After one year managing transportation energy spend using Breakthorugh®Fuel’s Fuel Recovery program, a Fortune 100 consumer goods corporation wanted to take it to the next level. After completing a thorough analysis of their current fuel management strategy Breakthrough® proposed adding a new segment of the company’s business to their Fuel Recovery program: bulk freight fuel.
The company’s bulk freight fuel segment encompassed over 21 million miles of their transportation network and would result in over $2 million dollars in annual savings. Because of the company’s commitment to create transparency and expand best practices for a consistent approach to managing energy, they were eager to add bulk freight fuel to their existing Fuel Recovery program.
Unique Considerations, Same Savings
Bulk freight fuel management is unique, as freight characteristics require tank washes, fuel used for bulk loading and unloading, and specialized equipment in addition to the nuanced transportation network considerations of traditional over the road trucks. These extra factors, however, don’t change the core of how Fuel Recovery works—providing accurate, shipment-level fuel pricing in real time.
Jenny Vander Zanden, Vice President of Fuel Recovery says, “Even though there are new considerations to account for in bulk freight fuel, it is so simple to implement into an existing Fuel Recovery strategy. Once you make the decision to actively manage this portion of your business, a few configurations on the Breakthrough®Fuel side result in almost immediate ROI for clients.”
Evolving Fuel Strategies Are the Best Fuel Strategies
The consumer goods company’s annual $2 million dollars in savings resulted from simply adding their bulk freight segment to their already existing fuel management strategy. Actively developing a detailed and ongoing fuel management strategy results in big-time savings in the long haul.
“As a Fuel Recovery client you can absolutely sit back on your program and know that on every movement, every day your fuel reimbursement aligns to the fuel market. But savvy shippers also know that Breakthrough® is always looking a step ahead. Together we can continually optimize and grow your fuel management strategy – resulting in an ever growing and evolving portfolio of savings and value,” says Vander Zanden.
Align True Consumption with Cost
Breakthrough®Fuel provides consistent strategies to evaluate, plan, and execute new opportunities for their Fuel Recovery clients. The key to long term success is continuous improvement and actively looking for the next viable opportunity to increase transparency, fairness, and innovation in our clients’ supply chains.
Shippers have the economic responsibility to pay for the fuel used to move their products to market, and Fuel Recovery facilitates this exchange fairly and equitably. Based on the time, tax, price, and geography specific to each shipper’s individual freight movements, shippers’ fuel expenses are reflective of the expenses their carriers incur when hauling their freight.
Managing and reimbursing for fuel with a market-based approach, not a retail index, will lower your overall spend immediately. Once true consumption and costs are aligned with freight movements, further improvements can be made to achieve continued savings.