Meijer Delivers While Reducing Miles Driven and Fuel Used

Reducing vehicle miles traveled seems like an insurmountable challenge for a long-haul delivery service that supplies 185 retail super centers throughout the Midwest. Yet Meijer, Inc., based in Grand Rapids, Michigan, has increased profitability while reducing miles driven by 2.5 million miles in the past year, saving nearly 385,000 gallons of diesel fuel in the past year. Meijer is a stakeholder in Greater Lansing Area Clean Cities.

The key to its success is a proprietary Web-based e-log system that tracks route efficiency, driving speed, engine performance, fuel consumption, and idling time for each Meijer driver on the road. Idling time that goes over four minutes, for example, results in an exception report. Dave Hoover, Meijer director of logistics, says the e-log system gives management Web-based visibility of driver performance at all times, but he credits his drivers, who have an average of 20 years of seniority, with the success of the program. “We provide training from original equipment manufacturers about progressive shifting techniques and appropriate use of revolutions-per-minute bands. The success of these techniques is in driver performance.”

Meijer prides itself on supplying its stores with fresh produce seven days a week. As diesel prices rose over the past year, the company used established systematical criteria to model pickup and delivery scenarios. “We use our own fleet for about 40% of our deliveries and rely on third-party fleets for the remaining 60%,” says Hoover. “We use load modeling and frequency to determine whether we should pick up with our own truck or use a third party.” The Web-based systems the company uses maximize outbound trailer loads and vendor backhauls to reduce deadhead return trips. Meijer transports goods for other companies on routes that would otherwise mean empty return trips. The Web system also tracks idling time, and the company has been able to reduce its average idling time to under four minutes.

The current Meijer-owned fleet includes Volvo tractors with Cummins ISX engines. In the next year, the company expects to replace its older vehicles with automatic transmission vehicles. “Automatic transmissions will give us more control over speed, rpm bands and idling,” Hoover says. In addition, Meijer wants to purchase engines with selective catalytic reduction units designed to meet 2010 U.S. Environmental Protection Agency (EPA) requirements.

Meijer, Inc., was recently awarded the EPA SmartWay Environmental Excellence Award for its leadership in conserving energy and lowering greenhouse gas emissions from its transportation and freight activities. The company also received the Michigan Energy Independence Award presented by Greater Lansing Area Clean Cities, Detroit-Area Clean Cities Coalition, and the Clean Energy Coalition of Ann Arbor. Meijer was also recognized by the U.S. Secretary of Transportation for its efforts in reducing onroad truck traffic.

Hoover credits the maintenance and operations employees for the success of the program. “They work hard each day to conserve fuel,” Hoover says. “Our employees and customers can take pride in knowing our company has taken an aggressive, proactive approach in doing its part to support a cleaner environment.”