What Is a Zero-Emission Vehicle?
May 08, 2024
A zero-emission vehicle (ZEV) is a battery-powered vehicle that does not emit exhaust or other pollutants from its tailpipe. ZEVs are fully electric vehicles and must be plugged in to recharge.
sustainability
What Is WAIRE?
May 08, 2024
Warehouse Actions and Investments to Reduce Emissions (WAIRE), sometimes called the Indirect Source Rule, is a truck traffic-based credit and deficit system impacting class 2B to class 8 trucks. Under the rule, some facility operators must monitor and submit accurate vehicle travel data, and they must earn a specified number of points through emissions-reducing activities or pay mitigation fees. The regulation also requires warehouses with ≥100,00 ft2 of indoor space within a single building to complete emission mitigation actions and investments.
What Is a Transport Refrigeration Unit?
May 08, 2024
Transport refrigeration units (TRUs) are climate-controlled devices that provide essential cooling or heating for consumer products being transported in various containers. They maintain a steady temperature for goods during transport or storage and allow the trailer to be cooled when the engine is shut off.
TRUs are also subject to state and federal regulations, most recently in the CARB TRU regulation mandating that owners and operators of truck TRU fleets in the state of California switch to zero-emission vehicle (ZEV) TRUs by a specified date.
What Is Renewable Diesel?
May 08, 2024
Renewable diesel is an advanced fuel option that helps reduce greenhouse gas emissions. It is refined using plant-based oils and can be added to existing fuel truck systems to help lower a fleet’s carbon footprint.
What Is a Carbon Footprint Analysis?
May 03, 2024
A carbon footprint analysis is a tool for measuring, analyzing and managing carbon emissions throughout a supply chain. It helps identify ways for a business to reduce its environmental impact and improve sustainability.
What Is CARB?
May 03, 2024
The California Air Resource Board (CARB) is a state agency that leads California’s efforts to reduce air pollution and climate change. Because California often takes the lead at the state level on regulatory requirements and creating stricter emissions rules, CARB has adopted several measures that are currently being introduced or implemented in other states including ACF, TRU and WAIRE.
Penske Logistics Sustainability Efforts Recognized as High Performer by U.S. EPA SmartWay Program
September 14, 2023
The U.S. Environmental Protection Agency (EPA) SmartWay program has named Penske Logistics a 2023 High Performer among mixed truck carriers in the carbon recognition category. Less than 10% of eligible fleets qualify for this designation.
SmartWay Partners like Penske Logistics annually submit efficiency and air quality performance data to the EPA. The SmartWay program noted that a High Performer such as Penske Logistics consumes less fuel for every mile traveled and for every ton of freight that is moved.
As the EPA explained it, Penske Logistics is among a select group of companies that “are a step ahead in meeting the challenges of sustainable goods movement. These leaders represent all types of SmartWay Partners, including shippers, truck carriers and logistics service providers.”
By “Move Ahead” Staff
[Read more...]Show less
Penske Transportation Solutions Recipient of Climate Leadership Award for Electric Truck Innovations
May 26, 2023
Penske Transportation Solutions was recognized in Los Angeles by the Climate Registry for its work with electric trucks. Penske was honored with an Innovative Partnership Certificate at the 2023 Climate Leadership Awards for being a part of the Freightliner Electric Innovation Fleet.
The other recipients included Daimler Truck North America, Gladstein, Neandross & Associates (GNA) and the South Coast Air Quality Management District (SCAQMD).
The Freightliner Electric Innovation Fleet project partners came together over the past several years to develop a comprehensive plan to help ensure the wide scale deployment and success of heavy-duty battery-electric trucks. Penske is an industry leader in this space.
The project takes place in Southern California and is expected to yield tremendous emission benefits from zero emission on- and off-road technologies operating in South Coast Air Basin.
Click here to access the new GNA-produced State of Sustainable Fleets report. Penske and Daimler are title sponsors.
By “Move Ahead” Staff
[Read more...]Show less
In the fourth annual State of Sustainable Fleets Market Brief, commercial transportation fleets continue to report a resounding trend — their use of clean fuels and advanced vehicle technologies is rapidly accelerating.
Report author and leading clean technology consulting firm, Gladstein, Neandross & Associates (GNA), unveiled the findings at the Advanced Clean Transportation (ACT) Expo in Anaheim, California.
