Associated Grocers of Maine Inc.

Fuel Costs Nearing $80 a Barrel

How can AGME absorb the cost Without:

• Increasing Cost of Goods?

•Decreasing The Number of Deliveries?

•Negatively Effecting The Customer?

“Maximizing The Fleet”What can we gain?

Classification Guide Line

• C-Stores Considered as > $5000 Per Week.

• Superette Considered as < $5000 > $10000 Per Week.

• Supermarket Considered < $10000 Per Week.

CURRENT AGME CUSTOMER BASE

Ret

aile

r C

ount

13

4

Ret

aile

r C

ount

77

Ret

aile

r C

ount

84

0

20

40

60

80

100

120

140

Customer Count

C-Store Superette Supermarket

Vehicle Usage46

21

17

2321

0

25

19

28

0

1717

8

242526

36

22

36

24

4547

05101520253035404550

943

944

756

757

758 58 59 60 61 62 63 64 657

107

108

109

110

980

886

887

888

889

Fleet Utilization%Used

22 Tractor Trailer Combinations

Weekly Fixed / Variable Per Tractor Trailer

$719.54$730.25$732.97

$771.27$636.37

$707.40$717.73

$700.08$732.57

$714.45$786.12

$712.41$751.44

$809.96$781.20

$756.05$658.05

$694.04$788.53

$758.14$727.67

$763.41

$0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00 $900.00

976245

948655

948654

323462

323463

948651

948653

323457

323460

304932

323464

304931

323461

323466

323458

976246

323465

304933

416058

938107

416059

938108

Uni

t #

IncludesFixed Asset

Mileage Charge.Refer Charge

Weekly Fuel & Driver Wage/Benefit

$1,276.52$1,008.00

$1,515.36$1,582.28

$1,380.40$1,396.92

$1,469.16$165.20

$1,164.24$1,755.32

$1,167.88$0.00

$1,634.92$1,564.64

$1,370.32$1,592.36

$1,577.80$1,548.12

$1,613.08$1,605.801602.16

$0.00

$0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 $1,600.00 $1,800.00 $2,000.00

976245

948655

948654

323462

323463

948651

948653

323457

323460

304932

323464

304931

323461

323466

323458

976246

323465

304933

416058

938107

416059

938108

Uni

t #

IncludesFuel Costs

Driver WagesBenefits

WEEKLY GRAND TOTAL BY TRUCK AND DRIVER

$2,687.89$2,590.69

$2,930.72$3,125.59

$2,164.67$2,877.99$2,904.10

$1,276.00$2,469.02

$3,014.34$2,786.47

$1,239.27$3,034.91

$3,292.73$3,101.51

$3,198.48$2,406.46

$3,348.86$3,177.88

$3,033.91$3,022.68

$1,494.01

$0.00 $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $3,000.00 $3,500.00 $4,000.00

976245

948655

948654

323462

323463

948651

948653

323457

323460

304932

323464

304931

323461

323466

323458

976246

323465

304933

416058

938107

416059

938108

Uni

t #

The Average Hourly Rate By Truck & Driver = $55.00

C-Stores Within 125 Mile Radius

4734

142

0

20

40

60

80

100

120

140

160

Leg Time

C-StoreSuperetteSupermarket

85

37

125

0

20

40

60

80

100

120

140

Unloading

C-StoreSuperetteSupermarket

Breakdown By Leg Time & Unloading Time

Material Handling Products

$377,520

$204,776

$764,039

$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000

Annual Cost

C-StoreSuperetteSupermarket

Annual Cost By Classification

C-Store Statisticsin >125 Mile Class

Weekly Cubic Volume Equates To Approximately 8000 Cube or 5

Tractor Trailer Loads. The Elimination of Four (4) Tractors and Five (5) Trailers Equates to

an annual Savings of $142000.00 in Fixed Assets Alone! Increased Selection Productivity due to order merge and batch picking. Increase Fleet Utilization From 15% to 20%. Predictable Delivery Times For The Supermarket/Superette Class. Reduction of unloading time with in store roll cage delivery. Average Stops Per Route In The Supermarket/Superette Class Will

Decrease to 3 While the C-Store Stops Per Route Will Increase To 15.

2030

4030

40 50

74 75

129

0

20

40

60

80

100

120

140

Best In Class Average Worst In Class

C-STORE SUPERETTE SUPERMARKET

Average Unloading Time By Class

Annual Reduction in $$$$By Class

$121,550

$20,020

$48,620

$0$20,000$40,000$60,000$80,000

$100,000$120,000$140,000

Annual Reduction

C-StoreSuperetteSupermarket

Potential Savings All Classes

Implementation Time LinePhase # 1

Give Affected Retailers a 30 Day Notice of Delivery Schedule Change To Take Effect Mid September.

Phase # 2

Have Detailed Delivery Schedule Prepared For September Board Meeting.

Phase # 3

Negotiate Phasing In Straight Trucks with Ryder Representative.

Conclusion

Annual Cost Reduction

$142000 Fleet Reduction

$190190 in Retail/Driver Productivity

$125000 in Warehouse Selection Productivity

$55300 In Fixed Assets By Converting 4 Straight Trucks

Grand Total Potential Annually $512490