MODE Global Alcohol Case Study

SOLUTIONS THAT SHIP INVIGORATING LONGEVITY & REFRESHING RELATIONSHIPS

MODE Transports 500 Million Beers a Year for Top Brewer

SOLUTIONS THAT SHIP INVIGORATING LONGEVITY & REFRESHING RELATIONSHIPS MODE’s customer has an annual revenue of more than $10B. They are one of the largest brewers in the world with dozens of well-known beer/seltzer and other beverage brands with distributors in every state in the U.S. Although cracking open a cold one may be considered a relaxing pastime, there’s nothing laid-back about alcohol transportation. Just ask anyone who’s ever tasted a skunked beer about the consequences of delivery delays and lengthy dwell times. There’s more to getting bottles, cans and kegs of America’s favorite adult beverage to distributors than meets the eye. It makes MODE’s more than 20-year relationship with this brewer worth celebrating—and learning from.

CHALLENGES The brewer operated a drop trailer program from a busy, congested main facility The brewer’s mix of 20-30 primarily asset-based and regional carriers had service gaps The company set a goal of 95% primary tender acceptance to ensure capacity As a quality control measure, dwell time had to be under 72 hours for 85% of orders Customer service standards required 92% routing guide execution

SOLUTIONS Nationwide network of 100,000 OTR carriers serving 119 contracted lanes plus several hundred spot lanes in U.S. Dedicated truckload operations team of 10 provides 24/7 customer service Extensive pool of 125 drop trailers at any given time Best-in-class carrier management program and advanced TMS to qualify carriers

RESULTS 1 source to book drop trailer shipments cost-effectively anywhere, any time 10,000-15,000 shipments managed per year 97%-100% primary tender acceptance 90% dwell of under 72 hours 97%-100% routing guide execution

© 2024 MODE Global. MODE Public.

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Supply Chain Challenges

“Our truckload Ops team has over 100 years of combined experience serving this brewer.

Brewer’s roster of primarily asset-based regional carriers had limited range. The customer’s 20-30 non-brokerage partners provided service to some lanes but not all. The inability to pick up other carriers’ trailers and easily secure backhauls on loads outside their regions complicated planning and created inefficiencies.

I’ve personally been with them for 22 years, including four years onsite at their primary facility. Their business is everything to us.”

Dustin Redden, Freight Director at MODE Global

Servicing distributors is demanding and success hinges on carrier performance. The reality is that once the beer is on the truck customer service is in carriers’ hands. The brewer needs vetted, top-tier drivers to support their relationships and ensure timely deliveries.

The brewer’s drop-trailer strategy requires tight coordination of carriers. Beer quality is at risk the longer cases —and especially kegs—sit in the trailer. To achieve the brewer’s KPI of a maximum dwell time of 72 hours for loaded trailers requires committed service from carriers and constant communication.

The service needs of the brewing company necessitated on-call carriers. The brewer—one of the world’s largest —runs round the clock. They need drivers available all the time to pick up loaded trailers dropped in the yard or haul as a live load for rush deliveries.

On-time requirements fueled by demanding beer lovers. Distributors’ receiving rules are unforgiving. They receive shipments in the morning and ship them out in the afternoon to the retailers and your local watering spot. When carriers are late for an appointment or window, they’re often turned away for lack of dock space. In the worst cases, drivers may have to wait a week for another chance.

Why MODE Global The brewing company first tapped MODE more than 20 years ago for MODE’s intermodal expertise. Truckload service was a natural add-on and the combined volume has grown to 10,000-15,000 annual shipments servicing hundreds of lanes across America.

MODE’s expertise in transporting beer by the keg and case is critical to the brewer in maintaining both the quality of the product and the relationships the brewer has with its distributors.

MODE’s stable and committed carrier partners—many of whom have served the brewer for decades—support supply chain certainty. MODE’s seasoned truckload operations team has decades of experience serving the brewer, including seven years onsite managing the customer’s load control department.

© 2024 MODE Global. MODE Public.

“What makes them a great carrier is that they value our brands and understand our business.”

Client Load Control Team Member

www.modeglobal.com

MODE's Solution Set Tapped Top-tier Carriers for Brewer’s Demanding Drop Trailer Program At any given time, MODE manages around 125 drop trailers at the brewer’s main facility. Production at the brewery is around the clock and space in the yard is tight. MODE can source the large number of drivers from its network of 100,000 vetted carriers to ship anywhere in the U.S. MODE’s primary tender acceptance performance exceeds the brewer’s KPI by 2% to 5%.

Secured Capacity to Meet Brewer’s Unwavering Standards The brewer’s carrier compliance mandate is supported by MODE’s best-in-class carrier management and advanced vetting tools available within MODE’s TRITAN™ platform. Client team members can compare carrier performance, specify service levels, select rates and track shipments from the platform.

MODE has a process and cooperative policy with carriers for monitoring trailers to meet standards for trailer condition and cleanliness.

Provided Customer Service Advantages for Brewer’s Valued Customers MODE maintains an on-call schedule with carriers to ensure they have truckers available to cover the brewer’s needs at night or even on weekends. The brewer’s 24/7 need for transportation includes hot loads where MODE provides drivers to pull trailers without delay from the brewery and deliver them to customers as quickly as next day. The ability to backhaul kegs and dunnage is a customer pleaser that MODE—with its nationwide network of carriers—can offer economically.

Dedicated Truckload & Intermodal Operations Team MODE’s committed team of ten people plays a daily role in managing the brewer’s freight needs and achieving routing guide execution averaging 97%-100%—well above the brewer’s KPI of 92%. They consistently broker competitive rates for MODE’s 100+ awarded lanes through outstanding carrier contracts as well as load boards.

Solutions By The Numbers 10M

5%

5%

12-Ounce Beers Shipped Per Week

Higher Routing Guide Execution Than KPI

Better Dwell Performance Than KPI

© 2024 MODE Global. MODE Public.

125 Drop Trailers Continuously Managed

www.modeglobal.com

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