"True to Penske's approach of providing customized solutions for each customer, we started by asking the customer what their requirements were and built a custom solution from there," said Moses.
"We look at their network, delivery frequency, hours of delivery, which activities our drivers will perform, and then build a network around those requirements."
Truck Driver Training
The deliveries to the QSR are sometimes made during operating hours as well as after-hours, which requires highly skilled drivers.
"For us, it starts with people," Moses explains. "We need the driver to be trustworthy and customer-service-oriented because about one-third of the stores are still open when a driver arrives."
Before new drivers are assigned a route, they undergo a training regimen that lasts two to three weeks. The training encompasses an orientation to Penske and the customer, along with a rigorous safety course. Following that is one-on-one training; then, shadowing an experienced driver on the route.
Complying with the FDA's Food Safety Modernization Act (FSMA) is another aspect of training for Penske drivers, which covers proper temperature monitoring, safe handling of food and food storage, and deploying the right equipment to do the job.
"Training is one of the most expensive things we do," said Moses. "People say it's expensive to train, but it's even more expensive not to train."
Warehousing Solutions
As the relationship between the QSR and Penske matured, Penske Logistics took on additional warehousing responsibility, including the opening of a large regional distribution center.
Penske manages warehousing and delivery and management of fresh and baked goods, dairy and frozen products. Additionally, Penske manages receiving, warehousing and picking of complementing merchandise for company-operated and licensed stores as well as all items needed to support QSR openings and renovations.
Supply Chain Collaboration
"Communication between Penske and the restaurant is frequent and occurs across multiple channels and throughout the organizations," said Moses.
"There's a senior leadership channel, a mid-level channel and operational channels. We have weekly calls related to operations, finance and inventory. The best way to sum it up is that there's never a surprise in this network.
The constant communication helps the QSR view Penske Logistics as a true partner. We work on network design and investment decisions together because we have established a relationship based on communication. They know they could not be successful in their business without us."
SOLUTION SNAPSHOT
Challenge
Manage product distribution for multiple channels through a single facility.
- Company owned-and-operated stores
- Licensed stores
- Consumer packaged goods
Manage flow of seasonal products to company owned-and-operated locations.
We Provide
Warehousing and delivery of fresh and fresh-baked goods, dairy, frozen and complementing merchandise to company-operated and licensed stores with 24/7/365 coverage.
- Multiple voice directed pick locations
- 125+ tractors and approximately 150 multi-temperature refrigerated trailers
- 300+ drivers, 250+ warehouses
- 2,200+ stores supported
- 550K deliveries/year, 70% unattended
Receiving, warehousing, picking and shipping to company-operated stores and customers.
Management of all products supporting store openings and renovations (U.S.).
Impact
Electric Prechill: While in prechill/loading, trucks are connected to the building's electric grid saving fuel costs, reducing emissions and optimizing temperature for transit.
Meeting Metric Goals: On-time, accurate, damage free and cold chain compliant.
Custom Dispatch Tools: Customized metrics, reporting, and comprehensive driver activity management.
Global Food Safety Initiative (GFSI): Earned IFS certification (International Feature Standard) at all food handling operations.
Engineering Support for Analysis/Re-design: Facility layout, product flow and cube calculation tool.
Productivity Improvements: Implemented voice-pick technology at seven of the operations and achieved 10% to 20% gains.
Activity-Based Pay and Productivity Incentives: Implemented and providing financial benefits.
Design, Implementation and Operation of a 580,000+ square foot facility supporting:
- 900+ licensed stores
- 80+ consumer packaged goods
- 1,300+ company-owned-and-operated stores