Penske Transportation Solutions is once again a report title sponsor. To read the complete 2023 Market Brief at no cost, visit www.StateofSustainableFleets.com.
The past 18 months have laid the roadmap for a zero-emission (ZE) future in many U.S. states.
“As detailed in this State of Sustainable Fleets report, progress is being made across all fronts,” explained Drew Cullen, Penske senior vice president of fuels and facility services. “ZEVs and other alternative powertrains, infrastructure, renewable energy, and funding all continue to make significant strides in meeting and exceeding fleet sustainability targets.
“This year’s report highlights the growing investments and innovations OEMs, energy providers, public and private fleets, and government agencies are making in developing, experimenting, and adopting clean transportation technologies,” Cullen concluded.
The publication offers another deep analysis into the alternative fuels and clean transportation markets, with the following key findings:
- Public policy and funding have shifted sharply to build the ZEV market, accelerating the sunsetting of diesel.
- Interest in battery-electric vehicles is high and broad, though supply, cost, and infrastructure barriers persist.
- Value of efficiency and renewable fuel for diesel vehicles remains strong, growth of renewable diesel supply continues.
- CNG and propane retain cost advantages while new vehicles entering the market expand options for fleets.
- Public and private hydrogen investment emphasizes fueling, while commercial heavy-duty vehicle offerings expand this year.
"The past year has brought a historic amount of investment from the federal government, as well as from private industry,” noted Erik Neandross, chief executive officer of GNA. “Across clean fuel types, we’re seeing accelerating momentum and an increasing commitment to low carbon fuels and zero emission commercial vehicles.”
The State of Sustainable Fleets is the leading source of information on sustainable technology decisions being made by America's on-road fleets. The annual analysis gathers real-world data directly from early adopter fleets across the U.S. to provide deep sector-specific insights into the adoption of battery-electric, natural gas, propane, and hydrogen fuel cell electric vehicles, against a baseline of diesel and gasoline vehicles.
By “Move Ahead” Staff
[Read more...]Show less
Eight Ways 3PLs Help You Achieve Sustainability Goals
April 27, 2023
Sustainability is taking on increased importance as companies respond to consumer trends and preferences, regulatory requirements, and environmental and climate impacts. Organizations are using their supply chains to better align with their environmental, social and governance (ESG) goals.
The supply chain provides many opportunities to increase efficiency and improve sustainability. Many times, those opportunities also result in cost savings. “Any 3PL who can demonstrate they’re doing anything to improve air and water conditions provides value. That is a big deal in the annual report or any ESG statement,” said Kevin Smith, CEO of Sustainable Supply Chain Consulting, in the 2023 Annual Third-Party Logistics Study.
Logistics providers contribute to their customers’ Scope 3 emissions — indirect emissions that occur in a reporting organization’s value chain — and need to be able to quantify emissions savings when needed.
Penske is working to decrease greenhouse gas (GHG) emissions, and that effort includes participation in the EPA’s SmartWay program. The company is a seven-time winner of the EPA SmartWay affiliate challenge and has received the SmartWay Excellence Award six times. In 2022, Penske was a high performer in the logistics and carrier categories.
Here Are 8 Ways Penske Helps Customers Meet Their Goals:
1. Improving Miles Per Gallon: Penske Logistics uses late-model equipment with significant fuel economy improvements, reducing emissions. The North American Council for Freight Efficiency’s 2022 Annual Fleet Fuel Study found that fuel efficiency for all heavy-duty Class 8 combination vehicles went from 5.97 to 6.24 mpg during the last three years.
2. Reducing Well-to-Wheel Emissions: Penske is expanding its use of renewable diesel fuel. This cleaner option performs identically to Ultra-Low Sulfur Diesel (ULSD) but has a lifecycle GHG emissions reduction of 63% or more. Additionally, renewable diesel reduces particulate matter by more than 40%, carbon monoxide by more than 25%, total hydrocarbons by more than 20% and NOx by 10%.
3. Optimizing Routes and Networks: The greenest mile is the mile that isn’t run. Finding more efficient routing and network designs improves utilization, which eliminates miles. Penske’s engineering team utilizes route optimization software to show how many miles can be removed, which results in fuel savings and a reduction in emissions. Creative engineering solutions also help shippers maximize the cube utilization of trailers to reduce empty miles and unnecessary trips.
