How a Manufacturer Saved $3.5 Million in Six Months

A global leader in climate solutions for buildings, homes, and transportation relies on a highly efficient supply chain for success. With a large volume of flatbed freight moving across North America, the manufacturer faced a challenging niche market with limited carrier options. Recognizing the need for improvement, their transportation team decided it was time to optimize fuel cost management and boost operational efficiency.

In September 2022, a meeting with Breakthrough at CSCMP EDGE set the stage for an upgrade in their fuel program. The result was a partnership that delivered a 22% reduction in fuel costs—a $3.5 million savings in just the first six months. This success not only validated the team's strategic vision but also earned them the prestigious Corporate President's Award, cementing their status as innovators within the company.

The challenge: moving beyond outdated fuel surcharges

The manufacturer's transportation team was navigating the complexities of a traditional fuel reimbursement model. Relying on national and regional PADD-based fuel programs meant their fuel reimbursements didn't accurately reflect what carriers were paying at the pump. This discrepancy represented a significant, untapped opportunity for transparency and cost savings.

The team was also concerned about the potential ripple effects of changing their fuel program. Would carriers respond by increasing their linehaul rates to compensate? Furthermore, their transportation data was fragmented across multiple systems —including raw file formats — making it challenging to get a clear, holistic view of their network. They needed a solution that would not only deliver savings but also ensure carrier buy-in, centralize their data, and provide a seamless transition for all stakeholders.

The solution: a phased, collaborative implementation

Breakthrough’s Fuel Recovery program was identified as the ideal solution to address the manufacturer’s challenges. The program replaced average fuel surcharges with market-based reimbursements calculated on the specific details of each individual freight movement. The implementation, which began in June 2024, was meticulously planned and executed in two phases, guided by a five-stage process designed to ensure a smooth and successful rollout.

Stage 1: scoping

The foundation of the project was built on a deep understanding of the manufacturer's unique needs. Prior to the official kickoff, the transportation team completed a detailed scoping questionnaire. This information enabled the teams to collaboratively build a strategic roadmap, deciding on a two-phase implementation to manage the transition effectively. Weekly calls were established to maintain alignment and ensure every detail was communicated.

Stage 2: technical implementation

With a clear scope defined, the focus shifted to data and systems integration. Breakthrough’s technical team worked closely with the manufacturer to establish a robust data flow. This involved creating a custom XML endpoint for the manufacturer to send shipment data via API. Breakthrough’s flexible platform was adapted to accommodate their specific data formats, ensuring all necessary load-level details were captured accurately. Test environments were set up on both sides, allowing the teams to work through all possible scenarios and refine the workflow for both outbound and inbound volume before going live.

Stage 3: carrier communication

A critical element of the project's success was securing carrier support. Recognizing that a change in payment processes could be met with resistance, Breakthrough took the lead on carrier education and onboarding. For the first phase, which coincided with the manufacturer’s RFP, the Breakthrough team met with each carrier one-on-one. They explained the fairness and accuracy of the new fuel program and made sure each carrier was set up with an account to view loads and fuel reports. The transition was made significantly easier by the fact that 76% of the manufacturer’s carriers were already using the program with other shippers, which brought immediate familiarity and trust to the process.

Stage 4: hypercare

To ensure a seamless launch, the project entered a two-week hypercare phase immediately following go live. This period involved daily monitoring and meetings between the teams. Any potential issues were identified and resolved, preventing disruptions to the manufacturer's operations or its carriers. Self-service dashboards provided weekly reporting, offering complete transparency into the program's performance from day one.

Stage 5: post go-live

With the program successfully launched, the results began to materialize quickly. The manufacturer was now reimbursing its carriers with a market-based fuel price, aligning their costs with reality. The team’s initial concern about linehaul rates proved wrong—there were no increases from their carrier partners. The overwhelming success and smooth execution of the first phase gave the manufacturer the confidence to accelerate its plans. Just six months later, they moved the rest of their volume onto the Fuel Recovery program.

"Overall, the project has not only streamlined fuel cost management but also enhanced the accuracy of financial transactions related to fuel expenses. The successful implementation across North America signifies a major step forward in our efforts to optimize transportation costs and improve overall supply chain efficiency.”

– Supervisor, Freight Pay & Analytics

The results: millions in savings and a foundation for future growth

The implementation of Fuel Recovery delivered exceptional and measurable results that resonated across the organization.

• Massive cost savings: The manufacturer achieved an immediate 22% reduction in fuel costs, saving $3.5 million in the first six months. The second phase of the implementation delivered 23% cost savings.

• Greater supply chain efficiency: For the first time, the manufacturer's transportation data was unified in a single location. This centralized visibility empowered the team to think more strategically, quickly identifying drayage as the next opportunity for savings just two months later.

• Prestigious internal recognition: The transportation team's initiative and impressive results earned them the Corporate President's Award for Q2 2025, an honor recognizing exceptional service and embodiment of the company's core leadership principles.

Paving the way for future optimization

The manufacturer’s partnership with Breakthrough proved invaluable. Despite initial hesitations, they unlocked significant, continuous cost-saving opportunities in an uncertain market. Building on this foundation of trust and data, the manufacturer has explored additional solutions offered by Breakthrough, including CleanMile for emissions reduction, Marine Fuel Recovery, and cross-border Mexico Fuel Recovery.