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Jack Ampuja Supply Chain Optimizers Niagara University
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Jack Ampuja Supply Chain Optimizers Niagara University.

Dec 13, 2015

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Page 1: Jack Ampuja Supply Chain Optimizers Niagara University.

Jack AmpujaSupply Chain Optimizers

Niagara University

Page 2: Jack Ampuja Supply Chain Optimizers Niagara University.

Green program motives

Cost Reduction Regulatory Compliance Carbon Footprint Competitive Advantage

Page 3: Jack Ampuja Supply Chain Optimizers Niagara University.

24%

31%

48%

49%

51%

0% 10% 20% 30% 40% 50%

% of Companies

Rising cost of

inbound/outbound

transportation

Current/expected govt.

compliance

Competitive

advantage/differentiator

Rising cost of energy/fuel

Desire to be a thought leader

for green/sustainability

Page 4: Jack Ampuja Supply Chain Optimizers Niagara University.

9%

19%

28%

33%

36%

37%

41%

43%

48%

64%

68%

0% 10% 20% 30% 40% 50% 60% 70%

% of Companies

Improve employee satisfaction/attract talent

Reduce use of toxic materials

New customers or product lines

Reduce emissions

Be more fuel efficient

Increase use of recyclables/reusables

Improve visibility into green supply chain

Reduce wast/improve disposal methods

Improve profits

Enhance social responsibility

Reduce overall business costs

Page 5: Jack Ampuja Supply Chain Optimizers Niagara University.

Transportation & Logistics Costs: 2% decrease versus 1% increase for Industry Average, and 4%

increase for Laggards Energy Costs: 6% decrease

versus no change for Industry Average and 7% increase for Laggards

Operations and Facilities Costs: 2% decrease versus no change for Industry Average and 4%

increase for Laggards Supply Costs: 2% decrease

versus no change for Industry Average and 6% increase for Laggards

Page 6: Jack Ampuja Supply Chain Optimizers Niagara University.

35%

24%

37%

38%

39%

39%

42%

45%

46%

33%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

% of Companies

Redesign aspects ofpackaging, product design

Improve waste/disposalmgmt (recycling, reuse,reverse logistics, etc.)

Focus on emission/carbonfootprint reduction strategies

Redesignprocurement/sourcingstrategy around green

Redesign aspects oflogistics/transport system

Best-in-class All others

Page 7: Jack Ampuja Supply Chain Optimizers Niagara University.

Surpassed stated corporate goal by achieving 25% increase in efficiency between 2005 & ‘08

Used technology for Reducing vehicle weight

1000 lbs = .10% increase in mpg Increasing weight per truckload More efficient routing of trucks

Goal is to double fleet efficiency by 2015 from 2005 standards

Page 8: Jack Ampuja Supply Chain Optimizers Niagara University.

Inventory planning systems use averages to define truckload: weight, cube, pallet spots Many trucks run below max about 5%

New software allows for real ‘full’ truckloads while staying in legal limits

Can also plan ‘best’ pallet loading techniques

Used by companies such as Procter & Gamble, Kraft, Nestle, Smuckers

Page 9: Jack Ampuja Supply Chain Optimizers Niagara University.
Page 10: Jack Ampuja Supply Chain Optimizers Niagara University.

Patented tractor from HydrogenFS.com HFS is a group of trucking industry

veterans who pooled their knowledge on efficiency to create the Green Machine

Key component = Jetstar hydrogen booster invented & manufactured in Pickering ON

Engine & transmission are re-manufactured units: less expensive + more green

Page 11: Jack Ampuja Supply Chain Optimizers Niagara University.

Uses “jetstar fuel”…specially treated water Electrifying water creates hydrogen &

oxygen Gases are piped to intake manifold There is no hydrogen storage in truck…

gases are burned as soon as they are created

Hydrogen + oxygen give engine power boost & burn diesel fuel completely reducing emissions to almost nothing

Page 12: Jack Ampuja Supply Chain Optimizers Niagara University.

Engine is most widely sold Detroit Diesel ever

Larger single tires filled with nitrogen All aluminum wheels – including 5th wheel Air deflectors on side & top Carbon fiber springs Alan Bishop electric engine fan system Jetstar hydrogen booster for engine Synthetic oil is changed after 100,000

miles

Page 13: Jack Ampuja Supply Chain Optimizers Niagara University.

Engine burns fuel more completely generating more power & less carbon output

All technology used is available to any firm Green Machine was conceived by trucking

industry veterans and assembled in Michigan Verified national test shows tractor hauling

loaded trailer averages 8 mpg…30% gain with emissions below 2014 EPA standards Latest test = 10 mpg

Page 14: Jack Ampuja Supply Chain Optimizers Niagara University.

“The hydrogen-injected trucks will enable a 15% increase in fuel economyand exceed vehicle emission standards by 11%. These vehicles inject small amounts of hydrogen and oxygen into the engine’s air intake, resulting in a shorter burn time that uses less fuel and produces cleaner emissions. The company expects to save more than 4,200 gallons of fuel per hydrogen truck and eliminate over 216 metric tons of greenhouse gas emissions annually.”

Page 15: Jack Ampuja Supply Chain Optimizers Niagara University.

SaaS - Software as a service is major benefit for smaller companies Gets them into the game at low cost Far surpasses performance of manual systems TMS becomes viable for almost all firms Lets user focus on business issues rather than

IT Leading SaaS interface with major ERP

packages

Page 16: Jack Ampuja Supply Chain Optimizers Niagara University.
Page 17: Jack Ampuja Supply Chain Optimizers Niagara University.
Page 18: Jack Ampuja Supply Chain Optimizers Niagara University.
Page 19: Jack Ampuja Supply Chain Optimizers Niagara University.
Page 20: Jack Ampuja Supply Chain Optimizers Niagara University.

$000 Transport Inv & OH Total %

Baseline 34,500 19,750 54,250100

Locations 26,800 22,500 49,300 91

Least 30,600 13,400 44,000 81Final 29,900 15,300 45,200 83

Page 21: Jack Ampuja Supply Chain Optimizers Niagara University.

Lowest cost network Best service network Optimal combo of cost and service Lowest carbon footprint network Management now has a $ target between

lowest cost and lowest carbon They now know what it will cost the company

to operate a green network

Page 22: Jack Ampuja Supply Chain Optimizers Niagara University.

Adding carbon footprint weighting to model allows for comparing environmental impact of various scenarios

Comparing total miles of different logistics networks – inbound & outbound – allows for identification of lowest miles of movement

Calculates $ of environmental improvement