Saturday, September 27, 2008

Better Energy Management Via Supply Chain Optimization


Improving fleet management can help

A key aspect of optimizing the use of energy is optimization of the need to use it, observes Erv Bluemner, vice president of product marketing, transportation solutions, with RedPrairie Corp. The following is RedPrairie's guide to optimizing the need in the supply chain, focusing on energy management:

Start with routing and consolidation. Bluemner says RedPrairie's fleet optimization clients save an average of 10% to 15% in miles driven from improved routing and consolidation. Big improvements can be made in companies that have a lot of less-than-truckload (LTL) activity, he adds. Carbon dioxide emissions are also reduced. The Environmental Protection Agency (EPA) estimates that every gallon of diesel consumed creates 22.2 pounds of carbon dioxide emissions. If every driver in a fleet of 50 trucks drove five fewer miles a day from optimized routing and planning, the annual reduction of carbon dioxide entering the atmosphere would total 1.5 million pounds. In addition, optimized routing reduces fuel consumption and idling time while better consolidation of shipments reduces load and unload times.

Improve fleet management. Fleet tracking helps monitor fleet movement and performance while reducing fuel consumption, adds Bluemner. Some of the greatest environmental benefits from fleet tracking come from the reduction in idling time and improved equipment use. The company reports its Fleet Visibility customers are typically able to reduce idling by 30%.

See full Article.