GREEN SUPPLY CHAIN STUDY · Home Depot | CFS Consolidation ~12% of the orders for this study were...
Transcript of GREEN SUPPLY CHAIN STUDY · Home Depot | CFS Consolidation ~12% of the orders for this study were...
GREEN SUPPLY CHAIN STUDY REVEALS WAYS TO INCR EASE FREIGHT EFFICIENCY AND REDUCE EMISSIONS.
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WELCOME TO THE FREIGHT MATTERS 2020
WEBINAR SERIES
February 12, 2020
Covered Today
Welcome
Freight Matters!
The Home Depot Best Practices
ICCT Green Supply Chain Study
Q&A
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Today’s Speakers Leticia Pineda Buddy Polovick Harry Haney Kim Vaccaro
Researcher Team Leader Director Sr. Manager Import Operation
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Toward Greener Supply Chain:
How The Home Depot Reduces Its
Environmental Footprint and Costs
February 12, 2020
Home Depot | Import Overview
Industry Trade Lanes Top US Importers
❑ Home Depot is the 3rd largest US
importer
❑ Transpacific EB (Asia – North
America) lane is the largest
container shipping trade lane
❑ ~92% of THD volume transited via
the Transpacific EB corridor in
2017
Segment namg;
1. Chinn draya,ge
B
C
Origun nodlus
13 rac:taries in China: Supplier A: 1 factory Supplier B: 1 factory supplier C: n factories
DGstlinaUon n,c-dgs
wo port term inalS in Shenzhen metropoUta a~ (Shekou and Yantian)
Two port termin Is. in SJhenzJhen rnetropolitm 7 port t rminals in Los area (Sookoo and Yantian) Angeles/Long B. dh
7 port t. rminals in Los Angeles/Lon B dh
1 TSLD
4SDCs
7RDCs
BBQ griills
Lighting fixtures and equipment
109,430
2,111.764
1 ransload racl llty (TSU)} 1 stocicing distribution centar CSDC) i I'll Mira Loma
secs 7 rapid deployment centers (RDC)
615 stores
622 stores
4,453
4,295
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2
30,545
ll.821
Transportation modfi
~ l[R)
~ ~
0.28
0.01
Home Depot | Project Scope
Home Depot | Import Freight Flow
TSLD SDC RDC
Import Cross-Dock Stocking Distribution Center Rapid Deployment Center
Distribution Platforms
Home Depot | Dray Overview
~ 60% of
freight
flowed
through the
transload
facility
Home Depot | Inland Transport & Final Mile Delivery
Inland Transportation
Transload aggregates product
from different suppliers and
ships outbound to 4 SDCs
and 7 RDCs using 53’ Trailers
Final Mile Transportation
SDCs and RDCs
service 622 stores in
the western United
States
Home Depot | Utilization Initiatives
✓ Load Optimization Software
✓ Consolidated Freight Stations (CFS) at Origin
✓ Destination Transload Operations
✓ Floor Loading
Home Depot | CFS Consolidation
Supplier A = 1 Factory (Ceiling Fans)
Supplier B = 1 Factory (BBQ Grills)
Supplier C = 11 Factories (Lighting)
CFS Process
Home Depot | CFS Consolidation
❑ ~12% of the orders for this study were consolidated through CFS at
origin
❑ Supplier A & B ship +87% Full Containers ❑ Larger product type
❑ Production aggregated to 1 single factory in the region
❑ Supplier C shipped 22% through CFS location ❑ Smaller product type
❑ Product spread across 11 different factories
CFS Penetration
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ICCt THE INTERNATIONAL COUNCIL ON CLEAN TRANSPORTATION
Toward Greener Supply Chains:
Case study of a U.S. – China supply
chain
Leticia Pineda
Freight Matters webinar series
February 12, 2019
icct
r
THE INTERNATIONAL COUNCIL ON
Clean Transportat ion
Share of freight activity (tonne-km)
3%
Share of energy and CO2
emissions
0 .9 %
Share of NO. emissions
The analysis evaluates each supply chain link based on real-
world data
China
United States
Los Angeles/Long Beach
Shenzhen
92km 12,000km 57km
1,350km
SDC 300km
RDC 224km
1. China drayageProducts are shipped from
suppliers’s factories to Shekou/Yantian port
terminals in Shenzhen
2. MarineContainers with
products are shipped across the Pacific
Ocean to Los Angeles / Long Beach ports
3. U.S. drayage Containers are transported
from Los Angeles / Long Beach ports to transload
facility or closest distribution center
4. U.S. inlandAggregated products at
transload facility are sent to distribution centers
5/6. SDC/RDC
to storesFinal delivery from
distribution centers to stores
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icct THE INTERNATIONAL COUNCIL ON
Clean Transportat ion
The analysis considers three scenarios to evaluate emission
reduction strategies
▪ Conventional Scenario: Basic supply chain without strategies
considered in the green scenario, instead those strategies are replaced
by basic technology and operational practices.
