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Click to edit Master title style                 Moving Iowa Forward                  Fuel Management                     ...
Click to edit Master title style                        www.jacobsonco.com   2
Proud History of ExpansionClick to edit Master title styleOver our 43-year history, Jacobson has evolved from a small ware...
Click to edit Master title styleJacobson Today   1st Warehouse operation opened in 1968              Service Profile by R...
End-to-End Supply Chain SolutionsClick to edit Master title style                                Warehousing & Order Fulf...
Jacobson LocationsClick to edit Master title style                                                                        ...
Click to edit Master title style                        www.jacobsonco.com   7
Fuel to edit ClickHistory Master title style                                                Weekly US Diesel Retail Prices...
How to edit MasterClickfar on $500? title style                                                                      March...
Operating ExpensesClick to edit Master title style                     2006                                               ...
Click to edit Master title style                        www.jacobsonco.com   11
Immediate and OngoingClick to edit Master title style Purchasing Focus                             Consumption Focus     ...
StrategicClick to edit Master title style Process & Partnership                                       Alternative Fuel Sou...
Click to edit Master title style                        www.jacobsonco.com   14
Click to edit Master title style                        www.jacobsonco.com   15
Fuel to edit Master title style  ClickOptimizer Origin: Des Moines, IA       Destination: Los Angeles, CA               Mi...
Timing Fuel Master title Click to editPurchases styleLocation: Marion, IN        Price Change = Tomorrow’s Price – Today’s...
Fuel to edit Master title styleClickConsumption Example Annual Miles               30,000,000                             ...
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Fuel Management

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Presented by Rob Jones, Jacobson Companies

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Transcript of "Fuel Management"

