Major Global CPG Leader Sets New Standard for Transport Energy Management in Europe

A major global leader in consumer packaged goods (CPG) aimed to enhance their energy management strategy, emphasizing transparency and accountability. After implementing Fuel Recovery, a market-based fuel reimbursement program, in North America, they experienced the value of Breakthrough's transport fuel calculations. With fuel being the second largest transportation expenditure, and shippers owning the economic responsibility, they quickly expanded the Fuel Recovery calculation to their transportation network in Europe. This enabled the global CPG leader to gain clear insights into fuel consumption, fuel efficiency benchmarks, and carbon emissions. This transition enabled accurate tracking, resulting in an average fuel savings of €1.6 million and a decrease of 3.2 million CO2e annually.

Enhancing energy management and efficiency in global transportation

The global CPG leader sought a standardized, consumption-based fuel management program to enhance its understanding and management of fuel costs, thereby increasing its operational efficiency and strengthening its competitive market position. They aimed to establish a fair system that compensated transport contractors for the actual cost of fuel and led to additional improvement opportunities that would reduce their consumption and transportation lifecycle emissions. As part of their ongoing European transportation management strategy, the company consolidated fuel management across truckload, intermodal, and short sea movements into a single program. They mandated this policy for transport contractors, with the clear stance that non-compliance would result in terminating the partnership. Since implementing the Europe Transport Energy Management program, both large and small transport contractors continue to transport the company's goods.

During the rollout, the global CPG leader also updated their program to separate fuel from linehaul—where linehaul refers to the load-moving price excluding fuel surcharge and accessories—also known as a "zero base" approach. This "zero base" approach means fuel costs are removed from the linehaul rate, with shippers reimbursing transport contractors for the full cost of fuel.

Fair fuel pricing with agility

The global CPG leader knew transport contractors were paying for fuel at a more competitive price than retail due to their high consumption volumes and buying strategies. In response, they implemented an established discount based on the EU27 average to ensure fairness. Initially, these transport charges were calculated monthly. However, with the volatile price fluctuations caused by the Russia-Ukraine conflict, the company adeptly shifted to a weekly calculation model to maintain accuracy and fairness.

Fuel efficiency for equitable energy management

To ensure a truly equitable and precise energy management system, the global CPG leader knew it was crucial to incorporate considerations of fuel efficiency alongside fair pricing strategies. When the company first engaged with Breakthrough in 2014, they were at a 3.0 km/L fuel efficiency. Since then, they have moved to 3.45 km/L for full TL and 3.15 km/L for temp-controlled freight. Each year, Breakthrough evaluates their fuel efficiency benchmarks against the figures reported by OEMs for urban and long-haul deliveries, considering equipment types and other relevant factors. This enables them to assess the fuel efficiency of a well-managed transport contractor and offers a comparison between their current and future consumption, savings, and emissions.

The power of data-driven insights in transportation energy management

The global CPG leader's partnership with Breakthrough has been a testament to the power of strategic collaborations in driving sustainable growth. By integrating Breakthrough's data-driven and innovative solutions into their operational framework, the company has established a precedent for being economically responsible for the energy consumed to move their products to market. The company has achieved impressive quantifiable results:

• A notable 1.6 million Euro reduction in fuel expenditure year-over-year.

• A substantial decrease in CO2e emissions, amounting to 3.2 million metric tons annually.

• 3% year-over-year savings, resulting from fuel efficiency improvements.

• Enhanced collaboration with over 500 transportation partners, demonstrating a strong and extensive network.

As they continue to leverage insights from their partnership with Breakthrough, they remain poised to further innovate and adapt in the ever-evolving market, reinforcing their position as a leader in sustainable and strategic transportation management.

Global CPG leader continues to transform energy management

The global CPG leader's partnership with Breakthrough exemplifies the importance of responsible transport energy management. By leveraging data-driven insights and adopting fair and accurate calculations, they have significantly reduced costs, consumption, and emissions. As they refine their practices, their strategic alliance with Breakthrough provides a significant competitive edge.