Green Transportation for Business: It Pays!
December 5, 2014
Sustainable Business Network Hosts Frito Lay Fleet Innovators
Photo Credits: Justin Schwartz
The fleet division of Frito Lay was once only a footnote in the PepsiCo annual report.
But since creating a vision in 2005 to become a world class fleet, Frito Lay has become
an industry leader in the use of alternative fuels and electric vehicles.
At a quarterly networking event hosted by the University of Dallas Sustainable Business
Network, a group of local business leaders heard from Steve Hanson and Ken Marko how
Frito Lay based its vision of becoming a world class fleet on the platforms of reliability,
sustainability, and capability. We knew that being able to put our products on the
shelf reliably while saving on fuel costs and carbon emissions would lead to improved
performance and improved service to our customers, said Marko, the companys Senior
Fleet Sustainability Manager. The goal of Frito Lays fleet division is a 50% reduction
in the use of traditional fuels by 2020.
Hanson, Director of Fleet Engineering for Frito Lay, explained to the group the logistical
problems associated with the transition of its tractor trailer fleet from traditional
to compressed natural gas vehicles, which currently make up 30% of the companys fleet.
In addition to working with manufacturers to create the trucks themselves, the company
had to invest in infrastructure associated with fueling stations large enough to service
tractor trailers. Frito Lay also invested heavily in the education of its drivers,
realizing that a company-wide culture of sustainability was necessary for the success
of the fleet transition. As a result of the companys commitment to alternative fuels,
the tractor trailer fleet has saved 5,000,000 gallons of diesel and 13,000 metric
tons of emission annually.
Another integral part of Frito Lays commitment to sustainability is its shift to electric
box trucks for its short-range delivery drivers. Marko explained that the company
took advantage of government stimulus money to launch its electric vehicle program
by buying 155 trucks before they had even committed to a pilot program. It was a risk.
It was not practical, but it was the right thing to do, said Marko. One of the key
components of the success during this transition was the education of the route drivers.
Because these drivers are commissioned salespeople, their buy-in was crucial to the
companys sustainability plan. Our people see the long term benefits of electric vehicles.
I spoke to a driver who said, I dont want to contribute to the pollution my grandkids
will have to clean up, said Marko. Frito Lays goal is to have the largest box truck
fleet in the world and to eliminate 500 million gallons of diesel and five metric
tons of CO2 from the environment.
Following the presentations, Hanson, Marko, and Cynthia Baker, Director of Corporate
Communications for PepsiCo, took questions from the audience about the logistics of
the companys sustainability plan. The speakers encouraged audience members to contact
them personally for more information about the companys fleet program.
The University of Dallas Sustainable Business Network (SBN) is an open forum for building
relationships, exchanging best practices and fostering dialogue around issues of corporate
social responsibility, sustainability and eco-innovation, and corporate governance.
Hosted by the AACSB-accredited Satish & Yasmin Gupta College of Business at the University
of Dallas, SBN hosts quarterly events and panel discussions on relevant topics led
by recognized industry experts.
SBNs next event will be held on March 20, 2015 at the corporate headquarters of Southwest
Airlines, where participants will learn about Southwests triple-bottom-line successes.
The event is an excellent opportunity to network with other business leaders from
the DFW area interested in sustainable business practices. Visit our website for more information.