Walmart established a goal to reduce
emissions in 2005, it has eliminated a total of over
40 million metric tonnes of emissions throughout its
global supply chain, reports Micah Ragland, Director,
Sustainability Communications for Walmart.
Walmart's newest effort is Project Gigaton, a global
plan to reduce emissions by one gigaton (1 billion
metric tonnes) by 2030. That is the equivalent of
removing more than 211 million passenger vehicles
in a year, according to the U.S. Environmental
Protection Agency's greenhouse gas equivalency
calculator. While the emissions mandate spans many
aspects of operations, transportation innovation is a key component
in meeting the company's latest sustainability goals, Ragland says.
Brandon Schott, Manager, Continuous Improvement, Transportation, for Walmart Canada, says Canadian operations are one of 27
global operations involved in achieving the project's goal. "We will
do our best to meet it by continuing to focus on fleet efficiency,
and expanding efforts around equipment and alternative fuels."
Walmart has been working on a number of initiatives in its quest
for continuous improvement, including:
* Advanced systems to improve routing efficiencies and optimize
frequency and load fills in order to reduce empty miles and
increase utilization
* A trial program in Ontario and Alberta with super cube (60 foot)
trailers which increases capacity per load and reduces emissions
by up to 14 per cent
* Deploying dual 53-foot LCVs (long combination vehicles) on
delivery routes between Mississauga and Cornwall, which
reduces GHG emissions by up to 40 per cent

achieved through technology, some through process improvement, and some through innovation."
Given its national scope, backhaul is an integral part of improving efficiency on the road, he
explains. "In more remote regions, we often look
for backhaul opportunities with vendors once
we've done a store delivery so the driver has very
few empty miles."
He notes that the amount of cubic feet per load
on outbound shipments is a key measure. "Cost
per mile, cost per cube-these are the measures
that drive us. We're constantly looking at what innovations are possible." One of those is route optimization software that converts orders to cubic
feet and allows planners to minimize miles for
drivers while optimizing loads.
In addition, anything going to stores or coming
offshore is floor loaded, adding almost double the
capacity to shipping containers. "The further the distance you travel, the greater the savings," Fast says.
www.retailcouncil.org/cdnretailer

* Implementing 105 km per hour speed
limit and automatic transmissions in all
trucks to improve fuel efficiency
* Equipping all trucks with GPS and
telematics capabilities
* Installing battery operated auxiliary
power units in trucks to heat cabs in
order to minimize idling in winter
* Establishing anti-idling rewards
programs for drivers
"We're also paying close attention to
alternative fuels," Schott says "Right now
all of our vehicles are running on diesel,
but we are testing fully electric shunt
trucks in the trailer yards, and are watching
Tesla closely to see what's going on in the
electric vehicle market. We expect to see
the first electric tractors hit the market in
the next 24 to 36 months."

In some instances, Canadian Tire has converted to 60-foot containers versus the standard
53-foot, size. "That doesn't sound that innovative,
but adding those extra feet is a game-changer for
us because we gain a net 13 per cent increase in
capacity," Fast notes.
One of its biggest innovations on the road
has been longer combination trailers. "When we
introduced those in 2009, we were the first carrier
in Ontario to do it," he says.
Forecasting is equally critical in ensuring
transportation efficiency, he adds. "Analysts work
with merchants to forecast to the SKU level 26
weeks ahead. The software transmits that data to
our suppliers and vendors for loading into their
MRP [material requirements planning] system.
Store deliveries are also based on our forecasts.
That kind of supply chain visibility is critical.
Simply put, the more data and ability to measure,
the greater the visibility and efficiency."

THE SUPPLY CHAIN & LOGISTICS ISSUE

| CANADIAN RETAILER | 4 3

http://www.retailcouncil.org/cdnretailer

Table of Contents for the Digital Edition of Canadian Retailer - The Supply Chain & Logistics Issue