Logistics optimization for a confectionery manufacturer

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ABOUT THE CLIENT

The largest manufacturer of confectionery products. The company supplies products not only throughout the Republic of Belarus, but also successfully delivers beyond its borders. The company is constantly improving its production technologies, thereby creating an internal need for the use of progressive solutions to optimize business processes.

For daily distribution of products, the company uses more than 50 units of vehicles from its own fleet and about 50 units of hired transport.

SOLUTION

To solve the first problem, our company employees held a series of new meetings with heads of related departments interested in reducing costs and increasing efficiency.

The tools and approaches that help achieve significant results were demonstrated in detail. BUT! It all ended with modeling and demonstration of dry functionality.

Additionally, an excursion was held for enterprise managers in several Belarusian companies where the INFINIUM LOGIMUS System has already been implemented, with the help of which the profitability of these organizations is already increasing daily. It was in production, where optimization results were achieved not by “inflating” the ability to create third-party modules, thereby increasing the check, but on the basis of the existing expertise in INFINIUM, which allows optimization in any company.

The opportunity to “feel” the result of successful implementation determined the receipt of categorical consent to begin implementation!

The conclusion of the solution to the first problem – it all depends on the customer’s motivation and his desire to participate in optimization. And for this, often, you need a clear plan from above and support for contact, without cascading tasks to those who can deliberately sabotage in order to preserve their personal uniqueness and confirm their professional suitability.

But solving the second issue required special efforts.

It is not always easy to break through the wall of opposition, and if it is built from existing personal preferences, then it is doubly difficult. At this enterprise, SAP did not justify itself, but the “love” of some employees for it could become an obstacle to the implementation of the LOGIMUS System.

The situation was saved by the fact that INFINIUM has its own 1C programmers. Therefore, it was decided to write an EXTERNAL INFINIUM LOGIMUS-1C integration module to automatically unload orders for the delivery of confectionery products to stores across the country, as well as to implement many other tasks. As a result, the company’s logisticians began to create optimal routes and tasks for drivers by pressing just a couple of buttons. And back in 1C, generated waybills and a lot of other data for financial accounting began to arrive from LOGIMUS.

The conclusion of the solution to the second task is that it is important to “reach out” to innovative-minded employees who will SEE the effect of the implemented LOGIMUS solutions at their enterprise, and will UNDERSTAND that their competent initiatives are obvious to management.

What happened next?

INFINIUM audit and implementation specialists spent three months at the enterprise to smoothly, without interruption from performing their main duties, train all specialists in the enterprise’s logistics department in the revolutionary LOGIMUS product. At the same time, it was possible to ensure a smooth transition from old to new, without any disruption to established business processes.

Who didn’t like it?

Discontent has emerged among some drivers. If previously they received a route with instructions on how to go and what time to arrive, then with the LOGIMUS System a lot has changed. The problem turned out to be that, firstly, the route and mileage are now known in advance, and it is also included in the electronic waybill. That is, go as you want, but they will only pay you what is on the waybill. This showed that, despite the GPS monitoring system installed 10 years ago, no one actually checked the mileage of cars using “navigation” and the waybill filled out by the driver. Drivers could previously Ascribe mileage as they wished, and the enterprise simply did not have the manpower every evening, when accepting each waybill from 100 drivers, to thoroughly check the correspondence of the mileage declared by drivers in the waybills to the actual mileage according to “navigation”. And secondly, our System has become fully automatic to monitor the work of drivers. Therefore, it is now impossible to leave the route and stand somewhere in quiet places before returning to the enterprise. In short, it became necessary to actually work all working hours, and without additions (and therefore without draining the saved fuel).

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In the July period of 2021, the company used about 100 trucks for delivery (more than 50 of its own and about 50 hired), then in the same period of 2022, with the same volume of product delivery to stores, only 40 vehicles were enough!

Not only direct costs for the size of the vehicle fleet were reduced, but also indirect ones, which involved a greater number of services and resources.

And this was only led to by the first step, which we do not stop at. Seeing such results, the company’s management initiated further assistance in automating many types of analytics, which will allow the well-known manufacturer of confectionery products to more accurately control the profitability of delivery to retail stores and timely adjust prices and volumes of goods.

Next up is a driving quality assessment system, KPIs for employees of all services and significant integration into related processes, which will further increase the economic effects for this enterprise.

The case of this client once again convinces us that only deep immersion and collaboration lead to meaningful results. A solution gathering dust on a shelf does not produce results. Therefore, each project for us is a responsibility for the implementation of not only software, but also training in the technology of its use, taking into account the specifics of the work of any company.