Improvements by the Truckload
A letter to global thought leaders from Fisk Johnson, SC Johnson Chairman and CEO.
Dear Friend:
As a family company, SC Johnson’s commitment to the environment was built on a foundation that my father instilled by proving that business can be successful while being responsible, when he made decisions like the one in 1975 to voluntarily and unilaterally stop using CFCs three years before the U.S. ban. Today, we strive to carry on this legacy through efforts like the development of our patented Greenlist™ process, which is continually improving the environmental profile of the products we sell in more than 110 countries.
In addition to improving our products environmental profile, we continue to improve our manufacturing footprint. We exceeded the company’s 2005 goals for reducing energy consumption and greenhouse gas (GHG) emissions. Between 2000 and 2005, we exceeded our fossil fuel reduction goal by 18%, achieving a 33% reduction in fossil fuel use as a ratio to production. During this time at our seven largest factories worldwide, we surpassed our GHG emissions reduction goal by 19%, achieving a 42% reduction in GHG emissions as a ratio to production.
Progress doesn’t happen overnight. It takes dedication, commitment and resources. It also takes all of us continually asking: What can we do better? The answer can be a big, groundbreaking initiative, such as SC Johnson’s Greenlist™ process that transformed how we select raw materials for our products. But smaller initiatives can make a real impact, too.
One recent example at SC Johnson has been our 2007 Truckload Utilization Project, which showed that our logistics, though world class, could become even more efficient. The project, which involved two years of research and implementation, improved the eco-efficiency of our shipping: It reduced GHG emissions, lowered fuel consumption and saved money in the process.
I hope you enjoy reading about our experience and that you will continue this dialogue. As always, I invite you to contact us for more information.
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SC Johnson’s Improved Loading Techniques … Better for the Environment and for Business
Innovation is not only the hallmark of SC Johnson’s products, but also our efforts to continually improve the eco-efficiency of transporting those products to market. In 2007, we completed a trucking-logistics project that eliminates 1,882 tons of greenhouse gases (GHGs) annually – the equivalent of making 90 two-person households carbon neutral for a year.
SC Johnson’s Truckload Utilization Project created a system that combines multiple customer orders – and multiple products – to load the fullest, best configured trucks possible. We recently completed the first year of executing the new system and the results are impressive: in addition to decreased GHGs, SC Johnson used 2,098 fewer trucks, cut fuel usage by 168,000 gallons and saved approximately $1.6 million.
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SC Johnson's Truckload Utilization Project - By The Numbers
- 1,882 Tons of reduced CO2 emissions annually
- 2,098 Trucks taken off the road each year after implementing SC Johnson's Truckload Utilization Program
- 168,000 Gallons of fuel saved annually
- 276,936 Dollars saved in fuel costs annually
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The Science of Truckloading
The project began with 12 months of thorough research, which resulted in an insightful discovery:
SC Johnson was missing the benefits of loading trucks to their most efficient weight capacity. The research showed that the different weights and sizes of various products have a profound effect on how a truck should be packed for maximum efficiency. For example, a truckload full of Ziploc® brand products was far below a truck’s most efficient load weight, whereas a smaller number of pallets of Windex® glass cleaner will hit the weight target, leaving empty space in the trailer.
After completing the research, we began strategically packing multiple products on the same load. In making this a standard process involving multiple departments, we ensured the most efficient load weight is reached, thereby shipping the same amount of product using fewer trucks.
Seize the Day ‘Cab’
We further enhanced our shipping efficiency by maximizing the use of ‘day cabs.’ A day cab, which is a truck cab with no sleeping compartment for the driver, is typically 3,000 pounds lighter than a standard truck cab. Using the lighter day cab enabled us to increase the amount of product loaded into the truck’s trailer before the vehicle’s maximum weight was reached. SC Johnson now requires that day cabs are used for all regional shipments – those that can be completed in one work day – which further improves transportation efficiency.
Another opportunity to increase efficiency involved revising a customer incentive plan. Prior to this project, SC Johnson offered an incentive program that encouraged customers to order a minimum of two layers of every product with their shipments. That meant great product diversity in the orders, but it didn’t drive efficient truckloads. By modifying this program so only one layer of product was required, we were able to better combine products to maximize truckload utilization. It also cut the number of pallets needed, which further reduced the truck’s weight and enabled more product to be loaded onto the trailer. Modifying the incentive program also benefited SC Johnson’s customers by reducing their inventory and dock congestion.
The Bottom Line
The Truckload Utilization Project helped us focus on consistently hitting a trailer’s most efficient load weight, which provided a huge opportunity to reduce SC Johnson’s energy consumption, greenhouse gas emissions and costs. This program illustrates how innovation can drive prosperity and responsibility.