Highway Speed Reduction, Driver Training and Progressive Shifting Emerge as Highest ROI Initiatives
December 11, 2012 (Dallas, TX) – Transplace, a leading provider of transportation management services and logistics technology, along with PepsiCo, the U.S. Environmental Protection Agency (EPA) and carriers, including J.B. Hunt, Con-way, Western Express, Smith Transport and Dart Transit, recently announced the results of a survey conducted of more than 65 transportation carriers to gain insight into the implementation of EPA’s SmartWay program and other fleet fuel efficiency initiatives. The survey results, presented during the Council of Supply Chain Management Professionals’ (CSCMP) 2012 annual conference in October, detailed which fuel-efficiency initiatives fleets are deploying, as well as implementation challenges and return on investment (ROI).
With transportation-related emissions accounting for a quarter of all greenhouse gas emissions in the United States, demand for corporate citizenship and leadership has increased. SmartWay offers information to help industry leaders make innovative carrier, modal and technology decisions that improve performance, save fuel and reduce costs. The SmartWay program delivers standardized tools and information needed to help the freight sector measure, benchmark and report supply chain environmental performance.
“Striving for cleaner, more efficient transportation is a key part of PepsiCo’s commitment to making environmentally sustainable practices part of our daily operations,” said Mike O’Connell, senior director fleet operations for PepsiCo’s Frito-Lay North America division. “Co-sponsoring this survey with Transplace led to valuable insights from the participating carriers that we believe will benefit leaders across the industry who are striving to make their fleets more efficient.”
Of the initiatives studied, the highest ROI came from highway speed reduction, driving training and progressive shifting. These actions – along with recording engine data for greater driver feedback – also were the most commonly implemented among the carriers surveyed. Additionally, many carriers are implementing aerodynamic mirrors and verified low rolling resistance tires. Other initiatives, including tire pressure monitoring systems and gap reducers, had a more limited deployment across the fleets. Some fleets have implemented such initiatives with expected ROI, and other fleets are either still evaluating these initiatives or have had more mixed results following implementation.
“We designed this survey, which grew out of the PepsiCo sustainability team, with key input from leading shippers and carriers such as PepsiCo, Con-way, J.B. Hunt and Western Express,” said Ben Cubitt, senior vice president, consulting and engineering, Transplace. “We will continue our commitment to this initiative by investing engineering resources to include more carriers in the survey, continuing to update and modify the survey, and conducting additional analysis in focus areas.”
Transplace is a non-asset, North America-based third party logistics (3PL) provider offering manufacturers, retailers, chemical and consumer packaged goods companies the optimal blend of logistics technology and transportation management services. From complete logistics management outsourcing to SaaS transportation management system (TMS) and supply chain network planning and design to high-quality brokerage services, Transplace has proven the ability to deliver both rapid return on investment and consistent value to customers. The company is recognized among the elite global 3PLs by a customer base that includes many of the largest shippers in the world. To learn more about Transplace, please visit www.transplace.com.