Penske Logistics

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.

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Omnichannel Fulfillment for Food Logistics

E-commerce, growth in the omnichannel and a proliferation of products mean that today's consumers are more demanding than ever. Not only are they looking for a wider variety of product choices, but they also expect those products to be in stock, whether they're shopping online or at their local grocery store.

What's more, technology means consumers have an increased number of purchasing options and can take advantage of an always-on shopping experience for items ranging from socks to macaroni and cheese.

All of this is placing added pressure on shippers and their supply chain partners. Logistics providers are working to ensure success by utilizing route optimization, incentivized scheduling, and real-time electronic tracking and communication. As a result, the $1.45 trillion logistics industry is experiencing growth.

Omnichannel Fulfillment

Within the omnichannel sector, Penske helps customers plan, design and run fulfillment centers.

We use sophisticated supply chain modeling tools and our engineering know-how to design complex transportation networks. We're able to optimize routing to reduce cycle times and improve customer service so that, ultimately, we can drive down costs for our customers.

Managing the Warehouse

Today's supply chain partners are moving products from the manufacturer to the end user faster than ever. What happens within the walls of a warehouse is a crucial component of speeding deliveries, managing inventories and controlling costs.

Because consumers have more choices than ever, logistics and warehouse providers need to deal with an increasing number of SKUs while also being able to pick and pack them quickly and track where they are going.

Dave Bushee, senior vice president of logistics technology for Penske Logistics, said the key to success can be communicating with customers to understand when and how SKUs are changing and how to best manage them. "We work with our customers to manage SKUs, and it is one of the most difficult tasks that many manufacturers and retailers have," he said.

Bushee said Penske works diligently with customers to identify new SKUs, which ideally will be done well ahead of when the new merchandise arrives in the warehouse. "We try to work with our customer to identify SKUs, capture the relevant information and make recommendations. Then we do the necessary work to receive it, slot it, pick it and ship it in the appropriate manner."

Slotting Product Properly

Once Penske knows new SKUs are coming, the warehouse team works to determine the best way to store the product. "You want to use the least amount of labor to move that product from receipt to the pick," Bushee said. "You're constantly trying to be efficient and maximize the number of picks that an associate can do within a facility."

Penske engineers assess how much the warehouse will hold and how the product will be picked — either by the case or individually. The process can sometimes be done in as little as a day.

Examining the Velocity

For all products within the warehouse, particularly perishable grocery items, Bushee said velocity matters, as do packaging dimensions. Once the product is in the warehouse, Penske examines data on how often the SKUs are moving. "You're constantly looking at the velocity of the SKUs and then re-engineering your warehouse to match that," Bushee said.

Tracking Each SKU

Warehouse management systems provide the opportunity to track a product from receipt to pick, which is becoming increasingly important, particularly to grocers, Bushee said. Through its warehouse management systems, Penske can track products down to the SKU, which can be useful in the event of a recall.

"It is a configuration within the WMS, and you can determine how you want to track it," Bushee said. "The parameters are dictated by our customer."

Adjusting on the Fly

The proliferation of SKUs and the rapid pace at which they can change also adds to the need for warehouses to be nimble. Bushee said it is common to adjust the slotting location within the warehouse based on the season, upcoming promotions or ahead of supply chain disruptions. "We work with our customers to ensure we can handle the volume and to make sure product gets where it needs to go," Bushee said.

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How Your Supply Chain Can Improve Food Safety

Food safety is a top priority for food and beverage manufacturers and their logistics providers. Federal regulations require those involved in the transportation and distribution industries to meet specific food-safety standards.

Penske Logistics not only meets those regulations but also goes above and beyond to deliver proven results that keep our customers safe.

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Case Study: Streamline Transportation Management

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.

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What is White Glove Logistics?

White glove logistics refers to a delivery service that provides additional assistance and attention to detail upon initial delivery. Standard shipping typically involves getting something from point A to point B. However, white glove services go beyond that and include tasks such as unpacking, restocking or setting up products. In so doing, the delivery driver often interacts face-to-face with customers while doing their job. White glove logistics services are frequently seen within the food and beverage industry to ensure the freshness and rapid replenishment of food and drink items.

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Eight Things You Need to Know About the Food Safety Modernization Act

The Food Safety Modernization Act (FSMA) is transforming the nation’s food safety system by implementing best practices and requirements designed to prevent foodborne illnesses in consumers. Many of the FSMA provisions relate directly to the supply chain and keeping food and beverage products safe, fresh and enjoyable.

