The document discusses the Empty Miles service, which aims to reduce empty truck miles and associated costs and emissions by matching carriers with available truck capacity to shippers with freight needs. It provides background on the problems of empty truck miles, and describes the collaborative solution between VICS and GS1 to create an online portal allowing members to post available truck capacity and search for loads. It outlines the key features of the portal and benefits of the service in reducing costs, emissions and improving sustainability.
2. Agenda The Empty Miles Problem Empty Miles Service Evolution VICS & GS1 The Solution Sustainability ¡°Green¡± Goals & Differentiation Empty Miles Participation Key Features of the Web Portal Next Steps More Information
3. The Empty Miles Problem Cost of fuel and truck operations are escalating and contributing to increased supply chain cost and inefficiency. Empty trucks consume time and fuel on return legs of freight lanes. 28% of miles are empty per NPTC (National Private Truck Council). Companies pay a freight premium to cover returning empty trucks. Limited existing technology to identify opportunities for Back Hauling also coupled with collaborative business processes to match the shipper and potential carrier companies. We are in the middle of tough economic times. Focus on the environment and sustainability is increasing. Emissions Reduction is a key plank in most companies¡¯ strategies.
4. VICS members represent both small and large firms that collectively generate a sales volume of $2.3 trillion annually. These firms have grown through pioneering VICS' business processes and standards that increased sales, eliminated inefficiency, and got them closer to their customers. VICS¡¯ mission is to take a global leadership role in the development of business guidelines & specifications; facilitating implementation through education and measurement. Benefits can be measured in the improvement in retail supply chain efficiency and effectiveness, increased sales, service levels meet or exceed customer and consumer expectations. VICS¡¯ overall global objective is to improve trading partner relationships in the extended retail supply chain, resulting in improved product availability to the consumer. When properly implemented, VICS guidelines, practices and specifications lead to better anticipation of and reaction to changes in consumer demand, resulting in improved sales, profits and the use of fixed and working capital. GS1 US & Canada are neutral, not-for-profit organizations that promote and maintain global standards for the identification of goods, locations and related e-commerce communication, and provides education and awareness of these global standards. DON¡¯T WAIT TO BE GREAT¡ COLLABORATE! TM About VICS About GS1 US and GS1 Canada Empty Miles Service Evolution Roots in Three Not-for-Profit Organizations
5. Empty Miles Service Evolution Progress to Date 2007 Q3 VICS approached GS1 CA with concept Q4 GS1 CA took project approach: proof-of-concept, build prototype 2008 Q1 Industry focus groups : understand issues, refine concept Q2 Develop proof-of-concept (HTML) Q3 Develop prototype solution Q4 Pilot with Industry focus group 2009 Q1 Implementation Q3 Outreach/Process/Technical Enhancements ¨C Mass Import/Export TBD Wave 2 - Technical Enhancements ¨C Visibility (e.g. Watch Lists)
6. Low cost collaborative solution to provide visibility to Shippers and Carriers by identifying potential opportunities to reduce empty backhaul capacity. A web based Service to match carrier availability (empty miles) with transportation demand (loads) delivered through a members only internet portal. A toolset comprised of collaborative processes, cost and emissions savings Benefits calculator, negotiating checklists, legal agreement templates, and standard data definitions to use the service. An information exchange capability for VICS members delivered through the portal powered by GS1 NA. The Solution¡ VICS Empty Miles
7. Creates opportunities for quantifiable reductions in carbon emissions you can take to your stakeholders. Six Points of Why VICS Empty Miles is Different: Foundation for Sustainability Strategies 30% of the Subscribers listed in Newsweek¡¯s Top 500 Green Companies 75% of the top 25 prospects are in the top 500 The Macy¡¯s / Schneider case study validates program¡¯s success Endorsed by EPA/SmartWay Transport program 55% of Empty Miles subscribers are SmartWay Transport certified. Reduces Impact on Highway Infrastructure & Deterioration Addresses macro issues like pending government action & fuel costs Cap & Trade underway and fuel increases tied to rising oil trends VICS, GS1 US, and GS1 Canada collaborative organizations are all not-for-profit and savings are completely owned by the subscribers ¡° Green¡± Goals & Differentiation Driving Savings and Curbing Emissions
8. Empty Miles is a ¡°Quick Win¡± for sustainability initiatives Just one empty lane per week* Eliminates over 41 tons of CO 2 per year Saves over 3,700 gallons of diesel At $2.70 per gallon ¨C that¡¯s over $10,000 That¡¯s the equivalent of nearly 20 barrels of crude oil * Based on the annual impact of a 500 mile lane run once per week. CO 2 emissions are based on the EPA emissions calculator (22 lbs per gallon diesel) Fuel consumption based on equipment rated at 7mpg Crude oil consumption based on EPA analysis of average crude refinement
9. Empty Miles Participation Who are the target subscribers? VICS members or VICS member trading partners Companies looking to take a leadership role in reducing their impact on the environment Companies looking for overlapping power lanes where multi-shipper freight opportunities can be engineered into a long-term durable solution. Dedicated carriers broadening shipper satisfaction. Large enterprises across North America. Empty Miles is not a broker¡¯s board or based on transactional relationships It¡¯s not a load matching service...it¡¯s about Lane Matching
10. Empty Miles Participation ¨C U.S. Current Subscribers Include nearly $ 1 Trillion in revenue mass Macy¡¯s / Schneider averaging $25,000 savings and CO 2 reductions over 150 tons per lane !!! via Win-Win-Win Value Sharing
11. Empty Miles Development - Canada Development Started in January 2009 Members of Supply Chain Invited to Participate GS1 Conducted Workshops and Pilots Multiple Pilots Conducted to Confirm Solution Met Industry Needs Empty Miles Canada Live in Q4 2009 Workshop and Pilot Participants Included:
12. Well Supported and Endorsed VICS Empty Miles has: Endorsed by: Over 30 Participants +2450 Live Posted Lanes +500,000 Miles VICS is a proud supporter of the EPA SmartWay program
14. Empty Miles Service ¨C Key Features Available Capacity Post Empty Miles ¨C Singular or Mass Upload (Excel Spreadsheet) Clone Power Lanes Available Loads Search Empty Miles Make Contact Create Watch Lists ¨C Import & Export Watch Lists (Excel Spreadsheet) Both Parties Create Reports Tools Benefits Calculator Backhaul Partnership Checklist Tri-Party Partnership Agreement Non-Disclosure Agreement Private Fleet Operating as For-Hire All negotiations take place off-line
15. Importing Power Lanes Browse¡ to select your .csv file for upload Enter an Import Name in the field provided Click Start Import. Publishers can Export , Delete , and Run watch lists for specific Imports.
17. Participate in Further Webinars if Desired Sign on to www.emptymiles.org Review the FAQs and video orientation tools Subscribe using the online registration tool Annual Subscription < $2,000 Flat Fee Begin listing your available capacity Begin searching for available capacity BEGIN SAVING !!! Next Steps
18. For more information¡ Please contact: Tony Galli [email_address] Or visit: www.emptymiles.org (fill out the ¡°Contact Us¡± page) www.vics.org