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Darwyn Jones Wal-Mart Transportation Environmental Sustainability October, 2006

Darwyn Jones Wal-Mart Transportation Environmental Sustainability October, 2006. “We’ve been dealing with jobs, healthcare, community involvement, product sourcing, diversity and environment from a defensive posture…”.

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Darwyn Jones Wal-Mart Transportation Environmental Sustainability October, 2006

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  1. Darwyn Jones Wal-Mart Transportation Environmental Sustainability October, 2006

  2. “We’ve been dealing with jobs, healthcare, community involvement, product sourcing, diversity and environment from a defensive posture…” “…when in fact they represent gateways for Wal-Mart in becoming the most competitive and innovative company in the world.” - Lee Scott, 21st Century Leadership, Oct 2005

  3. Wal-Mart Corporate Environmental Sustainability Goals To be supplied 100% by renewable energy • Stores 25% more efficient in 7 years • Fleet 25% more efficient in 3 years To sell products that sustain resources & environment • 20% supply base aligned in 3 years To create zero waste • 25% reduction in solid waste in 3 yrs

  4. Renewable Energy ZeroWaste SustainableProducts Today’s Networks

  5. Why? 1) To be “over-compliant” & respond to our “next critics” 2) Great Return On Investment ! 3) Population growth; consumption of natural resources has accelerated beyond even our belief! Right thing to do for our kids!

  6. Wal-Mart Environmental Sustainability Networks Food/Agriculture Textiles Construction Seafood Packaging Operations Jewelry Greenhouse Gas Global Logistics Alternate Fuel Forest Products Electronics China Chemical Intensive

  7. Global Logistics Environmental Sustainability Network Influence reduction in emissions across the Global Supply Chain • Identify/measure the “footprint” • Evaluate initiatives to implement Change the Game in US Transportation ! • +25% Fuel Efficiency 2007 • +100% Fuel Efficiency 2015 Reduce energy use & Recycle in DCs

  8. Wal-Mart Private Fleet • 8010 Driver Associates (4% annual turnover) • 1500 Maintenance Shop Associates • 1900 Office Associates • 42 terminals, 4 Regional Operation Centers • 6845 Tractors • 43,650 Trailers • 1 Billion Miles/Year • 1.8 Million Store Deliveries; • 1.3 Million Backhaul Loads from Suppliers • Safest Fleet in US (per ATA) 8 of last 9 years • 99.8% On-Time service level

  9. Transportation Efficiency • Choose channels that are most cost efficient and reliable • As a rule – optimized supply chains are most environmentally friendly • Avoid congestion risk by maintaining multiple channels or multiple distribution points

  10. Global Logistics Environmental Sustainability Network Influence reduction in emissions across the Global Supply Chain • Identify/measure the “footprint” i.e. delivery schedules, traffic issues etc • Evaluate initiatives to implement Change the Game in US Transportation ! • +25% Fuel Efficiency 2007 • +100% Fuel Efficiency 2015 Reduce energy use & Recycle in DCs

  11. +25% Fuel Efficiency 2007 • Fuel Efficient Tires 6% • APU 8% • Fuel Additive 1.6% • Weight Reduction .05% • Aero Package (Truck) 3% • Aero Package (Trailer) 6.25% • New Prostar Truck 4% • Other ???? Total: 28.9%

  12. Logistics Environmental Sustainability Wins! • Recycling Initiatives implemented • H-Cell Lift Truck Testing • Transportation EPA Smart Way Member • Clean Cargo – Sustainable Global Transportation Group Member • “APU” Truck Fleet implemented • 100,000 metric tons of CO2 eliminated • $22.5m saved annually (10 million gallons)

  13. +100% Fuel Efficiency 2015 Aerodynamics: (25%) • New Trailer Design • New Truck Platform Other Initiatives: • Regulations: Length / Weight / Speed • Training / Education • Operations: MT Miles / Avg. Distance / Doubles • Water Conservation

  14. +100% Fuel Efficiency 2015 Other Initiatives Continued: • Nitrogen Tire inflation • Hybrid Diesel/Electric • Exhaust Energy Recovery • Brake Energy Recovery • Driver Training • Propane Burn system - “Red Rooster” Boost system • Hydrogen injection • Electric APU • Tire Inflation/Goodyear Fuel Efficient Duels • Fleet segmentation

  15. Auxiliary Power Supply (APU)

  16. Aerodynamic Truck

  17. Auxiliary Power Units Reduces emissions No Idling Policy Saves fuel Driver comfort 100,000 Metric tons eliminated $25 million saved

  18. Toyota Prius Hybrid Vehicles in Corporate Fleet Civic Hybrid

  19. Baseline…Current Tractor / Trailer configuration 2005 2507…Possible next generation Tractor / Trailer Configuration / Still under evaluation

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