Rutgers Business School - 2014 Sam Walton College of Business Case Competition Presentation
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Transcript of Rutgers Business School - 2014 Sam Walton College of Business Case Competition Presentation
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Team
Bravo
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▪
▪
▪
Our plan aims to save
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Optimizing Upstream and at DCs
Driving Efficiency
Data Insights
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$11.6M 29,683
2O.7M
Deliver more cases; drive fewer miles
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Key recommendations:
▪ Order combination to reduce less-than-truck-load(LTL)
▪ Increase PO accuracy to reduce idle time at outbound
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Every day
▪ They leave behind 6,900 to 17,250 cases
▪ Emptiness ranges from 50% to 90% per truckload
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▪ Coordinate with operation office to map out stores en route
▪ Combine orders for stores en route to make a full truckload
Solutions
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Challenges
Solutions
▪
▪ Incorrect delivery
▪ Non-scannable label
▪
▪ Improve communication between
buyers, store associates, and suppliers
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▪ $18.3M in cost savings
▪ PO Optimization
▪ Collaboration and communication
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fuel
efficiency
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1O% $35M
91K 26OO
$26M
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IT metrics will be collected, quantified, and scored according to a
weighted averaged based on accepted best-practices and criteria.
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DCs and individual drivers will be ranked according to their monthly sustainability scores.
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▪ Bottom 1O% Drivers will be paired with a ride along coach to
teach sustainable driving techniques
◦ Professional coach
◦ Top-performing driver at the DC
Mentor program to improve performance where needed
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The
data
exists
today
So, we’ll see
results in the
short term.
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▪ $26M in cost savings
▪ Driver training
▪ Incentives
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Optimize driver decisions on the road
Eliminate idling on Walmart properties
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85,716
22
767
$301,729
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Optimize driver decisions on the road
▪
▪
▪
▪
▪
▪
▪
Describe the data
Determine what highly efficient drivers do on specific
roads under specific conditions
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Eliminate idling on Walmart properties
▪
▪
▪
▪
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Eliminate idling on Walmart properties
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▪ Reduce idle time by 50 percent
▪ Real-time feedback on the road
▪ Low power wireless technology on Walmart properties
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$2B $2OOM $5B
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▪ Walmart is already a thought and
sustainability leader.
▪ Challenge the industry and be
recognized for it.
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▪ Implement key WAVE tech.
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▪
▪
▪
Our plan aims to save
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Thank
You
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Order combination reduce less-
than-truckload (LTL)
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Order combination reduce less-
than-truck-load(LTL)
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0%
15%
38%
60%
65% 69%
80% 84.2%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2007 2008 2009 2010 2011 2012 2013 2015
Calendar year
Progress toward 2O15 goal
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Potential Savings from Idle
Elimination FY12
FY 2012 Diesel Vs. APU usage
Fuel gallon increase 174,220 174,220
GPH at idle 1 0.12
Dollar per gallon 4 4
Fuel at idle 696,881.75 83,625.81
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Next Steps
Quarter Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Q3
15
Q4
15 …
Opportunity 1: Optimized Upstream
• Training
Opportunity 2: Drivers’ Behavior
• Metrics Setting
• Training
Opportunity 3: Data Insight
• Technology Implementation
• Pilot Study
• Evaluation
• Full scale Implementation
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Eliminate Extended Idle Time and Reduce Short
Idle Time by 50%
Average Short Idle Time in 2013 1.23%
Average Extended Idle Timing in 2013 0.18%
Total Engine Time (hours) 13937635
Total Short Idle time (hours) 171432.9
Total Extended Idle Time (hours) 25087.74
Total Idle Time(hours) 196520.7
Expected Savings (2014)
Average Short Idle Time 0.62%
Average Extended Idle Timing 0.18%
Total Engine Time (hours) 13937635
Total Short Idle time (hours) 85716.46
Total Extended Idle Time (hours) 25087.74
Total Idle Time(hours) 110804.2
Total Idle Time Saved 85716.46
Total Fuel Saved (gallons) 75430.48
Total Cost Saved (dollars) 301721.9
CO2 Saved 767.8823
Cars off Road 21.93949
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Idle Time Savings
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Reward Program Costs
10% increase incentive
$ 35,851,472.47 25% $ 8,962,868.12 $ 4,491,434.06 $ 4,471,434.06
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How do we find the right people?
▪ Screen for sustainability commitment in the hiring process.
▪ Experience and Safety Record are important; so are green
tech experience, adaptability, and knowledge of green driving
techniques and measures.