Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Shipper-Carrier Relations: Coca Cola Supply Looks for a Better Way

We're at a familiar point in the business cycle, a dismal one from the perspective of many carriers

by Staff
November 2, 2009
Shipper-Carrier Relations: Coca Cola Supply Looks for a Better Way

 

4 min to read


We're at a familiar point in the business cycle, a dismal one from the perspective of many carriers.

Ad Loading...

With freight down, carriers take even non-sustainable rates in hopes of staying afloat until the economy starts to produce again. At which point the pendulum will reverse: Capacity becomes king and shippers must pay.

One major shipper, Coca Cola Supply, is looking for a better way.

Several years ago the global beverage giant started to examine the logistics end of its business with a mind to take out unnecessary costs, of course, but also to build a more sustainable system. The effort reaches well beyond logistics, but in a presentation at the Oil Price Information Service's Fleet Fueling Conference in September, Coca Cola Supply's Chris Gaffney focused on the shipper-carrier relationship.

"Historically we have not allowed carriers to be very efficient in doing business with us," Gaffney said, describing one of the lessons learned. The soft drink business is by nature volatile in terms of pricing and volume, and the company didn't present that information to its transportation providers very well.

"What we finally found was that carriers said I can't do a good job utilizing my fleet the way you show freight," Gaffney said.

Matching Demand and Supply

What carriers need, the company found, is to have freight flows presented not just on an aggregate annual basis but on a more detailed level at shorter intervals. The aim, Gaffney said, is to get better at matching Coca Cola's demand with the carrier's supply.

"We've had carriers say, if you will allow me to bid more creatively I can do some things that are healthy for me and productive for you."

For example, Gaffney said, the practice of requiring a carrier to bid lane-by-lane can work against the best interests of both sides. A carrier might find, instead, that if it can commit to two lanes simultaneously it can find efficiencies in a third lane as well.

Gaffney described this approach as bidding against an engineered solution. "We want to do that because we think that allows us access over time to better quality capacity. We think it reduces empty miles. It's the kind of practice we want to see more of."

Collaboration Counts

Coca Cola Supply has used this technique and a wide variety of others to save on the order of $100 million over the past three years, Gaffney said. "We look for people who can help us work on this stuff together. A lot of the collaboration we're doing is because a shipper or carrier we work with says, 'I know somebody you ought to talk to.'"

The company is using standard techniques, ranging from automated dispatch and optimization of functions such as procurement and inbound/outbound routing, to fuel management. "We focus on the little things that add up to big things," Gaffney said.

For example, there's nothing unique about the effort to improve fuel economy and reduce emissions. The company limits idling with a 10-minute shutoff, fuel tanks are kept at least a quarter full, tires are kept inflated and highway speed is controlled. The company also is working at cutting extra weight out of tractors and trailers - it has some 3,000 combinations whose payload weight is up toward 52,000 pounds, Gaffney said.

And he sees a lot of opportunity in collaboration with other shippers and carriers. "We're starting to see a lot more work between suppliers and customers on freight that doesn't have anything to do with what we're selling today. We might have a large retail customer we're doing business with and we're starting to talk to them about maybe moving dog food in to one of their distribution centers … we might be hauling orange juice in a refrigerated truck on one side, and fruits and vegetables on the other."

This kind of collaboration has been talked about for a long time, Gaffney said. "But we're now starting to see the maturity in transportation management systems and other ways of transacting business electronically. I think there's a big opportunity there."

Equipment Innovation

Next: he wants to make better decisions about how Coca Cola products are hauled. "We have a lot of Coke assets that run truckload freight but we haven't necessarily been as thoughtful as we need to be in terms of making the right decisions on the size of those fleets and how we have them deployed," he said. "It's a huge area of opportunity for mileage reduction."

The company has the resources to invest in longer-term innovations, as well. It has more than 140 hybrid straight trucks in service. These are the Eaton direct hybrid system with the Paccar PX-6 240-horsepower engine and Hitachi batteries in a 33,000-pound-GVW, six-bay delivery truck. This year the company is deploying 150 hybrid tractors - again with Eaton-Paccar-Hitachi technology but in a 55,000-pound-GVW single-axle route tractor.

For more on the shipper/carrier relationship, see the November issue of Heavy Duty Trucking magazine.

Subscribe to Our Newsletter

More Fleet Management

Saegic TrackRR Gateway solar-powered trailer telematics device shown alongside screenshots of the Saegic Cloud Platform displaying trailer location, tire monitoring, and equipment status.
Fleet Management•November 4, 2026

Road Ready Becomes Saegic, Launches New Trailer Telematics Gateway

Clarience Technologies is rolling out new hardware and expanding its plans for connecting trailer telematics, maintenance data, and video.

Read More →
HDT Cyber Stop graphic pairing a laptop displaying binary code with a person using a clipboard to inspect a truck chassis, against a background of padlock icons.
Fleet Management•November 2, 2026

Give Your Trucking Fleet a Cybersecurity Walkaround

Your fleet's cybersecurity policies may look good on paper. These seven checks can help you find out whether they’re working.

Read More →
Western Star pulling double trailers in the Permian Basic for Atlas Energy Solutions
Fleet Management•by Deborah Lockridge•October 30, 2026

Kodiak Lines Up Fleets for Driverless Trucking

An agreement for 75 trucks, a new Texas freight lane, and progress on safety validation move Kodiak closer to its planned driverless highway launch.

Read More →
Ad Loading...
Illustration with Star of David and EEOC logo
Fleet Management•by News/Media Release•October 28, 2026

ITS Logistics Settles Religious Harassment Case

The Nevada-based logistics firm agreed to pay more than $396,000 to settle a religious harassment charge involving an employee's Jewish identity.

Read More →
Truck on divided interstate highway driving toward sunrise
Fleet Management•October 27, 2026

Your Trucks Are Busy. That Doesn’t Mean They’re Winning.

High utilization doesn’t always mean strong margins. Looking beyond the current load can help fleets make better dispatch decisions and get more value from each truck’s time.

Read More →
ATA economist Bob Costello speaking beside a graph showing truckload operating costs rising as freight revenue per mile declined after 2022.
Fleet Management•by Deborah Lockridge•October 22, 2026

Why This Trucking Recovery Is Different

Freight demand remains sluggish, but rising costs and tougher enforcement have taken enough capacity out of the market to change the outlook for motor carriers.

Read More →
Ad Loading...
PS Coach tablet interface showing a driver’s coaching inbox, safety event video and coaching advice for a harsh-braking event.
Fleet Management•by News/Media Release•October 21, 2026

Platform Science Adds Dispatch and Safety Tools

Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.

Read More →
Screen capture showing PrePass Intelligence data on tolls
Fleet Management•by News/Media Release•October 21, 2026

PrePass Intelligence Mines Fleet Bypass, Toll and Safety Data

PrePass Intelligence helps fleets measure bypass savings, flag potential toll overcharges, and spot suspicious transactions by combining data from separate systems.

Read More →
Computer screen showing examples of what fleets could ask Motive AI Agents to do
Fleet Management•by Staff•October 20, 2026

Motive Adds AI Agents for Fleet Operations

New tools automate follow-up on fleet data, from maintenance work orders to driver alerts, with two-way voice conversations planned for later this year.

Read More →
Ad Loading...
Graphic art with a heavy-duty tractor trailer and a work truck with the words "trivia lunch"
Fleet Management•by Lauren Fletcher•October 19, 2026

Can You Beat Our Trucking Trivia Challenge?

Test your truck knowledge with 19 trivia questions from Heavy Duty Trucking Exchange. Can you keep up with the fleet pros?

Read More →