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Freight

Freight services includes both freight for domestic transportation of products and ocean freight for the efficient shipping of bulk beverages internationally, ensuring timely and efficient delivery

Global Freight & Fuel

Inbound and Outbound Freight

  • Must have visibility of breakdown between commodity/fuel vs. compressible/linehaul portion. 
  • Breakdown must be based on contract terms with suppliers or a well-documented approach to splitting linehaul/fuel for reporting purposes. 
  • The split between commodity and compressible should be reviewed once per year to ensure relevance and accuracy. 
    • Inbound Fuel = commodity 
    • Line Haul = compressible 
    • Where freight is bundled/supplier managed = compressible 
Directs Productivity vs. Indirects Productivity

Once a raw material is in our storage or facility, costs move from Directs to Indirects

Global Inbound Ocean Freight & Fuel Framework

Issue: inconsistency across sectors on reporting of inbound freight & fuel for all modes of transport impacting productivity delivery. Recording varies between commodity, compressible or a combination of both.

    Aligned Recommendation:

    • Adapt EU & FLNA inbound freight treatment methodology a global best practice: 
    1. Inbound Fuel = commodity
    2. Line Haul = compressible
    3. Where freight is bundled/supplier managed = compressible

    2022 Considerations & Next Steps:

    • Quantity fuel impact on 2022 productivity delivery for each sector.
    • Report 2022 fuel impact for 2022 as PDR exception - not in actual productivity results.

    Expected Outcome:

    • Harmonize global inbound freight treatment, no longer allowing room for interpretation at the sector level.
    • Incentivize sectors to gain visibility on inbound freight costs and unbundle.

    2023 Considerations & Next Steps:

    • 2023 AOP plan to incorporate new global methodology for inbound fuel treatment as commodity.
    • 2023 actual results to be reported in line with AOP.

Guardrails: 

  • Must have visibility of breakdown between commodity/fuel vs. compressible/linehaul portion. 
  • Breakdown must be based on contract terms with suppliers or a well-demonstrated approach to splitting linehaul/fuel for reporting purposes.
  • The split between commodity and compressible should be reviewed once per year to ensure relevance and accuracy.