Logistics Management - October 2011

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You Don’t Need Super Powers to MakeTransportation Pricing Work for You......Just a Super PartnerMeet SMC³ Man – the Super Partner and guiding force behind SMC³, the leading LTL data solutionsprovider to the freight transportation community!When SMC³’s powerful solutions are part of your transportation strategy, your organizationsucceeds with increased information visibility and accessibility, decreased costs, and better planning andtransportation results.To learn how SMC³ can make transportation pricing work for you, visit smc3.com/smc3manor contact us at 800.845.8090© 2011 SMC³. All rights reserved. SMC³, Bid$ense, CarrierConnect, CzarLite and RateWare are registered trademarks of Southern Motor Carriers Association, Inc.
transportation Best Practices/trends: truckloadMillerCoors tapsdunnage innovationWhen the beer giant revamped its dunnage processes, it realized significantcost savings, ushered in a safer work environment, and found a more fluidfreight model—all while helping the company get a little greener.BY jeff berman, group news editorWhen two large companies merge into one,there’s inevitably going to be a convergenceof operational facets. This provedto be no exception—especially on thelogistics and transportation side—whendomestic beer magnates Miller and Coors joined forces tobecome MillerCoors in 2008.One of the biggest challenges right off the bat was for thenew entity to get its sudsy products loaded onto trailers ina more productive and cost-efficient manner. For example,when the merger became official, MillerCoors discoveredthat they were using different sized pallets for loading beeronto trailers, says Raymond Reehm, strategic sourcing managerat MillerCoors.“The decision was made to standardize on a 32 x 40-inchpallet and begin looking at optimizing our loading pattern intrucks,” says Reehm.Miller had historically used a 32 x 40-inch pallet and abulkhead system, which was comprised of permanent, semipermanent,and portable bulkheads using e-track bars, plywood,and 2 x 4 “A” frames. Reehm says the type of bulkheadpreviously deployed varied by carrier and brewery.This led to a situation where the combined MillerCoorsinitially needed to determine what the optimal approach wasfor creating a false bulkhead at the front of a trailer.“With beer being such a heavy product from the weight tothe volume occupied, we had to create a false bulkhead at thefront of the trailer,” explains Reehm. “Our loads are only goingto occupy 40 of the 53 feet in a trailer, and the load has to gointo the center of the trailer and be able to come off the noseof the trailer before the first pallet is put in. It also has to besecured so loads don’t shift forward and become disrupted.”To do this, the team created a bulkhead using variousmethods of disposable or highly unfriendly dunnage systemsthat were essentially wood and some cardboard.Given the fact that MillerCoors typically relies on a commoncarrier network to more than 500,000 outbound shipmentsper year, it was providing each carrier it used with abulkhead extension comprised of e-track bars, plywood, and2 x 4 “A” frames for each trailer.When the loads made it to a distributor, sustainability wasnot a core component of the process. In a typical scenario,they would remove the plywood and 2 x 4s, with the plywood,which Reehm said was good for 10 to 12 uses, usuallygetting returned, and the 2x4s getting thrown out.According to Reehm, this expense of this first system,multiplied by the number of shipments, cost the company inthe neighborhood of more than $10 million annually. “Thiswas viewed as a necessary cost, given the processes we hadat that time,” he says. “Without that process, we could notship beer.”What’s more, injuries to staff were occurring as a result28 Logistics Management WWW.LOGISTICSMGMT.COM | October 2011
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