4. Utilizing Backhauls: By maximizing backhauls, companies are optimizing routes and potentially taking vehicles off the road by filling miles that would have otherwise been empty. Penske matches backhaul capacity within its dedicated contract carriage customer base and freight under management, leveraging strategic partnerships with third-party shippers.
5. Enabling EV Deployments: Penske has been operating alternative fuel fleets for over 30 years and has invested in maintenance training and facilities that can service alternative fuel vehicles. Electric vehicles (EVs) continue to make headlines, and Penske built and operates North America’s first heavy-duty EV charging network. Penske collaborates with leading and emerging truck makers to field test and fuel vehicles in real-world conditions.
6. Designing Sustainable Distribution Centers and Warehouses: Penske is implementing deliberate actions to decarbonize warehousing operations. A key focus is reducing energy used through energy-saving projects, such as energy management controls like motion and light sensors, LED lighting, HVAC upgrades and refrigeration system optimization.
Penske procures renewable energy bundled with electricity supply as well as unbundled renewable energy certificates. In 2021, Penske’s renewable energy usage was 21% of total energy usage, and in 2022 it increased to 40%.
Additionally, DCs and warehouses can eliminate refrigerated trailer idling through the use of electric shore power and reduce the amount of tractor idling at the location by providing lounges so drivers don’t remain in their cabs.
7. Reducing Solid Waste: Penske manages its solid waste by continually monitoring solid waste volumes, right-sizing dumpsters, and instituting recycling programs for cardboard, paper, organics, plastic, glass, aluminum and wood. In 2022, 52% of Penske’s waste was recycled.
Penske draws on its experience to help customers reduce and recycle waste at distribution centers and warehouses. When possible, Penske can also help customers decrease handling, resulting in less packaging and reducing waste to the landfill. Penske also offers reusable containers or cages, which can eliminate waste.
8. Tracking the Numbers: It is no longer enough for companies to say they’re sustainable. They need to partner with providers who can help them analyze opportunities for savings, reduce their carbon footprint and track the results.
To learn more about how Penske can help you meet your sustainability goals, contact us.
[Read more...]Show less
Penske Logistics has been recognized by the U.S. Environmental Protection Agency (EPA) SmartWay program as a High Performer in a pair of clean transportation categories. Penske earned the listing in the Truck Carrier Carbon Metrics and Logistics Freight Management categories.
SmartWay Partners like Penske Logistics annually submit efficiency and air quality performance data to the EPA.
The SmartWay program noted that a High Performer such as Penske Logistics consumes less fuel for every mile traveled and for every ton of freight that is moved.
According to SmartWay a company can earn entry to the Truck Carrier Carbon Metrics list by being among the fewer than 10% of all SmartWay carriers that operate fleets efficiently enough to earn placement for reduced carbon emissions.
SmartWay also placed Penske on their Logistics Freight Management list for being among the 5% of SmartWay logistics companies that meet the emissions and carrier selection criteria. High performing logistics companies serve their customers in manners that consider the efficiency gains and emissions reductions of a logistics fleet.
“We are very pleased to be recognized by the SmartWay program as a High Performer,” said Marc Althen, Penske Logistics president. “We are dedicated to reducing the carbon footprints of our own fleet and that of our customer’s operations.”
By "Move Ahead" Staff
[Read more...]Show less
Improving Warehouse Sustainability
September 16, 2022
An energy-efficient warehouse can cut operational costs while improving sustainability, making green warehousing initiatives a win-win solution within the supply chain industry. A range of eco-friendly solutions can be applied to new construction or existing facilities.
Penske is committed to sustainable building design, embracing several strategies to minimize the carbon footprint within a warehouse and working with customers to achieve their carbon-neutral warehousing goals.
LEED Certification
Leadership in Energy and Environmental Design (LEED) is a green building certification program and rating system, and the global standard for environmentally sustainable building design, construction and operation. At Penske, our goal is for new builds and logistics centers to be LEED certified when possible.
Sustainability Practices Within the Warehouse
Comfort and Environmental Impact: New buildings feature driver lounges, enabling drivers to get out of the cab and go inside, reducing idling time and increasing driver comfort. Some locations also offer shore power as a way to cool trailers and avoid idling their small diesel engines. Penske is also adding shore power to sites that have reefers.
