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Frito Lay Canada

Frito Lay Canada operates one of Canada’s largest fleets of transport and delivery vehicles. The company has used supply chain optimization, technology and best practices to decrease GHG emissions and improve operational efficiencies by reducing fuel costs.

Company Background

Frito Lay Canada (FLC) is a member of the PepsiCo family of companies and is Canada’s largest snack food manufacturer. The company employs over 4,500 people and operates six manufacturing plants in Taber (Alberta), Lethbridge (Alberta), Bow Island (Alberta), Cambridge (Ontario), Lauzon (Quebec) and Kentville (Nova Scotia).

The company has 13 distribution centres across the country and over 300 local bins (a bin is a a drop site for product, such as storage facility, where sales representatives in small communities or remote areas pick product to merchandise in their stores). FLC leverages a direct-to-store delivery service model, where FLC representatives deliver products directly to customers and merchandise the products on shelves. This creates the need for a vast but flexible network that can reach all FLC customers and adapt to their varying needs. FLC currently operates 84 tractor trailers and about 1,350 delivery vehicles across its network.

Frito Lay Canada is continually searching for ways to save fuel and reduce costs in its shipping operations. In 2009, the company succeeded in reducing the fuel consumption of its fleet by approximately 11% compared to 2008. In recognition of its efforts, FLC was awarded the 2009 Supply Chain and Logistics Canada (SCL) Green Supply Chain award, sponsored by Transport Canada.

Driving Forces

As part of PepsiCo, Frito Lay Canada supports its parent company’s vision of Performance with Purpose: “to continually improve all aspects of the world in which we operate - environment, social and economic.” FLC recognizes that an efficient vehicle fleet can reduce fuel consumption, reduce GHG emissions and improve profitability. The company’s large fleet accounts for a significant portion of its carbon footprint and FLC is continually improving the efficiency of its fleet to reduce carbon emissions and minimize operating costs. And with rising energy costs, FLC’s improved fuel consumption has had a significant positive effect on the economic bottom line of the organization.

Actions to Reduce Shipping Footprint

1. Supply chain optimization and logistics

Several teams have been established to focus on key performance indicators and identify areas for improvement and best-practice sharing. For example, the Supply Chain Optimization (SCO) team is constantly working to reduce vehicle kilometres. Strategic sequencing of vendors on routes has reduced vehicle kilometres traveled by 3%, which equates to a reduction of nearly 1 million kilometres travelled by FLC’s delivery fleet. Strategic sequencing means that stops on a sales route are ordered in a fashion to reduce the number of kilometres driven. A software program lays out the stops on a map and then picks the shortest route possible to reach all the required stops.

2. Technologies

FLC actively seeks to improve the efficiency of its tractor trailer fleet of 84 vehicles. Tractors are continually being replaced with new low-emission models nearly two-thirds of the tractors are equipped with 2007 or newer engine technology. The FLC tractor fleet has also been equipped with several energy saving technologies, including:

• Infrared Spot Heaters – FLC has installed infrared spot heaters in the cabs of several of its tractors. These heaters heat the objects they are focused on rather than the air, so drivers are kept warmer in a relatively cold area. These heaters reduce the total heat load and thus decrease fuel consumption.
• Auxiliary Power Units (APUs) – APUs have been installed in 24 FLC sleeper tractors to provide heat, electricity and air conditioning for the bunk without the need to idle the main engine.
• Box Heaters – Box heaters have been installed in several tractors. Box heaters warm the work area while using approximately one tenth of the fuel consumed by an idling engine.
• Idle Shutdowns – All new FLC tractors are automatically programmed to shut down the engine after three minutes of engine idling.
• Top Speed Limiters – FLC delivery fleet vehicles are factory programmed to restrict the maximum achievable speed to 105 kph. Traffic fleet vehicles (long-haul) are limited to speeds of 90 kph to 105 kph, depending on the jurisdiction.
• Low Drag Mud Flaps – Specially designed low drag mud flaps reduce the aerodynamic resistive force on FLC vehicles and improve fuel efficiency.
• Belly Fairings – Several FLC trailers have been retrofitted with belly fairings to improve aerodynamics and decrease drag, with a mandate that all new trailers be equipped with belly fairings. [A Transport Canada Freight Sustainability project by Acquis Route demonstrated that Cascades Transport Inc. Reduced fuel consumption by 7% by installing aerodynamic skirts (belly fairings).]

Actions have also been made to improve the efficiency of FLC’s 1,350 delivery vehicles. The vehicles have been custom engineered to weigh approximately 4,600 lbs less than comparable stock models through the use of lightweight materials. These models achieve up to 50% better fuel economy than a conventional vehicle and subsequently reduce emissions.

3. Best practices

• FLC has developed and implemented several best practices to reduce the environmental footprint of its shipping activities.
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• For example, FLC actively uses Long-Combination Vehicles (LCVs) - one tractor hauling two full-sized trailers - in all Canadian provinces except PEI, Ontario and British Columbia. The company is currently participating in an Ontario-wide pilot to introduce LCVs to the province. This practice cuts fuel usage and subsequent emissions nearly in half, thus decreasing greenhouse gas emissions by an estimated 150,000 tonnes annually for FLC.
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• Each FLC driver maintains a scorecard of his/her individual performance data that includes safety (incidents and violations), kilometres driven, kilometres per litre, idling time, hours worked and attendance. This is reviewed by the driver and the Traffic Resource (manager) 13 times a year in one-on-one interviews. Each driver is also required to be engaged in improving the business and the performance of his/her distribution center. The scorecards provide incentive for improvement and are used to determine individual recognition.

Next Steps

Alternative energy solutions are the future of FLCs transportation fleet. The company is currently working with Transport Canada and the Ministry of Transportation Ontario to bring its first fully-electric, zero-emissions delivery vehicles to Canada. Six Class 3 trucks with electric motors have been purchased and will be put into service in April 2010.

These six electric trucks will reduce annual greenhouse gas emissions by more than 70 tonnes of carbon dioxide equivalents compared to a conventional combustion engine vehicle. The data collected from the project will be shared throughout the industry to communicate the benefits of the technology and promote the use of non-carbon based fuels in logistics. Other alternative fuels, such as propane and natural gas, are currently being explored for FLCs long term fleet sustainability strategy.

Additional Information

1. Pepsico
2. Frito Lay Canada

Date modified:

2012-02-17

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