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Cheers to 1,450,000 Empty Kilometers Eliminated in 2018

Our relationship is symbiotic. Coyote Logistics adds value to our business by eliminating empty kilometers and adding additional revenue, and we add value to Coyote Logistics and their customers’ businesses by moving their freight. It’s a really clean and simple process.”

– Manager of Transportation Systems for a major international brewing company

Quick Shipper Facts

  • Established major brewing company
  • Operates a dozen facilities
  • A strong company commitment to sustainability

Challenge

A large brewing company utilizes 5 unique fleet partners across their North American freight network and brewery operation. They require the control and consistency of dedicated fleet solutions to manage their outbound freight, but drivers often have to return empty, adding inefficiency to a cost-intensive capacity solution.

Results

Working with Coyote Logistics, they were able to source consistent backhaul opportunities that filled 900,000 empty miles (1.450.000 kilometers) in 2018 alone to offset their fleet costs with additional revenue.

Optimizing Their Backhaul Network

Each dedicated fleet has its own unique service territory and regional network. They all consistently service outbound beer routes and deliveries to distributors along the same lanes. Plus, each one has specific operational requirements in order to take advantage of opportunities on the backhaul side. With Coyote Logistics’ help, the brewer tapped into thousands of daily loads and expertise loading fleets to do exactly that. The key was identifying backhaul business that makes sense both operationally and financially for this customer. Our efforts have improved the customer’s operating efficiency and fleet utilization, both of which impact their bottom-line profitability.

Coyote Logistics helps this brewing powerhouse fill empty kilometers in two key ways:

1.Identifying Individual Loads

Coyote Logistics has assigned a specific Fleet Solutions expert to build and own the relationship with each of the dedicated fleets that service this customer. Each individual fleet seller works independently to seek out and identify matches within Coyote Logistics’ freight network that would align with their respective fleet’s empty kilometers. The opportune time to capture these opportunities is 24-72 hours in advance when the outbound route gets scheduled to leave the brewery. Each fleet sales rep is responsible for communicating with the customer and the corresponding fleet in advance to: confirm capacity, negotiate pricing and organize scheduling for the backhaul in order to successfully tender out and move that load.

2. Thinking Long Term

In addition to one-off opportunities, we also reverse engineer the customer’s fleet network to identify high volume inbound opportunities to round trip the fleet. We present these larger scale and longer term opportunities to the Manager of Transportation Systems, who champions the backhaul program on the customer side. He vets the opportunity, confirms capacity and communicates with the brewery and the fleets to service the freight and scale the program. If they can manage the additional third-party business, their fleet begins hauling loads for us to complete the round trip route. To set us up for long term success, we typically plan a few test runs to ensure the lane operates as planned and then communicate feedback. Our goal is to create a mutually beneficial scenario where everyone wins: the beer shipper providing the fleet assets, their dedicated fleet and the customer shipping the backhaul lane.

Cheers to Sustainability

Eliminating empty kilometers benefits this shipper beyond offsetting transportation costs with additional revenue. Matching their dedicated fleets with backhaul opportunities also helps them achieve their sustainability goals. Other shippers need a means of moving their products around. Leveraging their available assets (that must return no matter what) removes the need for another truck – and its emissions – to be on the road. The key is finding backhaul opportunities that fit into their network’s specific needs – and not the other way around.

Internally, this brewer also has multiple initiatives to reduce their carbon footprint. To reduce emissions from diesel consumption, they have two fleets that use compressed natural gas. They are also making significant investments in hydrogen-powered vehicles to lessen their dependency on diesel fuel in the future. To make their production process more sustainable, they’ve invested in smart hops and barley that require less water during brewing. They have also implemented several ways to use less water when cleaning their equipment.

For most dedicated fleets, finding the right backhaul lanes that fit their specific network and unique requirements can be challenging. Coyote Logistics’ team of fleet specialists and vast network of freight can help you overcome hurdles and generate revenue for your organization.

Are you looking to turn your fleets’ empty kilometers into a consistent source of profits?

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