How Materne North America Achieves an Additional 12% Savings with Capac-ID

Materne North America, a Bel Group company, is a fast-growing and innovative company on a mission to make happy, healthy snacking a habit. In fact, you probably know them as GoGo squeeZ. Nicole Buttcher, senior manager of logistics & business excellence at Materne North America, leads the logistics team responsible for managing the flow of inbound and outbound finished goods. Buttcher is a strong advocate for challenging the status quo, aligning perfectly with Breakthrough's core principles and unbiased data analysis.

Materne North America enhanced their transportation strategy by implementing Breakthrough's market-based fuel reimbursement calculation and boosting their fuel efficiency from 6.8 to 7.4. They also implemented Capac-ID, which gave them access to real-time, transacted linehaul rate benchmarking and lane-specific carrier search. From Capac-ID's insights, they achieved an additional 12% savings compared to their transportation budget in their RFP.

Boosting Efficiency with Fuel Recovery and Capac-ID

In 2019, Materne embarked on a mission to find a fair and accurate method for reimbursing carriers for fuel consumption. This led to the implementation of Fuel Recovery in 2020, which optimized Materne North America's fuel expenditure and laid the groundwork for further efficiency improvements. As a global entity with multiple brands, they faced challenges in managing diverse data sets, TMSs, and ERP systems. Fuel Recovery brought their dataset together for cohesive data management and enhanced network visibility. This streamlined data not only influenced decision-making but also allowed Buttcher and her team to adapt strategies to align with its organization's objectives. Following the acquisition by Bel Group company in 2022, this approach proved to be a critical factor in the company's growth and success.

By leveraging innovative technology and data insights, they continued to enhance their logistics operations, setting the stage for long-term advancement and savings. In October 2021, they introduced Capac-ID, a tool that monitors transportation network performance and pinpoints areas for cost reduction and efficiency improvements. With Capac-ID, Buttcher and her team gained insights into how their linehaul rates measured against industry benchmarks and identified the best-fit carriers for their freight needs. This allowed them to make data-driven decisions and negotiate more competitive rates with carriers, resulting in significant cost savings.

Crafting a Winning RFP: Leveraging Data, Technology, and Market Insights

When Materne North America attended The Mercury Group 2023 conference, they didn't just participate; they absorbed a wealth of insights that would shape their future strategy. At the time, Materne North America was navigating the challenge of quarterly RFPs. However, armed with newfound market expertise and powerful data from Capac-ID, they made a bold move to transition to an annual RFP.

The insights from The Mercury Group paired with their monthly connects with the Breakthrough team proved to be valuable in the transition. Nicole expressed, "It's a dynamic and engaging partnership, and that fluidity is what I love about it." The partnership thrives on open dialogue, allowing Materne to ask questions and adjust strategies as needed. This flexible approach not only fostered deeper discussions, but also ensured that the partnership effectively supported their strategic objectives in a constantly evolving market landscape.

From these conversations, Materne North America was able to engage in dynamic dialogues with their suppliers, successfully negotiating to maintain rates through the second half of the year. But they didn't stop there. By leveraging these insights, they crafted a strategic RFP that aligned with market conditions and decoupled freight from fuel spend. This shift allowed them to establish a zero-base rate and elevate their fuel efficiency expectations from 6.8 to 7.4.

By synchronizing their calculations with what carriers achieved in fuel efficiency, they could accurately measure emissions and advance their sustainability goals. The outcome of this strategic overhaul was remarkable, realizing an additional 12% cost savings against their budget in the RFP. Their journey from insight to execution showcased the power of market expertise, data, and technology, leading to significant success.

Innovative Transportation Strategies Propel Materne North America Forward

By embracing Breakthrough's granular analytics and meaningful relationships, Materne North America successfully aligned its transportation strategy with market realities, leading to notable cost savings and enhanced operational performance. The shift to an annual RFP and the adoption of Fuel Recovery and Capac-ID have not only optimized their logistics network, but have also unlocked the door to future opportunities.

As they look to the future, their partnership with Breakthrough continues to drive substantial advancements that contribute to the organization's goals. Buttcher shared, “I will say of all of the partnerships that we've endeavored on, Breakthrough definitely ranks very high on the list of those meaningful connections. We're not just having conversations for the sake of having conversations and checking in and seeing how business is doing. There isn't a monthly connect that we don't walk away with a new idea or insight.”