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New FSMA Requirements to Require More Record Keeping in 2026

The Food and Drug Administration (FDA) has issued new requirements for additional traceability records for certain foods, ranging from nut butters to cut veggies to shrimp, under the Food Safety Modernization Act (FSMA). The requirements, which take effect on Jan. 20, 2026, create new traceability record keeping requirements beyond those in existing regulations for certain foods. All entities in the supply chain will be subject to the Food Traceability Rule.

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Maximize Food Warehousing Operations

Maximizing space within a warehouse and positioning items to improve efficiency can add up to significant financial and time savings. The layout and design of a warehouse and a distribution network should be an ongoing process. Shippers can improve their food warehousing and distribution with these six strategies:

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Penske’s Cold Carrier Certification Emphasizes Its Commitment to Food Safety

Penske Logistics has earned Cold Carrier Certification, adding to its strategic approach to safety. The certification, which is the first of its kind, recognizes cold trucking carrier companies that comply with the Refrigerated Transportation Best Practices Guide from the Global Cold Chain Alliance, a trade association representing all major industries engaged in temperature-controlled logistics.

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Managing Warehouse Labor to Reduce Expenses

As rising warehouse labor costs eat into their logistics budgets, many manufacturers seek ways to improve warehouse productivity and reduce facility headcount. But meeting these goals is not easy, given the sheer number of technological tools and strategies available to managers.

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Hot Demand for Cold Storage Highlights Outsourcing Option

E-commerce is more prevalent today than ever. Whether it’s a popular piece of clothing or the newest gadget, online shoppers want their purchases to arrive at their doorsteps sooner and quicker. And the same can be said about their groceries.

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Creating a "Smart" Food Supply Chain

Supply chain operations are always complex with each individual link in the chain having to operate precisely as planned to avoid disruptions. The food supply chain can bring even more intricacies that must be managed for overall success. Some leading chain grocers have begun implementing penalties for delayed deliveries and missed shipments. So, on-time delivery and visibility of shipments is increasingly important.

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filter-industry-food-and-beverage

Initial Challenges

Transportation Management

Managing Seasonal Fluctuations

Customized Technological Integration

Dock Scheduler

KPI Dashboard

Financial Reporting

Geographic Cost Tracking

Measurable Impact

Looking Ahead

FSMA Warehouse Technology

Warehouse Technology Overview

FSMA Technology Infographic

Omnichannel Fulfillment

Managing the Warehouse

Slotting Product Properly

Examining the Velocity

Tracking Each SKU

Adjusting on the Fly

Here are Five Areas of Emphasis for Penske:

1. Equipment

2. Sanitation

3. Third-Party Audits

4. Training

5. Recordkeeping

Navigating a Lot of Supply Chain Change All at Once

Carrier Management

Centralized Systems and Increased Visibility

Process Improvement

Clear Path Going Forward

Why Penske?

Best Practices Apply

Shippers Hold the Most Responsibility

Requires Strict Procedures and Record-Keeping

The Ability to Track-and-Trace Is Essential

Temperatures Are Critical

Supply Chain Partners Must Share Information

Training Is Required

There Are New Requirements on the Horizon

Key Data Elements and Critical Tracking Events

Traceability Plan

The Importance of Equipment, Technology and Training

Foods on the Traceability List

How do you handle supply chain fluctuations or disruptions?

How do you ensure the consistency of each load?

How do you comply with food safety regulatory requirements?

How do you provide rapid replenishment?

How do you track and trace products in the event of a recall?

How do you clean food handling equipment?

Can you separate food products?

1. Improve Slotting Patterns

2. Examine Labor Standards

3. Increase Communication

4. Upgrade Technology

5. Create a Contingency Plan

6. Replenish at the Shelf Level

Technology Enhancements Improve Warehouse Operations

The Value of Penske Logistics

Personnel Premium

Making the Leap

Increased Use of 3PLs

An Ounce of Prevention

Recall and Replace

No Time to Relax

What’s Behind the High Demand?

A Growing Space

Third-Party Option

Critical Ingredient: Communications

Transportation Challenges

Innovations Ahead

1. Network Management

2. Shrink Reduction

3. Employee Training

4. Combined Distribution Center and Transportation Management

5. Efficient Slotting Patterns

6. Standard Operating Procedures

7. Cross-Docking Operations

8. Product Thawing

Taking a Multipronged Approach