December 2014 Event

Green Transportation for Business: It Pays!

December 5, 2014

PepsiCo

 

SBN Frito Lay

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.

News

When Foresight Is 20/20: Endowment Gains 27 Percent in One Stroke Thanks to $10 Investment 24 Years Ago

At a time when many small liberal arts universities are struggling, the University of Dallas has some good news to offer: The strategic sale of the apartment complex owned by the university for 24 years has increased the endowment by nearly 27 percent, or $16 million, bringing the current value to over $76 million. Further, this increase is predicted to eventually generate an additional $800,000 annually for UD's operations, capital and maintenance budgets.

+ Read More