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PepsiCo Saves $1 Million on Fuel with PGE’s Flex Connect Program

Alexandra Blake
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Alexandra Blake
11 minutes read
Блог
Декабрь 24, 2025

PepsiCo Saves $1 Million on Fuel with PGE's Flex Connect Program

Recommendation: implement grid-optimized routing and real-time energy metrics for cargo shipments in the northwest to achieve saving and reduce annual energy spend.

In february data from the beverage-and-snacks company shows that a utility-backed route optimization approach lowered energy per mile and improved load efficiency across ocean lanes and inland hubs; savings reached approximately seven figures across the operation.

To scale, this approach is built on sustainabletransport pathways that link cargo through ocean routes and inland corridors. The model accounts for seasonal demand, giving teams the details they need to re-route shipments without disrupting receive windows, and it remains locked to a single data backbone for auditability.

In practice, lanes that carry wine and other seasonal cargo saw earlier consolidation and multi-stop sequencing, reducing idle time and unlocking more precise loading. The operation team used linkedin updates to receive feedback from regional partners.

Board members can просмотреть the full data set and metrics, including energy-savings trajectory, regional breakdown, and port-to-port performance. Operators can still adjust the plan to keep service efficient and ensure cargo arrives in time; receive cycles align to a right cadence.

Details gathered across operation, cargo types, and routes show that sustainabletransport choices can maintain service levels while trimming energy costs across ocean and inland networks.

Strategic Outline: PepsiCo’s $1 Million Fuel Savings via PGE Flex Connect and Williams-Sonoma Tariff Readiness

Recommendation: implement automated refuelling scheduling at distribution hubs using wallbox units paired to tariff signals to trim energy-related costs by about $1M.

Strategic outline: tariff-readiness governance paired to automated energy-flow control to capture about $1M of annual savings. Steps: formalize commitments across logistics, procurement, and distribution; align delivery windows to tariff signals; deploy wallbox-based metering at key sites; publish handouts on site and on linkedin; track публикаций and validate results; maintain transparent, public-facing updates.

carolina region will adapt operations; robinson leads cross-functional integration; collaborating alongside partners like heineken and other cargo hauliers to ensure steady deliveries and tariff-data alignment. Commitments cover delivery timeliness, tariff visibility, and faster refuelling cycles.

Technology stack includes wallbox devices, cloud telemetry, and site dashboards; it enables automated refuelling scheduling and tighter refuelling windows. Expect zero idle time, faster deliveries, and smoother surge management, with clearer flows between depots and customers.

KPIs include on-time delivery, tariff-forecast validity, refuelling cycle time, surge avoidance, and cost reduction near $1M. Review cadence: quarterly site audits, публикаций in internal handouts, and active collaboration across teams before a surge; maintain valid commitments and faster delivery cycles.

PepsiCo Fuel Savings with PGE’s Flex Connect Program and Williams-Sonoma Tariff Readiness

Recommendation: adopt daytime-load optimization aligned to utility tariff signals to cut energy costs. Implementation targets approximately 60% of daytime consumption shifted to off-peak windows, delivering 8–12% reductions in daytime demand charges across the network. This shift enhances fleetsustainability and supports energytransition in the northwest corridor, where york-based centers process most shipments. The quest aims to capture full value from grid signals, spurring engagement among partners and distribution hubs.

Tariff readiness for Williams-Sonoma anchors cost resilience by aligning import, transit, and storage costs to daypart prices. ila-usmx framework accelerates implementation and strengthens engagement among partners operating in york and northwest corridors. Latest regulations in china affect the cost curve, yet daytime alignment remains essential for energytransition.

Packaging optimization supports energy savings while cutting plastic usage. By redesigning secondary packaging to reduce weight by approximately 15% and switching to recyclable materials, distribution energy intensity declines, boosting daytime efficiency and fleet-lifecycle reliability.

february milestones arrive amid urbn route-optimization experiments in the northwest, where eagles monitor daytime windows. A monster risk from china-based supplier volatility remains, yet ila-usmx fosters partner engagement and tightens contingency plans; later phases extend daytime shifts to additional fleets and centers across the urbn footprint.

Implementation roadmap centers on a 90-day sprint; KPIs include daytime-peak reductions, load-shift progress, and packaging-weight improvements. Site owners report monthly to the northwest network and york hubs; theres a clear path to expansion as daytime shifts scale across the urbn footprint.

How Flex Connect Achieved $1 Million Fuel Savings

How Flex Connect Achieved $1 Million Fuel Savings

Today’s action: implement a phased rollout focusing on road routing discipline, energy procurement coordination, and driver practices to realize the amount saved across the fleet.

