In today’s BANI world, where everything is changing and competition is at peak levels, it is important to “stay ahead of the game”. However, this is not always an easy task. One of the key tools for achieving competitiveness and economic sustainability is the implementation of technology and software.

The real challenge is how fully the software will fit into the company’s existing business processes, as this is what determines the economic results and competitive advantage the company will gain in the future.

We have prepared this article to provide a clear understanding of where your company should strategically focus its attention. Our goal is to help you understand the key aspects of technology adoption and show you how it can be a powerful part of your success.

Challenges of today’s manufacturers and distributors

We`d like to start this article with the main challenges that manufacturers and distributors face today:

1. Delayed process

The implementation timeline of technologies often extends beyond the agreed-upon boundaries. This can be attributed to technical or resource issues, peculiarities in the company’s business processes, or insufficient time allocation by key project stakeholders on the client’s side.

2. Staff rejection of radical changes

Managers may sabotage the implementation process because it is a change of established habits that have been formed over the years in the company.

3. Changing priorities

A company may change project goals or resources begin to be allocated to other projects.

4. Change of team

Changing users, project managers, or technical specialists directly affects the course of the project, as there is an immediate understanding that it takes time to adapt to the new team members, as well as to transfer the necessary knowledge to them.

5. The functionality of the system is not used 100%

This can happen for various reasons: insufficient resources or training, lack of understanding of how to use the new system by the company’s employees.

6. The data needed to run the project is simply not kept up to date by users or is even missing from the records.

Before you begin the automation process in your company, you need to carefully determine the degree of automation that is currently used in your company’s inventory management processes.

If your answer is yes, sufficiently automated, then you are on the right track. To assess if there are areas you can optimize – note what percentage of your purchasing mix is already automated. Based on what methodology? How much staff time is spent manually adjusting the quantities recommended by the system for ordering? If you use methods based on forecasting, it is likely that during the uncertainty your business has already experienced weaknesses in its profits: the dependence of the result on the accuracy of the forecast, failures of the entire chain even in case of small deviations. VUCA and the new world of BANI (fragile, disturbing, non-linear, incomprehensible) require companies to use new approaches that correspond to reality, take into account real demand, and promptly respond to its changes.

If your answer is no, your inventory management processes are not automated at all yet, then you should realize that in the complete absence of automation, there is no single approach to inventory management, any manager can form their own methodology and replenishment algorithms that are based on their own experience. This leads to the fact that people become indispensable, it is impossible to solve their tasks when they are absent. Such a system is highly risky and non-transparent for the company’s management. In this case, you need to act now. The automation project will significantly increase the transparency of the system for top management, take away the routine component of the work of specialists, reduce the degree of influence of the human factor, and increase business efficiency.

What are the top 3 steps we recommend for automating your inventory management process?

1.Team Formation

The process of system implementation must necessarily involve:

• project sponsor (owner, co-owner of the company, director, top management)
• head of planning
• head of production or distribution
• head of logistics
• IT-specialists
• main users of the system (managers)

2.Updating data for system integration

The following data are required for calculations:

• current balances in the system
• current orders to suppliers and production
• up-to-date customer orders, distribution orders
• production specifications or distribution routes
• SKU parameters: min. lots, order cycles or frequency, lead-time, actual consumption or forecast, cost price, etc.

It’s worth noting that the lack of certain data is not a reason to give up on automation.

“From our practice, no client company had all the necessary data ready before the project started. However one of the advantages of implementing the Intuiflow system is that all the necessary data is collected, updated, and entered into the accounting system as part of the project. Thus, at the end of the project you have not only customized software but also up-to-date data and properly built processes,” says Alina Dorosh, Senior Project Manager at ABM Cloud.

3. Support for the project

For a project to be successful in the long term, it must ensure:

• Motivate for change: train users to work independently in the system, reward them for achieving results
• guarantee continuous development, and update the system functionality, this is ensured by the implementation team
• data maintenance up-to-date

After figuring out the specific steps that company management must take to prepare for technology implementation, an important question arises: what system to choose and what functionalities are important to have in the system to meet user needs and achieve future supply chain management results. Thus, identifying the key decision criteria becomes an important step. In this regard, we would like to share our top criteria for system selection:

• Quick launch, expected results, and return on investment
• Transparency of the control system for management
• Ease of use of the system by employees
• Possibility of remote work in the cloud Cases of successful implementations in various industries
• The modern methodology on which INTUIFLOW is based
• Developed implementation technology
• Constant updating of the system’s functionality and training of personnel
• Clear priorities, recommendations, system notifications for replenishment, flexible analytics
• Possibility to integrate with any commodity accounting system

For a successful implementation project, from our ABM Cloud team, we recommend using the following scrum methods:

• Daily meetings

It is important to involve all participants in the process as much as possible so that everyone has an idea of how the project is progressing

• Using a task board

Kanban boards help you visually track tasks in progress, as well as generate the following

• An iterative approach and dividing a large task into subtasks

One large-scale task is broken down into smaller tasks and gradually realized. This is done to deliver value to the customer as quickly as possible and respond flexibly to changes

• Formation of customer competence center

  A unified knowledge base is created in the LMS system, onboarding new managers to form a team of interchangeable experts

Our team specializes in implementing an innovative inventory management system for manufacturing and distribution known as Intuiflow. The name means that the system allows you to manage the flow of materials and information intuitively and extremely simply. We offer training services on the system and the methodology behind it, project implementation, and provide ongoing support for your company through our full-time customer support team.