Decreased Energy Consumption: Lighting is a significant contributor to a location’s energy demands. LED lights are much more efficient, and warehouses can also utilize skylights to increase the amount of natural light flooding into the building. Another option is to install sensors that can monitor lighting demands within a space, adjust the amount of light provided, and turn off lights when the area is not in use.
Heating and Cooling: Temperature control within the warehouse and warehouse office space is critical to keeping employees comfortable and productive. Temperature control measures can focus on those areas occupied by people, and high-efficiency HVAC systems can generate better savings and reduce energy consumption.
Water Usage: Conserving water is another important part of maintaining warehouse sustainability. Installing low-flow fixtures and partnering with landlords to reduce overall water consumption can help preserve energy and cut costs.
Sealing the Envelope: Energy reduction programs are most successful when cold storage buildings are fully sealed, so Penske installs high R-value insulated dock doors on cold storage facilities to block leaks. R-value is a measure of thermal efficiency, and the higher the R-value, the greater the door’s insulating properties. Penske also installs dock leveler energy guards to help prevent thermal loss. Dock levelers prevent hot air from getting in and cold air from getting out, creating a perfect seal on the dock door. Seals and shelters are designed to accommodate a variety of trailers to ensure proper fit.
Natural Refrigerants: Natural refrigerants, like carbon dioxide (CO2), are a sustainable alternative to hydrofluorocarbon refrigerants (HFCs), a chemical commonly used in refrigerated warehouses. They have near-zero global warming potential (GWP) and have the potential to reduce energy, gas and water consumption. Penske is currently installing a CO2 refrigeration system in California to reduce environmental impact and future-proof the location as local and federal regulations phase out many synthetic refrigerants.
Network Design: Although a warehouse’s location doesn’t affect energy-efficient solutions within the four walls, it can contribute to a company’s overall efficiency goals. Strategically locating a warehouse close to transportation solutions or within the company’s distribution network can decrease miles traveled, which will reduce emissions. Penske can work with customers to optimize their overall network.
Renewable Energy: Penske works with customers on a case-by-case basis to discuss energy delivery options, which can include solar generation systems. Renewable Energy Certificates provide an additional option when direct renewable supply are unavailable. Our end goal is to reduce energy consumption and increase renewable energy usage.
Improving sustainability within the warehouse isn’t an all-or-nothing approach, and Penske can work with customers to deploy solutions that best meet their economic and environmental goals. Contact Penske to discuss warehousing solutions.
[Read more...]Show less
Penske Logistics Participant in First-Ever National Retail Federation Supply Chain 360 Event
June 06, 2022
Penske Logistics will take part later this month in a brand-new event being hosted by the National Retail Federation, the Supply Chain 360 conference and expo, taking place June 20-21 in Cleveland. Penske will be an exhibitor and speak on a panel.
Penske Logistics experts will be available in booth 302 to discuss supply chain solutions for the retail industry.
Paul Rosa, Penske senior vice president of procurement and fleet planning, will join Daimler Truck North America and the North American Council for Freight Efficiency (NACFE) for a panel, Sustainable Logistics: Is the Future EVs? Rosa will discuss the company’s electric truck fleet.
The NRF Supply Chain 360 conference and expo bring together retail supply chain and sustainability professionals, industry experts, and leading technology innovators to share ideas, discover cutting-edge tech and advance the future of the supply chain.
By “Move Ahead” Staff
[Read more...]Show less
Penske Transportation Solutions makes its return to the Advanced Clean Transportation (ACT) Expo in 2022 with an action-packed presence in Long Beach, California. The company is a Presenting Sponsor of the conference itself (which runs May 9-12) and a Title Sponsor of the third annual Gladstein, Neandross and Associates (GNA)-produced State of Sustainable Fleets Report.
A total of five executives will either speak or moderate a session and Penske will exhibit a trio of electric trucks in its booth.
Art Vallely, Penske Truck Leasing president, will appear on an executive roundtable about the future of clean fleets and senior leader Drew Cullen will be the company’s representative on the State of Sustainable Fleets panel.
Vice president Josh Tippin will discuss Penske’s renewable diesel program as a panelist, while vice president Sean Yentsch will moderate a session on electric vehicle charging, and director Mike Costanza will be a moderator for a workshop on zero-emission transport refrigeration units (TRUs).
ACT Expo assembles arguably the largest all-in-one showcase of the advanced clean vehicles, fuels and technologies driving the future of the transportation sector.
