To address the environmental issues, Stonyfield set up Missing Action Program (MAP) teams in December 2006. Marketing, sales, natural resources, and supply chain functions were represented in the team. The first year's goal was to establish an accurate baseline for greenhouse gas emissions generate by outbound transportation from Londonderry DC to customers throughout the United States. The company involved Ryder Logistics, which operates a dedicated fleet and managers 30 for-hire motor carriers (30% outbound transportation is handled by dedicated fleet).
Emissions baseline is calculated by adopting FLEET (Freight Logistics Environmental and Energy Tracking) performance model developed by U.S. Environmental Protection Agency. According to the model, 1,847.5 grams of carbon dioxide are emitted by a truck or rail carrying a product for one mile. The MAP team aims for a 40 percent reduction in the company's total annual carbon emissions by 2014.
Steps taken:
– Consolidation of less than truckload (LTL) shipments into full truckloads. (Today, LTL deliveries are only made to New York City)
– Establishment of 48 hours' advance notice of order revisions to promote truckload delivery
– Route optimization based on the reports obtained from Ryder. (This helped in eliminating more than four million miles and some 2,500 truck trips from 2006 to 2007, reducing the carbon dioxide delivered per ton by about 40 percent.)
– In 2008 Stonyfield began including environmental considerations in its performance measurement systems
– Carriers were encouraged to participate in EPA's Smart Way Program.
– Based on te recommendations from an extensive network analysis, in January 2009 the company began using Railex, a weekly refrigerated railcar service for food products, to move orders to the Pacific Northwest. (The company plans to use Railex for deliveries to customers in California, Texas, and Florida by 2012).
– The company is working with Ryder to upgrade tractor and trailer equipment. (The new fleet is now averaging 6.3 miles per gallon as compared to 5.25 miles per gallon in the past. The carbon emission has reduced by 10.4 percent).
Goals for future:
* Cut emissions per unit of yogurt delivered (to the 2006 baseline level) by 50 percent by 2010 and 75 percent by 2015.
* Cut absolute carbon dioxide emissions by 40 percent by 2014 (as compared to 2006 level).
Source: Cooke, J. A. "On the road to a smaller carbon footprint." CSCMP's Supply Chain Quarterly, Quarter 4/2009.