When a large, national bakery and snack food manufacturer turned to Penske Logistics to optimize their middle mile logistics across a sprawling network, Penske delivered.
The manufacturer’s middle mile was complex. Products moved from manufacturing facilities to distribution centers and to cross-docks for delivery drivers to fulfill orders with precise timing across the country.
Late deliveries disrupted operations, poor visibility left customers in the dark and order inaccuracies frustrated final mile deliveries to retailers and grocers.
Penske launched an integrated approach combining dedicated transportation, managed transportation services and technology that resulted in thousands of weekly deliveries flowing smoothly from manufacturing plants and warehouses to pick up depots, all with the visibility, accuracy and reliability the manufacturer needs.
Network design and planning are fundamental to middle mile efficiency and cost control. Penske’s engineering team and operational experts analyzed the manufacturer’s data, collaborated to identify pain points and implemented technology to build a more responsive, efficient and resilient supply chain.
The first step in design and planning was Value Stream Mapping (VSM), a comprehensive visualization of product and information flows to uncover inefficiencies. The team conducted audits and evaluated each of their location service areas to find cost-saving opportunities in their operations. This exercise helped the team identify areas of improvement in the operation.
Managing routes across a multi-facility network requires a comprehensive, data-driven approach. Engineers worked closely with the manufacturer’s operational team to optimize routes while balancing priorities, including preferred delivery schedules, production timelines and available resources.
They also factored in ready time for products, delivery windows, curfew limitations and expected dock times and analyzed traffic patterns, typical capacity, shipment forecasts, driver availability, toll costs and safety requirements. The result: improved routing efficiency, better equipment utilization and higher on-time delivery rates.
Distribution center productivity and order accuracy directly determine supply chain performance. Beyond meeting on-time, in-full delivery commitments, facilities must flex operations and staffing to meet production schedules and seasonal demand swings. Technology and automation are unlocking new levels of efficiency in both areas.
Distribution centers rely on manual picking and sorting. Penske implemented an Automated Storage and Retrieval System (ASRS) to optimize order fulfillment, preserve product freshness and remove manual process errors. The changes have made a significant impact with 40% efficiency gains, near-perfect order accuracy and enhanced proof-of-delivery and tracking capabilities that take visibility to the next level.
On-time delivery is the most critical middle mile metric. Delays at distribution centers ripple through the supply chain and have a profound impact. When outbound shipments miss delivery windows, products do not reach stores and revenue suffers.
Penske implemented an electronic proof-of-delivery solution that increased accountability and visibility. Drivers photograph and count every load, uploading the information to a shared portal. When issues arise, the manufacturer can immediately assess the situation and resolve problems faster.
For outbound operations, Penske empowered delivery drivers with SMS text alerts providing real-time updates on inbound delivery status. This visibility reduced depot wait times and improved coordination. Drivers know exactly when their loads will arrive, transforming uncertainty into predictability.
The manufacturer’s reusable trays and carts do more than protect products and reduce costs – they are critical assets. Without trays, production stops.
Penske implemented electronic tracking where drivers record deliveries and pickups, giving the manufacturer instant visibility into container quantities and locations. The team coordinates routing to return empties to the correct facilities at the right time. Pilot programs are currently testing full automation to eliminate manual data entry.
Delivering fresh products on time across a complex network requires perfect synchronization. Penske eliminated silos between transportation and warehousing, creating integrated operations where communication flows instantly and teams work as one.
The impact is visibility at every step. When bakery production runs late or transit issues arise, drivers communicate delays immediately, giving warehouse teams time to adjust staffing, dock schedules and downstream commitments. This visibility creates end-to-end accountability where drivers and loaders own product quality from the manufacturing floor to final delivery.
By integrating transportation, warehousing and technology, Penske transformed the manufacturer’s middle mile from a complexity challenge into a competitive advantage.
The results speak for themselves: 99.3% picking accuracy, 17% productivity gains, reduced inventory adjustments and measurably improved on-time delivery performance.
More importantly, the manufacturer gained complete supply chain visibility and agility to respond to disruptions before they impact customers.
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