“We evaluate new systems and components for suppliers all the time,” says David Hoover, director of outbound logistics at Meijer. “It can be exciting and gratifying to test a product that makes a positive impact on our environment, fuel economy or the safety of our fleet.”
That practice at Meijer, the Grand Rapids, Mich.-based retailer that operates 191 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky, led to a decision to become the first fleet to order 2010 trucks equipped with Detroit Diesel DD13 engines with BlueTec emissions technology. The first of 40 Freightliner Cascadia models ordered from Daimler Trucks North America were delivered in late 2009, ahead of the emissions regulations that took effect the first of this year.
The introduction of the Freightliner Cascadias with 2010 emissions technology into the 130-tractor Meijer fleet is a continuation of the company’s green initiatives, notes Tom McCall, vice president of logistics. “In October 2007, the U.S. Environmental Protection Agency SmartWay Transportation Partnership awarded us its Environmental Excellence Award for leadership in conserving energy and lowering greenhouse gas emissions from our transportation and freight activities,” he says.
“The aerodynamic Cascadia with the DD13 engine effectively met our criteria for cleaner emissions along with better fuel economy,” McCall adds. “This was a winning combination and fit well with our business plan to green up our fleet.”
Taking advantage
Meijer, relates David Hoover, has been putting off truck purchases for three years to be able to take advantage of the new 2010 engine technology as soon as it became available. “Our tractor trade cycle is normally between 800,000 and 900,000 miles,” he says. “That’s about six or seven years in our operation, where tractors average 125,000 miles annually. We did not replace any vehicles in 2008 or 2009, however, so we could retire 2001 through 2004 models this year.
As Meijer takes delivery of its new 2010 Freightliners, its 2001 through 2004 Sterlings with a mix of Caterpillar, Cummins and Mercedes Benz engines will be phased out of the operation. The initial 40 Cascadias, delivered in December 2009 and January 2010, are now replacing the oldest units. In addition, another 35 Freightliners have been ordered and are expected to be placed in service in July of this year. Remaining in the fleet are approximately 45 Volvo models with Cummins ISX engines that were purchased from 2005 through 2007.
“Many factors influence our purchasing and specification decisions,” Hoover says. “We consider fuel economy and safety as well as a manufacturer’s reputation, stability, support structure and warranty coverage. Initial purchase price and depreciation schedules are also considered while economic conditions, including fuel prices at the time of budgeting and again at purchasing, do influence our decision process.”
Other influences, Hoover adds, are current and possible future regulations that might impact operations, as well as input from several key sources. “We get our drivers’ and mechanics’ opinions and involvement,” he says, “and we exchange information with other companies around the country to hear their ideas and learn about directions they may be taking with their fleets. We also attend several trade shows each year, read trade magazines and hold periodic meetings with dealerships, manufacturers and their engineering groups, and go on plant tours to gather information.”
Close attention
Cost and repair histories are also factors in Meijer’s purchasing decisions, notes Daniel Scherer, fleet maintenance manager. “Reliability, durability and serviceability are very important to us,” he says. “We use industry standard ATA VMRS codes to track data down to the component level. We also pay very close attention to results of DOT inspections and monitor compliance with preventive maintenance schedules.
“We track everything that has to do with vehicle maintenance very closely,” Scherer continues. “Our parts inventory is managed with our maintenance software. “In addition, every tire is branded with a unique ID number and tracked by position on every truck and trailer for its entire lifecycle,” he relates. “Also watched closely is fuel usage at our onsite fueling facilities in both shop locations.”
Meijer’s fleet maintenance operation includes its main shop in Lansing, Mich. The 50,000-sq. ft. facility services nearly 1,300 pieces of equipment including tractors, yard switchers, dry vans and refrigerated trailers. A second, 15,000-sq. ft. facility in Newport, Mich. services more than 500 pieces of equipment, including power units, yard switchers, dry vans and refrigerated trailers.
Critical relationships
All of these efforts, notes Richard Keyes, executive vice president, Meijer supply chain operations and manufacturing, are important to the success of the company’s fleet operation and its equipment and maintenance programs. “Supplier relationships are also critical,” he says. “Our best suppliers strive to help make Meijer successful by offering us quality parts and service at a competitive price.
Additionally, says Keyes,“Those suppliers look at the big picture and think of their profits as a long term investment in their own future. When they do that, we are able to succeed by keeping our costs down and passing on those savings to our customers.”