▪ Green Scenario: Current supply chain considering improvements
already adopted (green strategies).
▪ Green Plus Scenario: Future supply chain with additional
improvements to those already implemented in the green scenario. To
consider implementation timeframe, we divide this scenario into:
▪ Short-term (2020)
▪ Medium-term (2025)
▪ Long-term (2030)
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The study categorize strategies in three groups
Clean &
Efficient
Logistics
Clean &
Efficient
Modes
Clean &
Efficient
Equipment
Strategies to improve
supply chain
efficiency through
reduction of vehicle
activity.
Strategies to leverage
the use of the
cleanest and most
energy efficient
modes.
Strategies to improve
truck/rail/vessel
efficiency through
technologies or eco-
driving.
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We evaluated a number of strategies applied to specific
segments under different scenarios
Strategy Type Strategy Supply chain Link
China drayage Marine US drayage US inland SDC to Store RDC to Store
Clean and
efficient
logistics
Cargo consolidation (Consolidated Freight
Station)
Cube optimization
Transloading (network reconfiguration)
Floor loading
Direct routing + Short sea shipping
Schedule optimization (port and ship)
Clean and
efficient
modes
Truck to rail
Transloading (container switch)
Move to larger ships (Tripple E etc. )
Clean and
efficient
equipment
Shore power
Slow steaming
Vessel technology
Vessel operations
Truck technology
Truck electrification
Rail technology
Driver training
Strategy applied to Green scenario
Strategy applied to Green plus scenario
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icct
0 % Land Marine
,-..
* .._, -10% 0 ...
Ill -20% C (1) u V) -30% Ill C 0 -40% ..... C (1) -50% > C 0 u -60%
E 0 -70% ... -C 0 -80% ..... u ::::s -90% 'O (1)
c::: -100%
-27%
-67%
THE INTERNATIONAL COUNCIL ON
Clean Transportat ion
NOX PM
l•I~J (i) l•I~J (i) Land Marine Land Marine
-25% -23%
-70% -81%
GREEN SCENARIO
■ Logistics strategies
■ Modal strategies
■ Equipment strategies
GREEN PLUS SCENARIO
■ Logistics strategies
Modal strategies
Equipment strategies
Total reduction in Green scenario
Total reduction in Green Plus scenario
Summary of energy and emissions reduction potential
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Energy and CO2 NOx PM
- 0% ~ ~ 0 ·;: -10% ca C Cl)
I (.) (II
-20% iii C 0 :;:
-30% I C
~ C 0 0 -40% E 0 ... - -50% C 0 :;: (.) ::, -60% "C Cl)
a:
-70%
-80%
-90%
-100% ■ I I
C E E E Q) ... C E E E C E E E Q) Q)
~ .sl .sl .sl (!} t e o,
0 :, § .s::. '6 (/) ....J Q)
:E
~ .sl .sl .sl ~ ~ ~ ~ (!} t e o, (!} t:: E Ol 0 :, § 0 :, C
.s::. '6 .s::. '6 0
(/) ....J (/) ....J Q) Q)
:E :E
Green Plus Green Plus Green Plus
CFS ■ Cube optimization ■ Floor loading Driver training ■ Truck technology ■ ZE trucks
icct THE INTERNATIONAL COUNCIL ON
Clean Transportat ion
factors
Consolidated containers wlt'h higher
utlll2ation factor
Fuel-saving technology areas
Telematics, intelligent controls, and driver aids
Improved engine
Idle reduction technology
Advanc:~ transmission and dnvll:!hne
Reduced accessory loads
Enhanced aerodynami~
Weight reduction withmatll:!rial substitution
Reduce-cl rolling resistance tires and
inNation control syst@ms
China drayage energy and emission savings
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0%
.2 ;:a -10%
~ Ill -20% iii a ~ Ill ~ 8 E 0 ..
-30%
-40%
i -50%
ti ::I
! -60%
-70%
-80%
-90%
-100%
■ Schedu li ng
■ S hip size
Energy and CO2
C: Q)
!!:! (!)
I
E !Ii ~ 0
ti,
E ,S:l E :::,
'g ~
Green Plus
■ Ship techno logy
■ Shore power
NOx
C: Q)
!!:! (!)
