How a Global Healthcare Company Saved 34% on Fuel in One Year | Case Study
June 15, 2017
Managing the supply chain logistics of a large pharmaceutical company is a complicated task, and it’s becoming more challenging. Research shows the volume of the worldwide pharmaceutical market has more than doubled in the last decade and that supply chain visibility is one of the biggest issues in the industry.
That’s why a global healthcare and pharmaceutical company turned to Breakthrough for a more transparent way to manage the fuel needed to transport its products.
After forming a partnership with Breakthrough, the company achieved an annual fuel cost savings of $1.58 million, representing a 34% reduction of fuel costs in the first year of its Fuel Recovery program.
Through our data-driven approach, Breakthrough also brought a new level of network visibility and load level movement details, allowing the organization to make strategic decisions for future network improvements.
The Situation and Impact
In order to generate immediate savings, the company decided to implement Breakthrough Fuel Recovery as soon as possible, rather than waiting for an RFP event with carriers.
The team at Breakthrough developed a custom implementation plan for the client, outlining the details of their Fuel Recovery program. Carriers received clear and defined program parameters before the program launched. Since 98% of the company’s freight mileage was being moved by carriers who were already working with Breakthrough, there was a smooth transition as the program was introduced.
The division of the company introduced during the initial implementation phase used LEAN Logistics (now BluJay Solutions) as a data provider. Breakthrough had a strong, pre-existing relationship with LEAN Logistics, making for a seamless integration with ease of connectivity between the two partners. Breakthrough is compatible with any technology system and works within any existing process. This made the client’s integration of additional business units straightforward and simple.
While the first year of the Breakthrough Fuel Recovery program helped this client reduce their fuel costs by 34%, that was only the beginning of a beneficial partnership.
The healthcare and pharmaceutical company now has greater visibility into the efficiency of the transportation segment in its supply chain. Thanks to data and actionable insights from Breakthrough, they can make continuous improvements that create even more savings while also reducing their consumption and emissions. All of this was done while maintaining carrier relationships and working alongside the company’s IT department and logistics data provider.
Breakthrough creates groundbreaking energy management strategies to remove distortion and improve transparency for shippers. Rather than paying the distorted fuel surcharge dictated by the DOE Index, our solution ensures you pay for diesel fuel based on actuals, not averages.
No matter the industry, Breakthrough can provide real-time fuel price data while advising your organization on effective fuel management strategies. Reach out to Breakthrough today.