By "Move Ahead" Staff
[Read more...]Show less
Sustainability takes a strong corporate commitment and an integrated team approach to make it happen. At Penske, we are dedicated to readying our businesses for the future of electrification, decarbonization, and enhancing our overall sustainability as responsible corporate citizens.
Penske Transportation Solutions operates and maintains one of the largest truck fleets with more than 372,000 vehicles. For decades, we’ve been involved in actively managing our waste streams and working through programs such as the U.S. EPA’s SmartWay Transport Partnership to improve our fuel economy and reduce our fleet’s emissions.
In 2018, Penske became the first commercial fleet in North America to take delivery of a fully electric truck from Daimler Truck North America. Since that time, we have only accelerated our efforts to help drive fleet electrification by ordering and running numerous other vehicles from OEMs including light-, medium- and heavy-duty vehicles in North America.
To help make this happen, we have also begun building out an extensive charging network in California to support these new vehicles.
To accomplish introducing these new vehicles, it takes a tremendous corporate commitment and an incredible team. We’re fortunate to have this at Penske from our environmental, fuels and compliance teams, to our procurement and physical operations, at more than 1,300 locations across North America.
Today, we are doing exciting work in mapping out a wider roadmap to sustainability. This means collaboration across the Penske transportation, automotive, motorsports and entertainment businesses.
A key path forward for our transportation business today is electrification.
Our founder Roger Penske has made it our collective responsibility to contribute to a healthy environment in our communities. Our stakeholders want this from us, our communities ask this, and our associates are pleased to work with a company that cares.
Today, we are successfully operating electric trucks across our logistics, truck leasing and truck rental operations. It has been a tremendous success to say the least.
Some of our key learnings with electric trucks are:
- Driver satisfaction: Truck drivers, who have been spending years operating diesel vehicles, are blown away by the experience of driving a battery-electric truck or tractor.
- Noise reduction: Not only is the dramatically quieter ride a huge benefit to drivers, but it also alleviates the majority of the noise emitted externally, making for less disturbance in the neighborhoods where trucks operate.
- Power: The torque, acceleration and ability to maintain speed on inclines is a unique capability of an electric powertrain. Again, this leads to an enhanced driver experience, but there’s an external impact here as well. How many times have you been stuck behind a line of tractor- trailers, on an incline, on an interstate or highway?
- Zero-tailpipe emissions: Let’s be honest, there are still emissions created somewhere to create the energy that fuels a BEV, but this tech will allow us to attack emissions at the source of energy production, as opposed to every single vehicle powerplant cruising the planet. And it allows us to increasingly utilize clean, renewable energy as it becomes more available.
We’ve gained tremendous ground on the vehicle front, but we won’t stop there. Each and every day, we are identifying and deploying more best practices across the supply chain that will strengthen our sustainability efforts.
In addition to enabling our customers to blend battery-electric vehicles into their operations, we’re continuing to take a closer look at our facilities, waste streams, additional fuels and propulsion systems and renewable energy, while continuing to support original research like the State of Sustainable Fleets Report.
We move the things that move the world forward. If we stay true to our purpose and focus on the long term, while adapting to this changing world around us, we will deliver durable returns to shareholders, customers, our associates and the community at large.
By Bill Combs
Vice President Sustainability
Penske
[Read more...]Show less
Penske and Freightliner Makes NASCAR History Using eCascadia
February 04, 2022
On Thursday, Team Penske and long-time partner Freightliner, part of Daimler Truck North America (DTNA), made history by using the pre-production, fully-electric Freightliner eCascadia semi-truck to pull a full-sized Team Penske racecar hauler to the Los Angeles Memorial Coliseum ahead of this weekend’s Clash event.
The electric semi-truck pulled the trailer from a Penske Truck Leasing (PTL) location in Ontario, Calif. to the inaugural race at the L.A. Coliseum as part of Freightliner’s primary sponsorship of the No. 2 Freightliner eCascadia Ford driven by NASCAR Cup Series Rookie of the Year contender Austin Cindric. The eCascadia will remain on display throughout race weekend to give fans a firsthand look at the battery-electric truck.