  • Road optimization reduces dead miles and idle time in truck routes, targeting megawatts of savings across Gulf corridors.
  • Expanded telematics fill incomplete data gaps; evocharge schedules and supplier inputs align charging windows with truck operations.
  • Seasonal demand adjustments are integrated, ensuring seasonal lanes avoid peak-rate windows without compromising service.
  • The rollout includes a clean energy mix at hubs, with amys and nike vehicle operations participating in a pilot to demonstrate sustainable energy use.
  • Rates, incentives, and energy contracts are monitored; supplier says the amount saved across the network.
  • pandemic-era resilience is embedded: rolled learning plans, watch dashboards, and disciplined governance support safe rollout.
  • Identify factors that hinder deployment and remove blockers to speed uptake.
  • The least disruptive changes were prioritized, emphasizing driver training, data quality, and consistent practices across the fleet.
  • Deadhead reductions are tracked by truck segments, with targets reviewed daily and adjustments announced today.
  • Rolling standards for load planning, maintenance, and idle reduction guide the rollout; la-z-boy and ledson case studies show cross-functional gains.
  • couldnt rely on gut feel alone; the team used data-driven practices and evocharge partnerships to coordinate energy purchases.
  • looking ahead, the plan looks to expand to other regions while maintaining a sustainable cost curve and high service levels.
  • announced metrics include megawatts saved, reductions in dead miles, and a cleaner energy mix across the supply chain.

What Data to Track to Validate the Savings (fuel usage, miles, and route changes)

Adopt a single-source data solutions stack that a fleet manager can own, delivering actionable insights. Innovation hinges on capturing energy consumption, miles driven, and route deviations per shipment; almost built for site-wide visibility, this should feed публикаций and executive dashboards.

Capture auto-telematics fields at trip level: engine energy use, start/stop idle duration, and precise route changes via GPS stamps; dont rely on weekly receipts alone; this minimizes infuriating gaps that faces managers during audits.

Link energy metrics to volumes moved; track wholesale and foodservice ships and shipments, noting shifts in carrier shares. Tie changes to costs, bill lines, and emission metrics; this provides a concrete view for the auto fleet team and the manager to act. This capability helps sell the value to wholesale clients.

Monitor fleet mix by OEM and chassis such as iveco and amys; record charger availability and usage; region coverage includes gulf ports for cross-border routes. Capture the data alongside other sources to validate savings as a cross-functional effort.

Data quality rules: dead data must be pruned; build QA gates at the site; publish results to публикаций and keep a clear audit trail tied to the bill and snack category planning. Align with non-production sources to ensure consistency and accountability.

Cadence: weekly reconciliation, monthly reviews, and quarterly summaries. When anomalies appear in idle time or route deviations, run a root-cause drill and adjust routing, charging, and maintenance; then share outcomes with the wholesale channel and partner networks to reinforce delivering value across the business.

PepsiCo Implementation Timeline: From Pilot to Full-Scale Deployment

Recommendation: Form a cross-functional leaders council across transportation, logistics, and digital teams to drive supplierengagement, define ambition targets, and secure measurable saving across the network. Align incentives toward zero-defect delivery and publish a monthly newsletter to keep youre teams aligned; initiate the pilot by using iveco tractors and refridgerated containers to validate ops before scale.

  1. Phase 1 – Pilot blueprint (Months 0–3):

    • Scope includes key corridors, drayage lanes, and containers;
    • appoint a management lead and a dedicated supplierengagement owner;
    • establish baseline metrics: on-time rate, dwell time, transport miles, and energy per mile;
    • integrate digital data streams for real-time visibility;
    • prepare nasdaq-style governance reporting and share early learnings via the newsletter; help teams align
  2. Phase 2 – Digital stack & fleet alignment (Months 4–6):

    • scale telematics, EDI, and WMS/TMS feeds;
    • standardize data models for containers and drayage moves;
    • measure saving from route optimization and mode shifts;
    • expand supplierengagement among top vendors;
    • coordinate via iveco for fleet readiness and utilize refridgerated specs for cold chain;
  3. Phase 3 – Launches and regional rollout (Months 7–12):

    • extend to additional regions;
    • activate auto-scheduling and dynamic routing;
    • monitor delivery performance against targets and adjust lanes based on data;
    • draw on coca-cola case studies and glazers references to accelerate uptake;
    • maintain supplierengagement with clear SLAs and feedback loops;
  4. Phase 4 – Scale, optimize, sustain (Months 13+):

    • optimize loading plans, drayage coordination, and yard flows;
    • embed continuous improvement through a formal feedback loop and monthly newsletters;
    • pursue zero-disruption objectives and implement predictive maintenance on the iveco fleet;
    • strengthen governance by engaging senior teams and management oversight;

Key outcomes: great visibility across networks, measurable saving, zero-disruption refrigerated delivery, and a stronger supplierengagement framework across teams and partners. This plan supports leadership alignment and accelerates supplier adoption across modes, while keeping focus on a low-cost, reliable cold chain. отредактировано

Williams-Sonoma Tariff Exposure: Categories, Regions, and Timeline for Risk Assessment

Recommendation: Deploy a zero-based, exec-led tariff exposure map covering all product families to achieve full coverage; assign owners, and establish a center of excellence to drive best-practice workflows. Use a simple, fast model to reduce time-to-insight and enable actions that improve capital efficiency.

