How Sonoco Cut Fuel and Freight Costs by Over 22%

Sonoco, a global leader in sustainable and innovative packaging solutions, sought to transform its transportation network by focusing on standardization and transparency across suppliers. Committed to delivering reliable, on-time service and clear communication, Sonoco faced the challenge of streamlining operations across its three unique divisions while maintaining the flexibility needed to manage 6,000 trade lanes.

Recognizing the importance of transparency, Sonoco turned to Breakthrough. By leveraging Breakthrough’s Fuel Recovery and Transportation RFP Services, Sonoco gained the tools and insights needed to elevate their transportation network. The results? A 14.26% fuel cost savings since 2019, improved MPG from 6.0 to 7.2, and a more efficient freight network with 6.3% savings in their recent RFP.

Fair and Accurate Fuel Reimbursements

The journey started with one simple goal: to bring fairness and accuracy to their fuel reimbursements. Through Breakthrough’s Fuel Recovery program, Sonoco gained real-time visibility into their lane-level shipment data and market-based fuel prices for their truckload and intermodal shipments across the U.S. and Canada. This approach allowed Sonoco to align transportation costs with fuel market dynamics, all without experiencing an increase in linehaul rates.

Armed with a clean, organized dataset and a better understanding of their network, Sonoco began uncovering valuable insights. For example, they discovered their set MPG with carriers was significantly lower than what carriers were actually achieving. By working closely with Breakthrough, they have been able to adjust and optimize this figure, gradually increasing it from 6.0 to 7.2 MPG. This seemingly small adjustment had a profound impact, unlocking cost savings from reduced fuel consumption and improving accuracy across their network.

Zero-base strategy

Sonoco also decided to pursue a zero-base strategy. By separating fuel surcharge base rates from linehaul rates, they gained visibility into both cost components. The zero-base strategy enabled fuel to be a pass-through cost and improved communication with carriers.

Larry Middleton, logistics excellence & strategic manager at Sonoco, shared, "Although it required some upfront effort, especially in the first year while implementing Fuel Recovery, the standardization has proven to be well worth it. The Breakthrough team guided us through the process with efficiency and expertise and supported conversations with data. If carriers are interested in learning what they will get paid for fuel, they can use the fuel rate lookup tool to quickly check fuel costs for any lane."

The zero-base strategy set the foundation for Sonoco to receive the most accurate cost insights during their RFP.

RFP process transformation

Facing the challenges of a lean team, Sonoco recognized the value Fuel Recovery brought to their transportation network and decided to work with the Breakthrough team to support their RFP. "The Breakthrough team had a clear understanding of our network and the market, making the process efficient and effective," shared Larry. By leveraging advanced technology, comprehensive data, and industry insights, Breakthrough helped Sonoco achieve their goals of growing volume with top-performing carriers, strengthening strategic and regional carrier relationships, and removing low-performing carriers.

Sonoco also made several process improvements that helped them prepare for and execute a more efficient and effective RFP. The Breakthrough team helped Sonoco efficiently analyze over 6,000 lanes and origins, carefully selecting the carriers to invite for optimal results. Additionally, Breakthrough provided a comprehensive network and market analysis, which quickly uncovered a $25,000 opportunity on just two lanes—all without sacrificing service quality.

The enhanced RFP process didn’t just find cost savings; it added strategic value. It empowered Sonoco to have meaningful discussions with their operators, demonstrating that decisions weren’t simply based on cost. The process shared several metrics, including the percentage of lanes retained by incumbent carriers and carrier and broker utilization to show a balanced approach.

This relationship transformed Sonoco's RFP process from a transactional approach to one focused on building value-driven relationships. Breakthrough’s support not only optimized their freight strategy but also provided clear, concise reporting, empowering Sonoco to share progress confidently with stakeholders.

Sonoco Transformed Its Transportation Network with Breakthrough

Sonoco’s relationship with Breakthrough marked a turning point in transforming its transportation network. With Breakthrough's Fuel Recovery and Transportation RFP Services, Sonoco gained clarity, reduced costs, and boosted operational efficiency across its transportation network.

At the heart of this transformation was the support of Breakthrough's dedicated account manager, offering both an insider’s understanding of Sonoco’s operations and an external, fresh perspective. “The support of a dedicated account manager for our fuel and freight operations has been invaluable. Their in-depth knowledge of our network, combined with an external perspective, allows them to identify opportunities we may have otherwise overlooked," said Larry. This centralized support system ensured seamless communication and coordination between teams.

Looking forward, Sonoco is set to build on this success by continuing its transportation optimization journey. Sonoco remains at the forefront of creating a sustainable and efficient supply chain with Breakthrough.