Presented by Matt Schultz, Private Fleet Manager, Kraft Foods, at the Wisconsin Clean Cities Idle Reduction Workshop on August 21, 2012.

1. Private Fleet Overview
Summer 2012

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3. Kraft Private Fleet
Mission Statement
The Kraft Private Fleet will provide world class
transportation services through industry leading safety
results, superior customer service, & effective cost
management.
The Fleet will also provide strategic and tactical
benchmark capabilities that enable collaboration and
innovation efforts across the Supply Chain.

4. Private Fleet Profile
• 11 TERMINAL LOCATIONS:
– Ontario, CA
– Visalia, CA
– Champaign, IL
– Aurora, IL
– New Ulm, MN
– Springfield, MO
– Fort Worth, TX
– Madison, WI
– Fair Lawn, NJ (Snacks)
– Lehigh Valley, PA
– AMPDC
• Service Kraft Warehouse Delivered and DSD networks
• ~15% of total Kraft Transportation volume vs 7.5% of spend
• Average Length of haul = 170 miles
• Freight Profile = 40% customer, 33% inter-company, 24% inbound, 3% ICC
• ~100,000 loads per year
• ~20MM miles
• ~20% empty miles
• 225 Tractors equipped with PeopleNet on-board computers
• 800 Trailers equipped with Skybitz Trailer tracking

5. 2012 Highlights & Areas of Focus
• Safety
– 2.03 (2012) incident rate YTD vs. 3.51 (2011), 3 total incidents
– 1.73 (2012) Preventable rate YTD vs. 1.37 (2011), 13 preventable accidents
• Service
– Carrier of choice
– Focusing on all areas including OTD, ORDD, CRDD and complete EDI
– Evaluating LTL to improve service to Kraft and to increase asset utilization
• Productivity
– Cost control efforts
– Asset utilization (labor and equipment)
• PF Increase of > 6000 loads TY vs LY with 19 more assets
– On target to achieve $4MM goal
• Fuel Conservation improvements
– 6.2 MPG 2011 vs. 6.6 MPG YTD 2012 (finished LY at 7.0 and on target to
exceed)
– 7.5% idle 2011 vs. 4.6% idle YTD 2012
• Evaluation of placement of assets and size of Fleets

6. Kraft Foods Private Fleet
Madison Terminal
• 21 Employees
– 1 Fleet Mgr / 1 Fleet Coordinator
– 19 Drivers
• 16 Tractors
– 1 2007 Volvo Sleeper Tractor
– 10 2008 Volvo Sleeper Tractors
– 2 2009 Volvo Sleeper Tractors
– 2 2011 Volvo Day Cabs
– 1 Long Term Rental (2011 International Sleeper)
• Metrics
– 6.6 YTD MPG vs 6.9 2012 Goal
– 4.5% Long Idle vs 5.0% 2012 Goal
– 16% Cruise Control usage vs 14.5% Goal
• Runs
– WI, MN, IA, IL, MO, IN, OH, MI
– Average run approximately 250 to 300 miles

7. Idle Reduction Strategies
• Based on a Global to Local approach
– Kraft Private Fleet is a “SmartWay Certified Carrier.”
• SmartWay is a public/private collaboration between the USEPA and
the freight transportation industry that helps freight shippers,
carriers, and logistics companies improve fuel-efficiency and save
money.
– Kraft Foods Sustainability Department
• Kraft Foods is dedicated to minimizing the negative impact it
potentially has to our environment.
• Kraft Foods 7 focus areas of environmental protection: agricultural
commodities, packaging, energy, water, waste, CO2 reduction and
transportation/distribution.
– PeopleNet OBC usage and Data Mining
• MPG
• Idling
• Cruise Control Usage
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8. Idle Reduction Technologies
• Range from Complex to Simple
– Engine Control Module (ECM)
• Controls engine function to keep it running at peak levels
• Gathers raw data from all engine sensors
• PeopleNet pulls raw data and organizes it for us to track our
equipment operation and develop strategies for its optimal use.
– Auxiliary Power Units (APUs) / TriPac by ThermoKing
• Powers tractor functions when not in motion
• Runs electronics, heaters, A/C on significantly less fuel
– Idle Shut Down Switches
• Automatically shuts down vehicle when it has been idle for a
specified / programmed period of time
– Tractor Ignition Switch
• Driver simply shuts off vehicle when it is parked for any length of
time.
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9. Other Components to Sustainability
in Transportation
• MPG; the touchstone by which we measure how
productive we are as a Fleet.
• MPG stays the same, but our production by weight
has increased. How is that possible?
– Lighter aluminum components (vs more durable steel)
in our equipment allows us to haul heavier loads but
still be under 80,000 lbs. gvw.
– Wide base single tires
– Reduced fuel tank sizes from 200 gal. to 120 gal.
– Reduced cab heights
– Auto inflated tires keep psi up until repairs are made.
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10. Other Components to Sustainability
in Transportation
• New technologies come on line all the time. Too
many to list.
• Kraft always trying to stay ahead of Federal Regs
mandating equipment upgrades every year.
– Private Fleet volunteers to test new technologies:
– Fender skirts on tractors and trailers
– New materials
– New designs
• Improving MPG to load weight ratio has not
compromised driver comfort / amenities.
– Added storage space for driver amenities
– Drivers have input on tractors we spec.
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