Transportation executives are always looking for ways to reduce costs, improve service, satisfy customers, and help their businesses meet their financial and strategic objectives. There are many ways to reduce waste and improve efficiencies in transportation management, and in our latest installment of “Profiles in Transportation Management Excellence,” Jeff Bishop, Category Manager Transportation and Logistics Procurement at Molson Coors shared how Molson Coors, in partnership with Uber Freight, is leveraging drop and hook to drive continuous improvement and business benefits in its transportation operations.
Cold Beer and Record Hot Temperatures
Across the U.S. and many parts of the world the last couple of summers have been record-setting hot. I asked Jeff how this year has been for Molson Coors so far, particularly from a transportation standpoint, and how the hot weather impacts sales and their operations.
Jeff comments that their business has been very good, especially around the July 4th holiday in the U.S. To handle the increased volume without disappointing customers, Molson Coors has asked their distributors to carry more inventory going into peak season as a buffer against any potential production issues. This smooths out transportation requirements and keeps customers happy.
That being said, the severe heat puts extra strain on transportation requirements since flavor can deteriorate with prolonged exposure to heat. Jeff says his team closely monitors each load to make sure it is picked up immediately after loading and travels directly to their distributors without any delays or side trips. In the past few years, the company has also used temperature-controlled trailers in certain situations, as Jeff explains in the short clip below:
The Use of Drop and Hook
Jeff notes, “We as a shipper are extremely drop load heavy with 80-85% of our shipments going out on dropped equipment because of the volatility in our production. We are a make-to-order operation with only one to two days of inventory in our onsite warehouses, so drop trailers are important to us and Uber Freight has been a good partner.”
In this short clip below, Jeff explains how Uber Freight’s Powerloop service works for them:
The Importance of Visibility
Since Molson Coors’ load control teams constantly are monitoring shipments through extreme heat or cold conditions, they need technology to supply continuous location data. Jeff notes, “Uber’s Powerloop trailers are state-of-the-art equipment with real-time GPS tracking capabilities, so we always know what’s happening with our loads. We can access this data through Uber’s portal. Real-time data has, over the last 3-4 years, become a key component of monitoring our carriers’ performance.”
Opportunities Going Forward
I asked Jeff what are the biggest opportunities they see for 2025 and beyond. He comments that they are working with their carriers on sustainability initiatives. “Whether it’s alternative fuels or electric vehicles, the industry is pushing hard in that direction.
“The other opportunity is in mode diversification. We’re looking to use more intermodal as well as incorporate our leased fleet of about 400 insulated rail box cars to ship long hauls.”
Jeff notes there are also challenges. Right now the trucking market is soft and rates are favorable. But he knows that won’t last, so they try to work with their carriers to smooth rates over time. Watch the short clip below where Jeff outlines their approach to transportation procurement:
Drop and Hook is Win-Win
Jeff says making sure drop and hook is win-win for Molson Coors and their carriers is an important part of their strategy. He had many great suggestions and insights along this line, so I encourage you to watch the full episode to learn more. Then post a comment and keep the conversation going with your questions and comments.
