BY MARK B. SOLOMON, SENIOR EDITOR
DEALING WITH HIGH FUEL COSTS
enroute
taming the
oil beast
From packaging redesign to driver training
programs, companies are doing whatever it
takes to get a handle on fuel costs before
AT TECH TITAN HEWLETT-PACKARD CO., A PROGRAM
to redesign the packaging for notebook computers has
trimmed package weight by 8 percent and increased the number of boxes per pallet by 25 percent—a move that has
reduced the number of trucks needed and, by extension, the
company’s fuel costs.
At home improvement giant Lowe’s Companies Inc., an initiative to increase private fleet utilization has allowed the retailer
to use 4,900 fewer trailers to ship the same product quantities,
cutting the company’s annual vehicle miles traveled by 1. 3 million and slashing its diesel fuel consumption by 285,000 gallons.
At mega-retailer Kohl’s Department Stores, a re-engineered
truck backhaul program has cut empty miles by creating nearly
19,000 backhaul trips from stores to distribution centers. By filling trailers with vendor merchandise returning to its DCs, Kohl’s
eliminates 3. 6 million miles of formerly empty truck hauls.
Businesses are leaving few stones unturned in their quest to
cut fuel expenses. Whether it’s a minor tweak in product packaging or a wholesale distribution network redesign, they’re
finding ways to root out inefficiencies and reduce their fuel
spend. For all their progress to date, however, it seems there’s
always more they could do. Significant opportunities still lie
ahead to achieve the often-entwined benefits of lower fuel
expenditures and carbon emission reductions, experts say.
“There is a lot of low-hanging fruit out there,” says Judy