“Team Penske has been evolving with Freightliner since 1984,” said Team Penske Transportation Director Chris Yoder, who oversees 20 Freightliner trucks at the team’s Mooresville, N.C. headquarters and piloted the eCascadia during the historic drive. “I think it’s safe to say we’ve operated every model road tractor Freightliner has produced since 1984. Yesterday’s trip with the eCascadia will mark the pinnacle of our partnership. Together we’ve innovated and developed on the ground floor and this trip is symbolic of the next journey we plan to take together, a carbon-neutral future with a focus on sustainability.”
“At Freightliner, we’re driven to deliver purposeful innovation for our customers and there’s a tremendous sense of pride to see the innovative all-electric Freightliner eCascadia used by our longstanding partners at Team Penske to make racing history. We look forward to cheering them on this weekend,” said Mary Aufdemberg, general manager, product strategy and market development, DTNA.
The eCascadia used by Team Penske is part of the Freightliner Electric Innovation Fleet, which includes 20 battery-electric trucks in operation by PTL and its customers. The fleet began operation in 2019 and was supported by the South Coast Air Quality Management District (South Coast AQMD), which focuses on improving air quality in the South Coast Basin of Southern California and partially funded the project.
“We’re committed to leading our industry in the transition to commercial electric vehicles and providing increasingly more sustainable truck options to our customers,” said Art Vallely, President of Penske Truck Leasing. “We continue to test new and innovative vehicles in our fleet, and we have been impressed with the performance of these Freightliner vehicles.”
To date, PTL has accumulated over 480,000 miles of use on the trucks, providing DTNA valuable feedback for the final series production coming in late 2022. The two companies share a passion for long-term sustainability and carbon neutrality, making the development process even more meaningful with Team Penske ready to author the next chapter in an incredibly successful partnership on the racetrack.
A leader in global transportation systems, PTL constructed a charging infrastructure across six locations in California. Technology partners also involved in this project included Team Penske sponsors such as Shell, Hitachi, and Siemens. Currently, PTL operates 10 Freightliner eCascadia day cab tractors and 10 Freightliner eM2 fully electric box trucks running regular routes to customers around Southern California with a focus forward on sustainability.
Austin Cindric and the No. 2 Freightliner eCascadia Ford team kick off the 2022 NASCAR Cup Series season on Sunday with the inaugural running of The Clash, an exhibition run inside the Los Angeles Memorial Coliseum on a specially designed and constructed quarter-mile track inside the iconic venue.
[Read more...]Show less
What Is SmartWay Certification?
November 18, 2021
SmartWay Certification is an innovative collaboration between the Environmental Protection Agency (EPA) and the freight industry designed to help businesses learn to move goods in the cleanest, most energy-efficiency ways possible, increasing energy efficiency, reducing greenhouse gases and air pollution, and protecting public health. The EPA's SmartWay Transport Partnership is a market-drive initiative and since 2004, SmartWay Partners have avoided emitting more than 134 million metric tons of harmful air pollution, while saving 280 million barrels of oil and $37.5 billion in fuel costs.
What Is Sustainability?
November 18, 2021
Sustainability is a business practice focused on shrinking a company's carbon footprint, reducing waste and saving money, while conducting operations in a socially and environmentally responsible way. Within the shipping industry, there are several ways to use the analytical power of network design tools to make supply chains focused more on sustainability. Some of these examples include shrinking the carbon footprint of freight operations, reducing waste and maximizing resource utilization, and supporting green operations.
Penske Logistics customer Cardinal Health has been employing a pair of Kalmar T2E electric truck yard tractors at its Riverside, California, facility for the last year. The overarching goal is to assess how implementation of electric vehicles can establish more efficient and sustainable operations.
The EV trucks feature Kalmar's latest lithium-ion battery technology and a fully electric powertrain that produces zero emissions at source and have combined to reduce carbon dioxide emissions by 79 metric tons, equating to 9.5 homes' energy use for one year (on average). The trucks operate within Cardinal Health's yard and transport a daily average of 120 trailers and ocean containers containing essential medical products and supplies to and from their docking area.
"This electric yard tractor pilot is part of our strategic focus on emerging technologies in transportation and logistics," said Katie Blohm, director of logistics at Cardinal Health. "We are committed to exploring, testing and learning how we can apply new capabilities within our supply chain to drive efficiencies and sustainability, reduce costs, and improve service and reliability for our customers and their patients."
The Cardinal Health Riverside facility houses two EV charging stations to help ensure ongoing usability of the trucks during its 24/7 operations. The location serves as a replenishment center for their western U.S. forward medical distribution center locations and large high-volume customers.
