case study

A leading provider of beverages and food products headquartered in the Southeast offers a broad portfolio of beverages including water, soda, sports drinks and more. Known for their innovation and growth, the company manages more than 1,000 beverage SKUs and manufactures nearly a billion units each year.

Seasonal demand and a complex supply chain have made their operations uniquely dynamic. The bottling industry is highly sensitive to seasonality, with demand peaking during the summer months from Memorial Day to Labor Day, referred to as “100 days of summer.” Major holidays and weather patterns further influence demand, requiring a responsive and adaptive supply chain strategy.

Initial Challenges

A long-time Penske Truck Leasing customer, the bottler initially leased hundreds of vehicles from Penske for their transportation needs. To enable scale during peak seasons, many drivers were leased or temporary. When the company began to experience a high driver accident rate that resulted in costly product losses and safety risks, they turned to Penske Logistics for solutions.

Transportation Management

The bottler was in need of reducing risk for their fleet operations but were concerned about maintaining the high level of service to their customers if they outsourced their transportation to Dedicated Contract Carriage (DCC). Penske Logistics performed an operational assessment to evaluate their operations and proposed a solution to outsource a complicated portion of their transportation between manufacturing and the distribution center. The bottler opted to maintain transportation from distribution centers to their customers at retail stores.

Penske Logistics converted their private fleet to DCC for routes into distribution centers, reducing accidents and ensuring safer, more reliable deliveries.

Additionally, the peak weeks required a significant increase in trucking capacity, nearly double the normal volume. Recognizing these challenges, Penske implemented solutions to improve fleet utilization and transportation efficiency, reduce risks and implement technology to improve planning and forecasting.

Penske’s agile approach ensures scalability, deploying additional trucks and drivers to meet demand while maintaining seamless operations during off-peak periods.

Managing Seasonal Fluctuations

Before partnering with Penske Logistics, the bottler utilized a broker model to meet demand during peak seasons. This method led to unpredictable costs as there was a lack of load visibility, contracted rates, on-time deliveries and oversight beforehand.

The bottler found that a multi-service model like Penske Logistics — which combines truck leasing and maintenance for final-mile deliveries fleet, dedicated contract carriage to efficiently handle their complex delivery network and freight management (FM) for overflow — would allow the bottler to flex as needed during high-demand periods, ensuring uninterrupted movement of goods.

Utilizing support from Penske Logistics’ vast and reliable carrier network, the bottler found flexibility and cost savings, reduced exposure to volatile spot market rates, and other benefits, and was even able to upgrade their franchises to regional hubs when the company began experiencing exponential growth.

Penske’s tailored solutions and commitment to excellence have been instrumental in supporting their continued success.

Customized Technological Integration

Beverage retail is a highly competitive industry with more choices for consumers than ever before and counting. The bottler realized that they needed to improve their technology systems to operate efficiently and gain a competitive advantage. They struggled with implementation, managing yard operations, monitoring KPIs and tracking transportation spend. The bottler’s preference for tailored solutions led Penske Logistics to implement technologies and develop custom dashboards for more operational visibility.

Dock Scheduler

Transitioning from a manual whiteboard system to a dock scheduler provided real-time updates, streamlining operations across 10 franchise locations and outside carriers.

KPI Dashboard

Penske Logistics developed a Business Intelligence dashboard for the bottler, enabling them to track key performance indicators and make data-driven decisions. The bottler’s core operating team at Penske Logistics analyzes this data in weekly roundtables and monthly reviews.

Financial Reporting

Penske Logistics also developed an annual business forecast, submitting a detailed budget each November to guide financial planning. Monthly reviews are held to compare actual versus projected expenses across billing groups, ensuring cost transparency and identifying key financial impacts.

Geographic Cost Tracking

Monitoring cost-per-case metrics across 200 business segments provides precise costs to determine pricing. These advancements have improved efficiency and aligned operations with the bottler’s business goals, such as portfolio diversification and enhanced value.

Measurable Impact

Since the inception of this partnership, the bottler has experienced substantial growth, scaling from 25 drivers to 135 and covering over 11 million miles annually. Penske’s ability to flex resources during peak periods has driven efficiency and cost savings, supporting the bottler’s growth and diversification goals. By shifting from reactive brokerage systems to proactive, integrated solutions, Penske has reduced risks, improved safety and optimized costs, leading to a measurable impact on the bottler’s operations.

