View all resources

At a large distribution client with last mile delivery, a joint Kearney & client team defined a roll out plan with up to 50% CAPEX reduction on initial estimates, with an improved TCO

Reduce the cost of fleet transition at the depot.

Sector:

Fleet operator

Client:

US-last mile delivery company

Lead:

Joint Kearney-Cenex-EV8 project

Path

Situation

  • The client has embraced the responsibility and need to lead on decarbonisation and has set ambitious goals. Electrification of the fleet is a big step towards achieving this.
  • At a depot level, proposals provided by the facilities team for the sites infrastructure exceed expectations & budget.
  • The site infrastructure costs threatened progress on the depot electrification plans and affordability of wider implementation of decarbonised logistics solutions across the network.
  • The team sought ways to reduce the cost of fleet transition at the depot – as a real-world example to guide lower costs of subsequent sites.

Approach:

The joint Kearney/ client team evaluated existing site technical assessment and proposal to:

  • Identify and define initiatives to reduce cost of site infrastructure
  • Develop fleet roadmap and transition plan
  • Quantify impact of technical & commercial interventions in a revised site infrastructure plan
  • Capture and package learnings from this exercise that provide useful inputs to a wider logistics decarbonisation strategy & roadmap
} Path

Output/Impact

  • Roadmap outlined including:
    – Recommendation transition of clusters of routes as a pilot in 2024; full transition by 2027
    – Managed charging to be procured to allow all vehicle load to come under existing import capacity
    – Full groundworks and make-ready installation in 2024 is proposed due to operational benefit and lowest cost of installation
  • Optional solar installation on small % of the roof area will increase site resilience and protect the client from energy market price volatility
  • Total CO2 emissions saved by 2035 from fleet electrification is circa 7k tonnes for the initial pilot. Extrapolated to addressable sites estimation is 150-200k tonnes.
  • The estimated total cost of fleet electrification represented up to 50% reduction on initial quotes