Ahold Transport Perspective on 2015 2025 Mark van der Drift, Senior - PowerPoint PPT Presentation

Ahold Transport Perspective on 2015 – 2025 Mark van der Drift, Senior Director Ahold Transport

Ahold • International food retailer • 3.100 stores • 218.000 employees • € 30.3 billion sales • Omni-channel

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses • 4 Returns Warehouses

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses • 4 Returns Warehouses • Gall&Gall: • 1 National Warehouse

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses • 4 Returns Warehouses • Gall&Gall: • 1 National Warehouse • Etos: • 1 National Warehouse

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses • 4 Returns Warehouses • Gall&Gall: • 1 National Warehouse • Etos: • 1 National Warehouse • Hubs (Etos+Gall) • 7 Hub Locations

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses • 4 Returns Warehouses • Gall&Gall: • 1 National Warehouse • Etos: • 1 National Warehouse • Hubs (Etos+Gall) • 7 Hub Locations • Albert Heijn Online • 3Home Shop Centers • 10 Hubs • 30 pickup points

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses • 4 Returns Warehouses • Gall&Gall: • 1 National Warehouse • Etos: • 1 National Warehouse • Hubs (Etos+Gall) • 7 Hub Locations • Albert Heijn Online • 3 Home Shop Centers • 10 Hubs • 30 pickup points • Suppliers • 100+ suppliers

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses • 4 Returns Warehouses • Gall&Gall: • 1 National Warehouse • Etos: • 1 National Warehouse • Hubs (Etos+Gall) • 7 Hub Locations • Albert Heijn Online • 3 Home Shop Centers • 10 Hubs • 30 pickup points • Suppliers • 100+ Suppliers of Ahold • Stores • 2000+ Store Locations

The challenge for Ahold Transport……. • Albert Heijn: • 4 Regional Warehouses • 2 National Warehouses • 3 External Warehouses • 2 Frozen Warehouses • 8 Bakery Warehouses • 4 Returns Warehouses • Gall&Gall: • 1 National Warehouse • Etos: • 1 National Warehouse • Hubs (Etos+Gall) • 7 Hub Locations • Albert Heijn Online • 3 Home Shop Centers • 10 Hubs • 30 pickup points • Suppliers • 100+ Suppliers of Ahold • Stores • 2000+ Store Locations • 25 vervoerders • 26.000 ritten per week • 400.000 ladingdragers per week • 1.000 – 1.200 vrachtauto’’s per dag

Ahold Benelux decided to centralize transport across all banners.. >2.000 store locations, 20 warehouses, 20 hubs, 100+ suppliers and Online locations Capture Scale Smart innovations Transparancy Effective operations 1000 – 1.200 trucks per day, >16.000.000 store orderable items per week, >400.000 load carriers per week, 100 FTE, 25 transport companies 16

In a challenging transport environment 25% of Ahold’s store locations not accessible with standard truck/trailer Emissions Safety Congestion Operational cost. Save to Invest Government restrictions Noise Accessibility 17

Challenges that are typically Dutch? Soon 70% of the population will live in city’s (MIT study on urbanization & mega -cities) • Selling space expensive • Limited backroom space, multiple deliveries a day • Lot of small stores in urban area’s, delivered from regional warehouses • Specific equipment needed to access stores. • Limited or controlled access in city-zones • Pressure on life quality by government and neighborhoods (customers), requires significant investments in silent and clean transport equipment

From pilot LNG to daily operation with menu silent & clean alternatives -22% Co 2 reduction in 4 years mainly due to more load & fuel efficiency k Hybrid – 18ton (4) LNG Truck (100+ and growing) Less noise & ZE last emission mile Silent Diesel Truck (100+ and growing) Plug-in Hybrid (??) Less ZE noise, urban 72 dB area

Although a lot is realized we have huge steps to go! …in 2025 our government demands zero emission transport inside the city centers AH neighbour: • Everything has to be there, but nothing should get there … • Silent, silent, silent, stricter than the law. • Disappeared exhaust emissions: Already forgotten.

SER (Dutch Social and Economic Council) Energy agreement Vision on a sustainable fuel mix 2030 – 2050 ZE truck-trailer necessary 2020-2025 ! 21

Safe, silent, clean and efficient transport 2015 - 2025 We alternative fuels to make significant steps in reducing Co 2 emissions and noise levels Short distance Regional National International > 20ton <20ton <4,25ton EV EV PHEV LNG-LBG / EV LNG-LBG PHEV LNG-LBG / LNG-LBG / Diesel / Diesel / (PH)EV (+PHEV?) LNG-LBG LNG

But there is more than just the truck and alterative fuels… Also trailers need to comply to zero emission regulations in 2025 • Q4 2013 pilot reefertrailer with energy axle • Q2 2015: 10 “ phase 2” New Cool reefer trailers • 1 enerqy axle • Solar cells on roof trailer • Li-ion battery • TRS refrigerator • Suitable for supermarket distribution and inter- DC transport • Zero-Emission & silent • High-potential

In case of hybrid or plug- in hybrid there are more options… Trucks and trailers working together on zero emission transport…new ideas to develop..

Platooning: Near future? Soon we pilot 2-way truck platooning on highways • Safety • Fuel reduction/ less Co 2 • Prevent traffic jams • Efficiency & Flexibility 00:00 06:00 12:00 18:00 23:59 25

Transport control tower From Looking together towards managing together • Improve communication with our carriers & warehouses & suppliers & stores & customers • Paperless processes • Trailer safety & temperature control • Alerts in case of exceptions • Transparency • Availability of parking places & unloading places at stores • Last miles truck guidance • Local road information & obstructions 26

Ahold’s way to develop and test all these new ideas… Make it profitable or break- even from day one… if the scale potential is there.. 1. Projects in triangle Manufacturer – Transport Company - Ahold Transport 2. Transparancy - Open Cost Calculation - More than 3 “angles” not easy but possible (LNG!) 3. Pilot from start in operational environment Service, analysis, backup-scenario 4. Pilot needs view on -Positive business case without subsidy -Large-scale deployment in the foreseeable future

Thanks for your attention! Believe ANYTHING is possible!