  1. 1. Click to edit Master title style Moving Iowa Forward Fuel Management www.jacobsonco.com
  2. 2. Click to edit Master title style www.jacobsonco.com 2
  3. 3. Proud History of ExpansionClick to edit Master title styleOver our 43-year history, Jacobson has evolved from a small warehouse-basedcompany into one of the largest fully integrated logistics providers in the US 1968 2002 1980 2004 1985 2006 1990 2007 1995 2008 2000 2009 2010 20111968 Opened 1st warehouse 2002 Opened first LMC outside of Des Moines & renewed focus on growing Carrier services 2004 Acquired by Norwest Equity Partners and management 2005 Acquired Bekins Logistics 2006 Acquired Phoenix-based Southwest Storage & Distribution 2006 Acquired St. Louis-based The Arthur Wells Group 2006 Acquired Atlanta-based Wilpak, Inc 2006 Oak Hill Acquired Arnold Logistics 2007 Acquired by Oak Hill & combined with Arnold Logistics 2008 Acquired Louisville-based Dixie Warehouse Services 2009 Brian Lutt joins as CEO. Restructure organization (CLS/TLS) 2010 Launch International Logistics Services (ILS) 2010 Acquires Global Transportation Services Inc. 2011 January - Establish legal entity Jacobson Global Logistics, Ltd in Hong Kong 2011 January - Acquire Hong Kong based Chimerica Global Logistics, Ltd (CGL) 2011 February – Strategic Partnership formed with European company Rhenus Logistics 2011 August – Acquire Singapore based G-Link Express Logistics www.jacobsonco.com 3
  4. 4. Click to edit Master title styleJacobson Today 1st Warehouse operation opened in 1968 Service Profile by Revenue Corporate Headquarters – Des Moines, Iowa “Top 3” U.S. 3PL Managing 35 Million SF 197 sites serving over 1,500 customers ISO 14001:2004 Certified Industry Vertical by Revenue Asset Light U.S. Domestic Transportation and Freight Management business 545+ Tractors and 1,930+ Trailers $600 Million in freight under management www.jacobsonco.com 4
  5. 5. End-to-End Supply Chain SolutionsClick to edit Master title style  Warehousing & Order Fulfillment (Dedicated and Multi-Tenant) Contract Logistics  Secondary Packaging & Project Management  Contract Manufacturing  Reverse Logistics  Short/Long Term Staffing Solutions  Facility Network Design & Planning  Manufacturing Support  High technology WMS solutions - Tier 1 WMS & ERP  Full Truck Load Capacity Mgmt Transportation Logistics  Cross-Dock/Freight Consolidation  Over–the–Road Solutions  Dedicated Contract Carriage  Freight Management  Mode Optimization  Freight Bill Audit & Payment  Transportation Management System (LINCS™)  Ocean & Airfreight Forwarding International Logistics  Consolidation at Origin  Customs House Brokerage  Deconsolidation & Trans loading  Sea/Air Programs  International & Domestic Warehousing, Transportation & Packaging  Project Cargo Services  Tracking &Tracing Tools www.jacobsonco.com 5
  6. 6. Jacobson LocationsClick to edit Master title style Offices Jacobson/Rhenus Partners/Agencies Dedicated Operations Bulk Dedicated OperationsDedicated Distribution Ctrs Cross Dock OperationsMulti-Tenant Distribution Ctrs Load Management Centers www.jacobsonco.com 6
  7. 7. Click to edit Master title style www.jacobsonco.com 7
  8. 8. Fuel to edit ClickHistory Master title style Weekly US Diesel Retail Prices$5.000$4.500$4.000$3.500$3.000$2.500$2.000$1.500$1.000$0.500 $- 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 The Department of Energy projects diesel will average $4.21/gallon this summer, staying above $4.00 into 2013. Source: U.S. Energy Information Administration www.jacobsonco.com 8
  9. 9. How to edit MasterClickfar on $500? title style March, 2012 $4.127/gallon March, 1999 $0.997/gallon February, 2005 $2.027/gallon May, 2010 $3.069/gallon April, 2003 $1.533/gallon Assuming 6 MPG www.jacobsonco.com 9
  10. 10. Operating ExpensesClick to edit Master title style 2006 2011 Fuel Fuel While a fuel surcharge or fuel peg adjustment Unprotected fuel expense provides some relief, there remains a gap that $ widens as fuel prices continue to escalate. $2.00 $2.50 $3.00 $3.50 $3.75 $4.00 $4.25 $/Gallon Fuel Expense Fuel Recovery Increased expense continues to be spread across the supply chain. www.jacobsonco.com 10
  11. 11. Click to edit Master title style www.jacobsonco.com 11
  12. 12. Immediate and OngoingClick to edit Master title style Purchasing Focus Consumption Focus  Bulk fuel  Improve MPG  Price negotiations  Equipment  Fuel optimizer  Maintenance  Purchasing discipline (are drivers  Driver fueling at ‘network’ stops?)  Reduce empty miles  Purchase timing  Reduce out-of-route miles  Hedging  Recruit ‘in network’ drivers  Training www.jacobsonco.com 12
  13. 13. StrategicClick to edit Master title style Process & Partnership Alternative Fuel Sources  Reduce unproductive miles  Natural Gas (company trucks, owner  Compressed natural gas operators, partner carriers)  Liquefied natural gas  Route optimization  Liquefied Petroleum Gas – Fewer miles – Continuous move opportunities (Propane)  Shipment consolidation and  Biodiesel distribution  Ethanol – Reduce the amount of ‘air’ being transported  Network evaluation  Getting closer to customers and suppliers – Sourcing alternatives – Mode shift – Freight terms Source: U.S. Department of Energy www.jacobsonco.com 13
  14. 14. Click to edit Master title style www.jacobsonco.com 14
  15. 15. Click to edit Master title style www.jacobsonco.com 15
  16. 16. Fuel to edit Master title style ClickOptimizer Origin: Des Moines, IA Destination: Los Angeles, CA Miles: 1,775 Fuel Level: 100 gallons Tank Capacity: 240 gallons MPG: 6.2 mpg Pump Effective Pump EffectiveCity St Price Cost Gallons City St Price Cost GallonsDES MOINES IA $3.760 $3.535 140 MILAN NM $3.929 $3.719 0KEARNEY MO $3.705 $3.535 0 GALLUP NM $3.919 $3.709 0N KANSAS CITY MO $3.821 $3.651 0 JAMESTOWN NM $3.941 $3.731 0OTTAWA KS $3.834 $3.574 0 JOSEPH CITY AZ $3.913 $3.653 0BETO JUNCTION KS $4.019 $3.759 0 WINSLOW AZ $3.924 $3.664 0EMPORIA KS $3.843 $3.583 0 BELLEMONT AZ $3.903 $3.643 0HOOKER OK $3.797 $3.667 0 KINGMAN AZ $3.858 $3.598 165TUCUMCARI NM $3.875 $3.665 69 KINGMAN AZ $3.913 $3.653 0SANTA ROSA NM $3.946 $3.736 0 LAKE HAVASU CITY AZ $3.930 $3.670 0MORIARTY NM $3.956 $3.746 0 BARSTOW CA $4.090 $3.743 0ALBUQUERQUE NM $3.917 $3.707 0 ONTARIO CA $4.051 $3.704 0 www.jacobsonco.com 16
  17. 17. Timing Fuel Master title Click to editPurchases styleLocation: Marion, IN Price Change = Tomorrow’s Price – Today’s Price If Price Change <= ($0.020) then Fuel TomorrowTiming: ~ 13:00 CST If Price Change >= $0.020 then Fuel Today JTLS Price Fuel Date Price Change Recommendation12/13/2011 $3.312 ($0.023) Fuel Tomorrow - Prices will be 2.3 cents lower12/14/2011 $3.289 $0.020 Fuel Today - Prices will be 2.0 cents higher12/15/2011 $3.309 ($0.082) Fuel Tomorrow - Prices will be 8.2 cents lower12/16/2011 $3.227 $0.000 N/A12/17/2011 $3.227 ($0.013) N/A12/18/2011 $3.215 $0.000 N/A12/19/2011 $3.215 $0.000 N/A12/20/2011 $3.215 ($0.061) Fuel Tomorrow - Prices will be 6.1 cents lower12/21/2011 $3.154 $0.076 Fuel Today - Prices will be 7.6 cents higher12/22/2011 $3.230 $0.051 Fuel Today - Prices will be 5.1 cents higher12/23/2011 $3.281 www.jacobsonco.com 17
  18. 18. Fuel to edit Master title styleClickConsumption Example Annual Miles 30,000,000 Annual Miles 30,000,000 MPG 6.00 MPG 6.10 Gallons 5,000,000 Gallons 4,918,033 Fuel price $4.210 Fuel price $4.210 Raw Fuel Cost $21,050,000 Raw Fuel Cost $20,704,918 Percentage Miles Percentage Miles OOR 9.50% 2,850,000 OOR 9.00% 2,700,000 Non-OOR 27,150,000 Non-OOR 27,300,000 MT 12.50% 3,393,750 MT 12.00% 3,276,000 Loaded 87.50% 23,756,250 Loaded 88.00% 24,024,000 Fuel Surcharge Rate $0.50 Fuel Surcharge Rate $0.50 Fuel Surcharge Revenue $11,878,125 Fuel Surcharge Revenue $12,012,000 Net Fuel Cost $9,171,875 Net Fuel Cost $8,692,918 Fuel Cost/Mile $0.306 Fuel Cost/Mile $0.290 CO2 Emissions 50,420 metric tons CO2 Emissions 49,593 metric tons Reduction to net fuel cost of $479,000 www.jacobsonco.com 18
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