TOPS MARKETS, INC'''

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Darwyn Jones Wal-Mart Transportation Environment
al Sustainability October, 2006
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Weve been dealing with jobs, healthcare,
community involvement, product sourcing,
diversity and environment from a defensive
posture
when in fact they represent gateways for
Wal-Mart in becoming the most competitive and
innovative company in the world.
- Lee Scott, 21st Century Leadership, Oct 2005
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Wal-Mart Corporate Environmental Sustainability
Goals

• To be supplied 100 by renewable energy
• Stores 25 more
• efficient in 7 years
• Fleet 25 more
• efficient in 3 years

• To create zero waste
• 25 reduction in
• solid waste in 3 yrs

• To sell products that sustain resources
  environment
• 20 supply base aligned in 3 years

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Todays Networks
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• Why?
• 1) To be over-compliant respond to our
  next critics
• 2) Great Return On Investment !
• 3) Population growth consumption of natural
  resources has accelerated beyond even our
  belief! Right thing to do for our kids!

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Wal-Mart Environmental Sustainability Networks

• Food/Agriculture Textiles
• Construction Seafood
• Packaging Operations
• Jewelry Greenhouse Gas
• Global Logistics Alternate Fuel
• Forest Products Electronics
• China Chemical Intensive

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Global Logistics Environmental Sustainability
Network

• Influence reduction in emissions across the
  Global Supply Chain
• Identify/measure the footprint
• Evaluate initiatives to implement
• Change the Game in US Transportation !
• 25 Fuel Efficiency 2007
• 100 Fuel Efficiency 2015
• Reduce energy use Recycle in DCs

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Wal-Mart Private Fleet

• 8010 Driver Associates (4 annual turnover)
• 1500 Maintenance Shop Associates
• 1900 Office Associates
• 42 terminals, 4 Regional Operation Centers
• 6845 Tractors
• 43,650 Trailers
• 1 Billion Miles/Year
• 1.8 Million Store Deliveries
• 1.3 Million Backhaul Loads from Suppliers
• Safest Fleet in US (per ATA) 8 of last 9 years
• 99.8 On-Time service level

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Transportation Efficiency

• Choose channels that are most cost efficient
  and reliable
• As a rule optimized supply chains are most
  environmentally friendly
• Avoid congestion risk by maintaining multiple
  channels or multiple distribution points

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Global Logistics Environmental Sustainability
Network

• Influence reduction in emissions across the
  Global Supply Chain
• Identify/measure the footprint i.e. delivery
  schedules, traffic issues etc
• Evaluate initiatives to implement
• Change the Game in US Transportation !
• 25 Fuel Efficiency 2007
• 100 Fuel Efficiency 2015
• Reduce energy use Recycle in DCs

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25 Fuel Efficiency 2007

• Fuel Efficient Tires 6
• APU 8
• Fuel Additive 1.6
• Weight Reduction .05
• Aero Package (Truck) 3
• Aero Package (Trailer) 6.25
• New Prostar Truck 4
• Other ????
• Total
  28.9

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Logistics Environmental Sustainability Wins!

• Recycling Initiatives implemented
• H-Cell Lift Truck Testing
• Transportation EPA Smart Way Member
• Clean Cargo Sustainable Global Transportation
  Group Member
• APU Truck Fleet implemented
• 100,000 metric tons of CO2 eliminated
• 22.5m saved annually (10 million gallons)

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100 Fuel Efficiency 2015

• Aerodynamics (25)
• New Trailer Design
• New Truck Platform
• Other Initiatives
• Regulations Length / Weight / Speed
• Training / Education
• Operations MT Miles / Avg. Distance / Doubles
• Water Conservation

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100 Fuel Efficiency 2015

• Other Initiatives Continued
• Nitrogen Tire inflation
• Hybrid Diesel/Electric
• Exhaust Energy Recovery
• Brake Energy Recovery
• Driver Training
• Propane Burn system - Red Rooster Boost system
• Hydrogen injection
• Electric APU
• Tire Inflation/Goodyear Fuel Efficient Duels
• Fleet segmentation

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Auxiliary Power Supply (APU)
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Aerodynamic Truck
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• Auxiliary Power Units
• Reduces emissions
• No Idling Policy
• Saves fuel
• Driver comfort
• 100,000 Metric tons eliminated
• 25 million saved

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Hybrid Vehicles in Corporate Fleet

• Civic Hybrid

• Toyota Prius

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BaselineCurrent Tractor / Trailer configuration
2005
2507Possible next generation Tractor / Trailer
Configuration / Still under evaluation