Categories span hardlines, textiles, home decor, kitchenware, and electronics, each carrying a different rate schedule. Map each SKU to a harmonized system code, assign ownership at the product line level, then roll up to category-level exposure for clear, exec-aligned reporting. Involve employees across sourcing and production to validate classifications and tighten control.

Regions include North America, Europe, Asia-Pacific, and Latin America; MEA is treated separately due to variance in duty lines. Track cross-border flows, depot locations, and near-shore moves to minimize disruption and optimize landed costs. Digitally sync data from suppliers and internal systems to support fast decision-making.

Timeline for risk assessment: november kickoff; latest data pull includes item-level codes and regional duty baselines. Phase 1 targets data gathering and cross-border flow mapping (2 weeks). Phase 2 covers model design and scenario testing (3 weeks). Phase 3 validates results by management and exec sponsors (2 weeks). Phase 4 translates findings into a transition plan, governance setup, and implementation steps (2 weeks). sbti-aligned sustainability checks are embedded in every phase and tracked in a central center.

Governance and actions: establish a full cross-functional team chaired by an executive, including sourcing, production, compliance, logistics, and finance. Create a center-led operating cadence and digitized dashboards to share status among management and employees and enable quick decisions. Provide копировать-ready templates so teams can копировать analyses across depots and production moves. Ensure an easy transition path that preserves production capacity while shifting toward higher compliance and lower risk. Focus on minimizing disruption and capturing gains from near-shore moves where feasible.

Metrics and risk posture: monitor share of total landed cost attributed to tariff exposure, track saving potential, and compute a risk index by region and product line. Prioritize high-risk categories for supplier negotiation and alternate sourcing while maintaining quality. Brace for potential cost increases and pivot quickly if a tariff change occurs. Compare current versus baseline scenarios to ensure a transparent narrative for capital allocation and management review. If a fail occurs, escalate to executive action and trigger a re-run of the model.

Tariff Mitigation Playbook: Sourcing, Inventory, and Pricing Adjustments for Retailers

Recommendation: Build a tariff-risk matrix across origin codes, secure dual sourcing for high-risk goods, and set automatic price bands that trigger adjustments when duties rise by 5–10% and remain elevated. Talking points support quick action by cross-functional teams.

talking points for sourcing: dual sources for 20–25 high-risk SKUs; two credible suppliers per SKU; benchmark against Heineken and Lite-On; route shipments via south-origin corridors where duties are lower; consolidate into containers to reduce dock charges; embed constraints into terms; training teams to renegotiate terms; schedule encore reviews quarterly; expands supplier options gradually to mitigate single-source risk; address corner-case SKUs with targeted terms; monitor capacity constraints.

Inventory planning: implement rolling safety stock by SKU, targeting 6–8 weeks cover for high-tariff exposure; use container-level visibility to track shipments end to end; fully align inventory actions with supplychaindecarbonization goals; include amys case studies to illustrate risk-adjusted stocking; develop a proactive replenishment cadence to avoid stockouts in peak windows.

Pricing adjustments: apply dynamic pass-through for tariff swings; ready price bands triggering increases or offsets when duties rise; anchor pricing on elasticity data plus margin impact; execute promotions for some SKUs to protect volume; document savings from reduced landed cost to shares across teams.

Governance: rolled-out training across regional teams; establish clear authority for tariff-impacted SKUs; plan later reviews; ensure visibility to leadership; address concerns early; maintain a steady plan with encore sessions to lock in gains.

Area Ключевые действия Inputs / Data KPIs Timeframe
Sourcing Dual sourcing; route consolidation; supplier renegotiation Tariff codes; origin data; supplier capacity Share of volume from low-tariff origins; on-time delivery 0–3 months
Инвентарь Rolling safety stock; regional hubs; container tracking Forecast error; lead times; container data Inventory turnover; stockouts 1–2 quarters
Pricing Dynamic pass-through; price bands; targeted promotions Tariff rates; elasticity data; cost inputs Gross margin; price realization 6–12 недель
Governance Training; authority matrix; encore reviews Plans; roles Plan adherence; policy compliance Продолжение
Visibility & Risk Dashboards; scenario planning Container data; tariff announcements Forecast accuracy; risk score Monthly