Transportation is an essential part of any business, and optimizing transportation operations can be a game-changer for companies. From inbound and outbound operations to negotiating contracts with carriers, every aspect of the transportation network requires careful planning and execution. Save A Lot has been able to achieve just that by partnering with Breakthrough, a transportation management solutions provider. Hear how Joe Rippey, director of transportation at Save A Lot, uses Breakthrough's Fuel Recovery solution to improve their transportation operations and achieve significant savings.
"I think [Fuel Recovery] gives you a better leverage point when you are negotiating contracts with your carriers. You can really dial in on those market-to-market details."
Director of Transportation
Save A Lot
Uncovering cost savings through improved visibility
One of the most significant advantages of partnering with Breakthrough is the transparency it provides. Rippey reduces distortion and time in conversations with carriers by using market-based fuel reimbursements that consider the time, tax, price, and geography of the shipment, “We don’t have to spend a ton of time with our carriers talking about it because it’s a very straightforward mathematical equation, and it’s really easy to understand.” This calculation offers a more fair and accurate method compared to Save A Lot's previous PADD-based rate.
Rippey also implemented Breakthrough’s zero-base strategy, a move that brought an additional level of transparency to the negotiation process. This strategy separates fuel costs from freight costs, providing clearer visibility into pricing structures, “You’re able to pull out something that is buried into a subset rate. You gain greater visibility to true market-based pricing when you can look at metrics on a day-to-day and lane-to-lane basis.” This granularity helps Rippey to better understand and control costs.
Beyond pricing, Save A Lot receives crucial insights into fuel markets. These insights support informed conversations with vendors, giving Rippey a competitive edge. For companies like Save A Lot, these insights have proven to be essential tools in maintaining competitiveness in a dynamic market.
Leveraging data for accurate fuel efficiency metrics
Save A Lot's fuel efficiency is supported through Breakthrough's data-driven insights. Data availability and visibility provide Rippey with the necessary tools to identify and eliminate unnecessary miles. With visibility to an ecosystem of over $25 billion in real-time, transacted annual transportation spend, Save A Lot can view solid evidence on fleet and tractor fuel efficiency by model year and industry.
Save A Lot has been able to make critical MPG improvements across its entire network, “In partnering with the Breakthrough team, they were able to share with us what other shippers have done and how they’ve gone about their approach with negotiations to increase the MPG.”
Broadening the scope of partnership with Breakthrough
Thus far, Save A Lot used Breakthrough to support its dedicated network, but there are plans to expand this relationship to gain greater transparency throughout its transportation network. By leveraging data-driven insights and expertise, Save A Lot has advanced negotiations, established greater partnerships, and realized cost savings with carriers. By expanding the partnership, Save A Lot will gain insights beyond fuel.
Save A Lot propels transportation operations forward
In today's highly competitive, fast-paced, and data-driven world, shippers need to stay agile, and this means adapting to meet the changing market needs. Rippey partnered with Breakthrough to achieve precisely that. The partnership has brought about greater visibility and cost savings, MPG improvements, and the opportunity to expand transparency across their entire transportation network. Overall, Rippey has been able to tackle some of the most pressing challenges facing shippers in the transportation industry today with support from Breakthrough.