1. Associated Grocers of Maine Inc.

2. Fuel Costs Nearing $80 a Barrel
How can AGME absorb the cost Without:
• Increasing Cost of Goods?
•Decreasing The Number of Deliveries?
•Negatively Effecting The Customer?

3. “Maximizing The Fleet”
What can we gain?

4. Classification Guide Line
• C-Stores Considered as > $5000 Per Week.
• Superette Considered as < $5000 > $10000
Per Week.
• Supermarket Considered < $10000 Per
Week.

5. CURRENT AGME
CUSTOMER BASE
RetailerCount
134
RetailerCount
77
RetailerCount
84
0
20
40
60
80
100
120
140
Customer Count
C-Store Superette Supermarket

6. Vehicle Usage
46
21
17
23
21
0
25
19
28
0
1717
8
24
25
26
36
22
36
24
45
47
0
5
10
15
20
25
30
35
40
45
50
943
944
756
757
758
58
59
60
61
62
63
64
657
107
108
109
110
980
886
887
888
889
Fleet Utilization%
Used
22 Tractor Trailer
Combinations

7. Weekly Fixed / Variable Per Tractor Trailer
$719.54
$730.25
$732.97
$771.27
$636.37
$707.40
$717.73
$700.08
$732.57
$714.45
$786.12
$712.41
$751.44
$809.96
$781.20
$756.05
$658.05
$694.04
$788.53
$758.14
$727.67
$763.41
$0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00 $900.00
976245
948655
948654
323462
323463
948651
948653
323457
323460
304932
323464
304931
323461
323466
323458
976246
323465
304933
416058
938107
416059
938108
Unit#
Includes
Fixed Asset
Mileage Charge.
Refer Charge

8. Weekly Fuel & Driver Wage/Benefit
$1,276.52
$1,008.00
$1,515.36
$1,582.28
$1,380.40
$1,396.92
$1,469.16
$165.20
$1,164.24
$1,755.32
$1,167.88
$0.00
$1,634.92
$1,564.64
$1,370.32
$1,592.36
$1,577.80
$1,548.12
$1,613.08
$1,605.80
1602.16
$0.00
$0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 $1,600.00 $1,800.00 $2,000.00
976245
948655
948654
323462
323463
948651
948653
323457
323460
304932
323464
304931
323461
323466
323458
976246
323465
304933
416058
938107
416059
938108
Unit#
Includes
Fuel Costs
Driver Wages
Benefits

9. WEEKLY GRAND TOTAL BY TRUCK AND DRIVER
$2,687.89
$2,590.69
$2,930.72
$3,125.59
$2,164.67
$2,877.99
$2,904.10
$1,276.00
$2,469.02
$3,014.34
$2,786.47
$1,239.27
$3,034.91
$3,292.73
$3,101.51
$3,198.48
$2,406.46
$3,348.86
$3,177.88
$3,033.91
$3,022.68
$1,494.01
$0.00 $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $3,000.00 $3,500.00 $4,000.00
976245
948655
948654
323462
323463
948651
948653
323457
323460
304932
323464
304931
323461
323466
323458
976246
323465
304933
416058
938107
416059
938108
Unit#
The Average Hourly Rate By
Truck & Driver = $55.00

10. C-Stores Within 125 Mile
Radius

11. 47
34
142
0
20
40
60
80
100
120
140
160
Leg Time
C-Store
Superette
Supermarket
85
37
125
0
20
40
60
80
100
120
140
Unloading
C-Store
Superette
Supermarket
Breakdown By Leg Time &
Unloading Time

12. Material Handling Products

13. $377,520
$204,776
$764,039
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Annual Cost
C-Store
Superette
Supermarket
Annual Cost By Classification

14. C-Store Statistics
in >125 Mile Class
 Weekly Cubic Volume Equates To Approximately 8000 Cube or 5
Tractor Trailer Loads.
 The Elimination of Four (4) Tractors and Five (5) Trailers Equates to
an annual Savings of $142000.00 in Fixed Assets Alone!
 Increased Selection Productivity due to order merge and batch picking.
 Increase Fleet Utilization From 15% to 20%.
 Predictable Delivery Times For The Supermarket/Superette Class.
 Reduction of unloading time with in store roll cage delivery.
 Average Stops Per Route In The Supermarket/Superette Class Will
Decrease to 3 While the C-Store Stops Per Route Will Increase To 15.

15. 20
30
40
30
40
50
74 75
129
0
20
40
60
80
100
120
140
Best In Class Average Worst In Class
C-STORE SUPERETTE SUPERMARKET
Average Unloading Time By
Class

16. Annual Reduction in $$$$
By Class
$121,550
$20,020
$48,620
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Annual Reduction
C-Store
Superette
Supermarket
Potential Savings All Classes

17. Implementation Time Line
Phase # 1
 Give Affected Retailers a 30 Day Notice of Delivery Schedule
Change To Take Effect Mid September.
 Phase # 2
 Have Detailed Delivery Schedule Prepared For September Board
Meeting.
 Phase # 3
 Negotiate Phasing In Straight Trucks with Ryder Representative.

18. Conclusion
 Annual Cost Reduction
 $142000 Fleet Reduction
 $190190 in Retail/Driver Productivity
 $125000 in Warehouse Selection Productivity
 $55300 In Fixed Assets By Converting 4 Straight Trucks
 Grand Total Potential Annually $512490