"This is the latest development in an ongoing collaborative effort to bring continuous innovation to Cardinal Health," explained Marc Althen, president of Penske Logistics. "We work to ensure that customers like Cardinal Health can achieve greater efficiencies through sustainable technology opportunities."
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities.
This project was supported by the California Climate Investments (CCI) program and the California Air Resources Board CORE program.
By "Move Ahead" Staff
[Read more...]Show less
Increasing efficiency to take miles out of a network can free up capacity and boost sustainability by reducing fuel use and cutting carbon emissions. Finding inefficiencies typically starts with examining data, reviewing business rules and evaluating equipment.
"Taking miles out is about saving money, but more and more of our customers have specific carbon-reduction goals, so it is more top of mind than it used to be," said Amy Ilyes, vice president of logistics engineering for Penske Logistics.
Penske approaches efficiency in several ways, including routing and overall network design. "We'll usually have different levers we can pull when we do an analysis. We may do one scenario where we change the time windows, one where we consolidate orders across days of the week, and one where we change the size of the trailer," Ilyes said. "Our software also considers historic traffic patterns and is aware of areas where the vehicle reduces speed."
Logistics Route Optimization
Optimization starts with gathering information on current routes and creating a baseline. "We have a variety of tools and computer models to optimize their routes, and we'll use these tools to develop optimized routes," Ilyes said. "Optimization typically reduces miles and driver hours worked. We then develop an optimal schedule with the number of drivers needed to run those routes and the number of tractors and trailers."
If companies have multiple stops per route, such as five or more, Penske will review the optimal sequence of those stops. "We have a simulation of the events that occur on the route, and we know when we need to make the deliveries and where the slack time in the route occurs. It is a puzzle. As you shift around the routes, you can reduce the number of resources," Ilyes said.
Business rules also contribute to efficiency. "If a customer is open to changing some of their business rules, then generally we can find savings as well," Ilyes said.
For example, in the retail industry, stores may have a limited window in which they accept deliveries. "If the customer decided to widen that and allow a longer time period to make the deliveries, we usually can come up with more efficient routes and maximize resources," Ilyes said.
Another option could be moving to larger equipment. "It may be that right now you have 48-foot trailers, and maybe there is an opportunity to go to 53-foot trailers. Usually, to be more efficient, we go bigger," Ilyes said, adding that with the shortage of drivers, some customers have asked for routing designs using straight trucks so they can hire Class B drivers. "In that case, you might be less efficient, but you have an underlying issue that forces you to consider it."
There is also an ongoing desire to fill empty miles. "We have a lot of freight that we manage besides our dedicated operations, and we have a backhaul solution to help fill miles. Usually, when we're putting together any design, we look at backhaul as a cost savings for the shipper," Ilyes said.
Optimizing Inventory Location
Another cost savings opportunity is ensuring inventory is in the right place, so shippers aren't adding miles. "You don't want to be shipping an order from California to a customer on the East Coast when there is a distribution center in the East," Ilyes said, adding that Penske can work with customers on long-term network design. "We can create a five-year outlook and help shippers design a strategic plan."
Supply chains have experienced significant challenges over the past two years, and many companies have had to forgo long- and even short-term planning projects as they focus on the day-to-day challenges of securing capacity and keeping up with shifting consumer demands.
However, according to the 2022 Annual Third-Party Logistics Study, a valuable component of the recovery process will be the assessment of opportunities for innovation and improvement to create value for the end-user customers and consumers. Ilyes said it is beneficial for companies to uncover efficiencies where they can, and this is the ideal time to optimize a network to help minimize current challenges and create a long-term strategy.
However, a valuable component of the recovery process will be the assessment of opportunities for innovation and improvement to create value for the end-user customers and consumers.
[Read more...]Show less
Loading posts...
- Supply Chain Management
- Lead Logistics Provider
- Consulting Services
- Network Design
- Dedicated Contract Carriage
- Shared Dedicated Transportation
- Freight Management
- ClearChain ® Control
- Transportation Services
- Transportation Management Solutions
- Truckload Shipping Services
- Warehousing and Distribution
- Warehouse Design
- Warehouse Operations
- Multi-Client Warehousing
- Freight Brokerage
- Become a Carrier for Penske
Contact Penske Logistics about our services.
Contact Penske Logistics about our services.