Looking Ahead

With a shared focus on innovation, growth and value, the partnership exemplifies how tailored logistics solutions can drive success in even the most complex industries.

As the bottler continues to diversify its portfolio and expand its reach, Penske remains a steadfast partner, offering strategic guidance and operational excellence. The trust and collaboration between Penske and the bottler are cornerstones of their long-term success, which led to a recently renewed five-year contract.

To learn how Penske can help your business achieve its goals, contact us.

Amid a significant merger, a food and beverage ingredients manufacturer faced the challenge of centralizing transportation management processes across business units to control costs and improve efficiency.

With over 30,000 employees and 340 locations across 60 countries, the manufacturer outgrew their previous logistics partner and sought a new partner capable of managing their diverse supply chain needs while also accommodating growth.

Process discipline was a critical component from the very beginning due to the complexities of the merger and the manufacturer’s business model. This included a thorough assessment by Penske Logistics of all trucking carrier sourcing and management needs and a comprehensive rate audit and negotiation to identify potential savings opportunities.

The manufacturer welcomes challenges posed its by customers, but they don’t take chances on their business operations. Meticulous attention to detail is vital for efficient operations, cost-effectiveness and optimal performance in logistics and supply chain management. Penske stepped up to provide the necessary expertise and support to launch the first business unit on an expedited timeline of 90 days.

Navigating a Lot of Supply Chain Change All at Once

Transitioning to a new freight management and supply chain partner presented significant exposure and risk to continuity of service for their customers, especially when it came to establishing new processes regarding contracting and compliance with their previous carrier base. It was critical that there was no lapse in service to their customers or current operations. With this level of expectation, Penske had to demonstrate its ability to add value and earn trust through communication, planning, discipline and project execution.

To ensure a smooth and timely transition without disruption, the right approach was vital. Penske first conducted a thorough Value Stream Mapping exercise to fully understand the business intricacies and discover opportunities to standardize key processes. This approach unveiled specific improvement areas related to carrier management, centralization of systems across business units and overall process management.

Carrier Management

Through disciplined planning and procurement, Penske optimized freight movement, synchronized lead times and managed all carrier interactions, enhancing the manufacturer’s network reliability and reducing costs.

As a customer, the manufacturer benefited from Penske’s carrier management expertise and vast network of qualified carriers. The client requested to transition their existing carrier base, so Penske qualified them, established contracts and negotiated rates on their behalf.

Making an impact from the start, Penske introduced a $1.1M estimated annual savings within the first 90 days through a combination of rate reductions, routing improvements and better carrier selection.

A strategic partnership with Penske Logistics added value to the customer’s operations. With Penske assuming responsibility for carrier management, the client was able to shift focus to core business activities.

Centralized Systems and Increased Visibility

Historically, the manufacturer grew through acquisitions but did not merge systems. Recognizing the client’s need for a centralized solution across business units, Penske consolidated multiple operating systems into one for enhanced efficiency. Each location had been operating differently and independently of each other, leading to inefficiencies. Despite the challenge of merging organizations with disparate systems, combining these technologies brought everything under a single, unified framework.

Penske facilitated a seamless integration under one umbrella, streamlining access to comprehensive metrics, reporting and data analysis tools. To eliminate excessive work for the client, Penske even extracted all the manufacturer’s existing files and fully integrated them into a single platform.

Process Improvement

What differentiated Penske from the competition was the process approach to delivering solutions. Along with disparate systems, the client also had disparate logistics processes across business lines from acquisitions. Given the need to streamline processes, establishing process discipline along with effective communication was paramount.

Penske Logistics established a dedicated operating team and presented a cohesive vision to lay the foundation for future transformation. This collaborative team dynamic is essential as new business lines are launched.

Clear Path Going Forward

As a result of these efforts, cost savings have already been realized and the leadership and support of the operating team earned the trust of the manufacturer.

Penske Logistics built the infrastructure to enable growth and efficiency and set the stage to deploy these solutions within additional business lines. As this partnership evolves, Penske remains dedicated to providing unparalleled support and experience.

Why Penske?

A ripple effect can turn a business upside down with poor attention to detail and lack of expertise. Penske views itself as an extension of our customers’ organizations, and we have what it takes to keep your business moving forward.