E m ~ 0 .c (J)
E $ E :::,
'g ~
E C1)
6, §
Green Plus
■ Fuel savings ■ China 100-nm ECA ■ US ECA
icct THE INTERNATIONAL COUNCIL ON
Clean Transportat ion
PM2 .. 5
I
E m ~ 0
ti,
E $ E :::,
'g ~
Green Plus
■ Global sulfur cap China 200-nm ECA
1,I
Op■ratlonal
Weather routing 1•4% Autopilot upgrade 1-3% Speed reduction 10-30%
Thrust efficiency Propeller polishing 3-8% Propeller upgrade 1-3% Prop/rudder retrofit 2-6%
'•
Auxiliary pow■r
Efficient pumps, fans 0-1% High efficiency lighting 0-1% Solar panel 0-3%
Engln• ■fflclency Waste heat rec.overy 6-8% Engine controls 0-1% Engine common rail 0-1% Engine speed de-rating 10-30%
A■rodyna mlc1 Air lubrication S·1S% Wind engine 3-12% Kite 2-10%
Hydrodynamic• Hull cleaning 1-10% Hull coating 1-S% Water flow optimization 1-4%
Marine energy and emission savings
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Energy and CO2 NOx PM
-- 0% ~ ~ 0
I ·;:: -10% C'CI C G) () Ill
-20% ia C 0 ;:
-30% I C
~ C 0 0 -40% I E 0 ... - -50% C 0 ;: () :::,
-60% "O G) • a:
-7(J%
-80%
-90%
- I I ■ I -100%
C: § § § Q,)
~ ~ ~ ~ (.'J t:: E Cl 0 ::::, C: .c 'o
0 (f) ...J
Q,)
~
C: E E E C: E E E Q,) ... Q,)
~ ~ ~ ~ ~ ~ ~ ~ (.'J t:: E Cl
(.'J t:: E Cl 0 C: 0 ::::, C: .c ::::, 0 .c 'o
0 (f) 'o ...J (f) ...J
Q,) Q,)
~ ~
Green Plus Green Plus Green Plus
■ Floor loading ■ TSLD ■ Cube optimization CFS Driver training ■ Truck technology ■ ZE trucks
icct THE INTERNATIONAL COUNCIL ON
Clean Transportat ion
Containers with low utl l lz.atlon
factors
( )
COn$Olldated container$ with higher
utlllzatlon factor
Fut l·1avlng technology lrHI
Telcmatics, Intelligent controls., and driver aids
Improved engine
Idle reduction technology
Advanced transmission and drivelme
Reduced accessory loads
Enhanced aerodynamics
Weight reduction with mater.al substitution
Red uce-d rel ling roslstance t1ros and
ln~lation control systems
U.S. drayage energy and emission savings
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Energy and CO2 NOx PM
-- 0% ~
I ■ ~
I 0 ·;: -10% Ill C Cl) u 1/1 -20% ■ iii C I I I -0
:;::; -30% C Cl) > C 0 -40% (.)
E I 0 ... -50% -C 0 :;::; u -60% ::, -0 Cl) a:
-70%
-80%
-90%
-100% C: E E E C: E E E C: Q) Q) Q) E E E ~ .lJl .lJl .lJl ~ .lJl .lJl .lJl ~ .lJl .lJl .lJl (;) t E (;) (;) Ol t E Ol t E Ol
0 C: 0 C: .c :::, 0 :::, 0 C:
'6 .c 0 .c :::, 0 CJ) ...J CJ) '6 ...J '6
Q) CJ) ...J
Q) Q)
~ ~ ~
Green Plus Green Plus Green Plus
■ TSLD ■ Cube optimization CFS ■ Floor loading Driver training ■ Truck technology ■ ZE trucks ■ Rail technology
0 I CC t THE INTERNATIONAL COUNCIL ON
Clean Transportat ion
N\N
•
■ Shift to rail
Containers with low utl l lz.atlon
factors
( )
COn$Olldated container$ with higher
utlllzatlon factor
U.S. inland energy and emission savings
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RDC to store energy and emission savings
SDC RDC
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Key takeaways
▪ Sustainable practices and green freight programs like
SmartWay are delivering real cost savings, efficiency gains
and environmental benefits.
▪ Many of the green strategies are already being
implemented by companies proving that they work,
reducing uncertainty and cost.
▪ Operational and vehicle technologies are both necessary
▪ Collaboration among stakeholders is key!
▪ Other companies and supply chains can leverage from the
work developed in other projects by sharing experiences
and best practices
▪ Data analysis is a powerful tool to inform decision making
processes
▪ Robust assessments using private data are possible
without disclosing sensitive information
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Check out the full report at the link below:
https://theicct.org/sites/default/files/publications/ICCT_
Toward-Greener-Supply-Chains_201909.pdf
Thank you!
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~ , · artWay· ~ S'"!JROTECTION AGE NCY U.S. ENVIRONMENTA
Questions?
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