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Associated Grocers of Maine Inc.
Fuel Costs Nearing $80 a Barrel
How can AGME absorb the cost Without:
• Increasing Cost of Goods?
•Decreasing The Number of Deliveries?
•Negatively Effecting The Customer?
“Maximizing The Fleet”What can we gain?
Classification Guide Line
• C-Stores Considered as > $5000 Per Week.
• Superette Considered as < $5000 > $10000 Per Week.
• Supermarket Considered < $10000 Per Week.
CURRENT AGME CUSTOMER BASE
Ret
aile
r C
ount
13
4
Ret
aile
r C
ount
77
Ret
aile
r C
ount
84
0
20
40
60
80
100
120
140
Customer Count
C-Store Superette Supermarket
Vehicle Usage46
21
17
2321
0
25
19
28
0
1717
8
242526
36
22
36
24
4547
05101520253035404550
943
944
756
757
758 58 59 60 61 62 63 64 657
107
108
109
110
980
886
887
888
889
Fleet Utilization%Used
22 Tractor Trailer Combinations
Weekly Fixed / Variable Per Tractor Trailer
$719.54$730.25$732.97
$771.27$636.37
$707.40$717.73
$700.08$732.57
$714.45$786.12
$712.41$751.44
$809.96$781.20
$756.05$658.05
$694.04$788.53
$758.14$727.67
$763.41
$0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00 $900.00
976245
948655
948654
323462
323463
948651
948653
323457
323460
304932
323464
304931
323461
323466
323458
976246
323465
304933
416058
938107
416059
938108
Uni
t #
IncludesFixed Asset
Mileage Charge.Refer Charge
Weekly Fuel & Driver Wage/Benefit
$1,276.52$1,008.00
$1,515.36$1,582.28
$1,380.40$1,396.92
$1,469.16$165.20
$1,164.24$1,755.32
$1,167.88$0.00
$1,634.92$1,564.64
$1,370.32$1,592.36
$1,577.80$1,548.12
$1,613.08$1,605.801602.16
$0.00
$0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 $1,600.00 $1,800.00 $2,000.00
976245
948655
948654
323462
323463
948651
948653
323457
323460
304932
323464
304931
323461
323466
323458
976246
323465
304933
416058
938107
416059
938108
Uni
t #
IncludesFuel Costs
Driver WagesBenefits
WEEKLY GRAND TOTAL BY TRUCK AND DRIVER
$2,687.89$2,590.69
$2,930.72$3,125.59
$2,164.67$2,877.99$2,904.10
$1,276.00$2,469.02
$3,014.34$2,786.47
$1,239.27$3,034.91
$3,292.73$3,101.51
$3,198.48$2,406.46
$3,348.86$3,177.88
$3,033.91$3,022.68
$1,494.01
$0.00 $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $3,000.00 $3,500.00 $4,000.00
976245
948655
948654
323462
323463
948651
948653
323457
323460
304932
323464
304931
323461
323466
323458
976246
323465
304933
416058
938107
416059
938108
Uni
t #
The Average Hourly Rate By Truck & Driver = $55.00
C-Stores Within 125 Mile Radius
4734
142
0
20
40
60
80
100
120
140
160
Leg Time
C-StoreSuperetteSupermarket
85
37
125
0
20
40
60
80
100
120
140
Unloading
C-StoreSuperetteSupermarket
Breakdown By Leg Time & Unloading Time
Material Handling Products
$377,520
$204,776
$764,039
$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000
Annual Cost
C-StoreSuperetteSupermarket
Annual Cost By Classification
C-Store Statisticsin >125 Mile Class
Weekly Cubic Volume Equates To Approximately 8000 Cube or 5
Tractor Trailer Loads. The Elimination of Four (4) Tractors and Five (5) Trailers Equates to
an annual Savings of $142000.00 in Fixed Assets Alone! Increased Selection Productivity due to order merge and batch picking. Increase Fleet Utilization From 15% to 20%. Predictable Delivery Times For The Supermarket/Superette Class. Reduction of unloading time with in store roll cage delivery. Average Stops Per Route In The Supermarket/Superette Class Will
Decrease to 3 While the C-Store Stops Per Route Will Increase To 15.
2030
4030
40 50
74 75
129
0
20
40
60
80
100
120
140
Best In Class Average Worst In Class
C-STORE SUPERETTE SUPERMARKET
Average Unloading Time By Class
Annual Reduction in $$$$By Class
$121,550
$20,020
$48,620
$0$20,000$40,000$60,000$80,000
$100,000$120,000$140,000
Annual Reduction
C-StoreSuperetteSupermarket
Potential Savings All Classes
Implementation Time LinePhase # 1
Give Affected Retailers a 30 Day Notice of Delivery Schedule Change To Take Effect Mid September.
Phase # 2
Have Detailed Delivery Schedule Prepared For September Board Meeting.
Phase # 3
Negotiate Phasing In Straight Trucks with Ryder Representative.
Conclusion
Annual Cost Reduction
$142000 Fleet Reduction
$190190 in Retail/Driver Productivity
$125000 in Warehouse Selection Productivity
$55300 In Fixed Assets By Converting 4 Straight Trucks
Grand Total Potential Annually $512490