How Altium Packaging Saved 15.7% in Their First Year Using Fuel Recovery

Altium Packaging, a leading North American packaging solutions company, embarked on a mission to bring greater efficiency and transparency to its transportation network. Facing challenges with the fuel reimbursement process and a large carrier network, Altium Packaging needed a partner to help them navigate the complexities of the energy and freight market. They found that partner in Breakthrough.

By leveraging Breakthrough’s Fuel Recovery and Transportation RFP services, Altium Packaging gained the data, tools, and expert guidance needed to support their strategy. The results were significant: 15.7% fuel cost savings in the first year, a 6% cost reduction in their most recent RFP, and a carrier network consolidation of over 50%. These changes not only delivered immediate financial benefits but also positioned Altium Packaging for long-term, sustainable growth.

A need for data-driven fuel management

Altium Packaging’s journey began with a fundamental challenge: a lack of clear data around fuel spend and how they were reimbursing carriers for their fuel consumption. As the Director of Logistics, Charles Osiegbu, was navigating the early stages of the company's sustainability journey, he recognized the need for a more accurate and transparent approach. The existing method of managing fuel costs was cumbersome and didn't provide the insights needed to make strategic decisions.

The timing was perfect when an email from Breakthrough landed in Osiegbu’s inbox. “I went through it, and it made sense,” he recalled. “I really liked the tools that they provided and the technology that they use, and so that was how I chose Breakthrough as a partner.” Altium Packaging needed a solution that could provide accurate, market-based fuel reimbursements and a clear view of their network performance.

Implementing a fair and accurate fuel program

Altium Packaging chose to implement Breakthrough’s Fuel Recovery program to bring fairness and accuracy to its fuel reimbursements. One of the primary goals was to move quickly without disrupting operations. Altium Packaging went live in February, mid-cycle, a decision that required clear and proactive communication.

"One of the first things that we actually did was communicate with our carrier vendors," Osiegbu explained. "‘Hey, this is what we're doing. This is how it's going to impact you.’" This direct approach was key to a smooth transition. By setting clear expectations, Altium Packaging ensured its carrier partners understood the new process, which aligned fuel costs with real-time market dynamics. The implementation was successful without causing an increase in linehaul rates, a common concern for shippers making this change.

With an accurate fuel reimbursement program in place for its U.S. operations, Altium Packaging saw the value and expanded the solution to its Canadian volume a year later. "It was always our goal to bring on our Canadian partners," Osiegbu said. The lessons learned from the initial U.S. implementation made the Canadian rollout even smoother, helping Altium Packaging manage its entire North American network as a single, cohesive unit.

Transforming the RFP process

With a solid foundation in fuel management, Altium Packaging turned its attention to freight procurement. The company's carrier network had grown to over 90 carriers, making it difficult to build the deep, strategic partnerships Osiegbu envisioned. The goal for the upcoming RFP was twofold: achieve savings and streamline the network.

Breakthrough’s expertise was instrumental in reshaping Altium Packaging’s approach to its RFP. “One of the things I really appreciated working with the Breakthrough team was the fact that they didn't come to me for all the answers,” shared Osiegbu. “They actually came to me with their expertise and said, ‘Hey, I've seen other shippers do this... Is this something you'd be willing to consider?” This collaborative partnership provided the guidance Altium Packaging needed to build a more effective procurement strategy.

Using Breakthrough’s advanced analytics and scenario modeling, Altium Packaging could visualize the impact of different award strategies. "It gave us the talking points that we actually needed to communicate with our carriers," Osiegbu noted. This data-driven approach allowed Altium Packaging to balance cost with operational reality, ensuring that the solutions on paper would work in their day-to-day operations. The result was a successful two-round RFP that reduced their carrier base from over 90 to just 43, fostering stronger, more strategic relationships with their partners and achieving 6% in savings.

Building a sustainable and efficient future

Altium Packaging 's partnership with Breakthrough has delivered more than just cost savings; it has provided a strategic advantage. The industry benchmarks and data analytics have given Altium Packaging a new level of insight into its network performance. “Using the linehaul rate benchmark tooling has really helped us kind of gauge where we are,” Osiegbu said. This has been tremendous in helping the team baseline their performance against the market.

The data gathered is also playing a crucial role in Altium Packaging’s sustainability initiatives. After publishing its first ESG report focused on Scope 1 and 2 emissions, the company is preparing for a heavy focus on Scope 3. “We have all this data that we've gathered, so we're actually able to provide some information to our sustainability team on what we're doing,” Osiegbu explained. This proactive approach has put Altium Packaging ahead of the game in its sustainability reporting.

For other leaders in a similar position, Osiegbu offers simple advice. “I will say go for it because it only makes sense.” The combination of data, technology, and expert guidance has empowered Altium Packaging to create a more efficient, cost-effective, and sustainable transportation network. The journey continues, with Altium Packaging and Breakthrough working together to uncover new opportunities for optimization.