Software details are available at this link: Manufacturing and distribution inventory management system – ABM Cloud.

It is important to note that our system provides high results

The average quantitative results that companies get from using the system can be seen below.

In terms of qualitative changes, we have seen the following positive trends: increased stability of planning, increased clarity of priorities, increased level of control over operations, and reliability of material flows.

In conclusion, it should be noted that inventory management automation is a necessary stage in the development of any company. It affects all aspects of operations – from optimizing financial performance to improving customer satisfaction. Companies can maximize their operational efficiency, minimize risk, and provide high-quality service to their customers.

If you still haven’t considered implementing inventory management automation systems, now is the time. Contact our team for a detailed consultation and an assessment of how we can help you reach new heights in inventory management. Your company will gain an undeniable competitive advantage, so you can manage the future with confidence.

Making art supplies might seem simple, but creating each drawing, palette, or brush involves a careful process that demands attention to detail and top-notch quality from the manufacturers. In the world of competitive creativity, this production is a key chain in delivering art to everyone around you, and the choice of high-quality materials is crucial for customers. Let’s discuss how a SaaS solution can change the way you manage your inventories in the Artistic Sphere and what features and competitive advantages are hidden behind each brush.

Company information:

ROSA is a leading Ukrainian manufacturer of professional art products, hobby and decorating materials. Artists from 36 countries of the world choose ROSA brand products to realize their creative ideas.

“Our mission is to create and improve products that meet the needs and expectations of our customers. We study the latest market trends and introduce new technologies. Our qualified team and state-of-the-art laboratory allow us to create products that meet the highest quality standards.”

The range of ROSA products has more than 10 thousand items, and the map of stores where people can buy ROSA products goods looks like this:

What events accompanied the onset of changes in inventory management?

In today’s BANI world, which has filled life since the start of the pandemic in 2020, project realization has become more complex. The term BANI describes our modernity as something like a fog where it is impossible to predict everything:

B – brittle

A – anxious

N – nonlinear

I – incomprehensible

Here are some large-scale events that have impacted the technology implementation project at ROSA:

• The COVID-19 pandemic broke out just before the start of the project.
• Container crisis that was observed throughout the project.
• A full-scale invasion of Ukraine by russia during the project support phase.

ROSA overcame these challenges during the project, thanks to the high level of competence of its team and the use of technology that allowed them to work and achieve results even in such unpredictable circumstances. Let’s talk about them in more detail.
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What inventory management challenges accompanied ROSA’s business before the SaaS Solution was implemented?

Rosa’s journey has been filled with complex challenges, here are a few of them:

• Procurement planning and lack of up-to-date tools:

  Procurement planning was carried out using Excel. The assortment had more than 20,000 items, and for each of them it was necessary to create a formula, which increased the probability of mistakes.

• Weak of service level:

  the company sought to improve it by becoming a more reliable supplier to the global market.

• Unstructured inventory information:

  Basic logistics terms (minimum order quantity, multiples of orders to supplier or to production, procurement and production lead times), were often atomized and inaccessible to workers.

• Inability to accurately calculate replenishment requirements:

  Had to operate for extended periods of time when some items were out of stock.

• The lack of analytics:

  It was difficult to analyze stocks across the chain.

• Ineffective response to big export demand orders:

  The company received a different export demand order each month, and each time required a response from all sections of the supply chain.

• Difficulty in planning the procurement of long-term goods:

  Some components had long lead times, making it difficult to plan for them.

• Long production lead-time of some products:

  Reducing production lead-time would be an important competitive advantage.

These were some of the challenges that accompanied the ROSA business before implementing SaaS Solution for inventory management.

The main reasons for choosing the software:

The choice of Intuiflow cloud SaaS software at ROSA was influenced by several key factors:

• SaaS model of system operation allowing the company to focus on optimizing processes.
• The system provides a visual representation of problem areas and the current state of affairs, which allows you to quickly identify and solve problems.
• Intuiflow integrates all parts of the supply chain, from raw material procurement to inventory management in the distribution.
• The company provides consulting support, which is an important component of a successful SaaS implementation.
• Intuiflow has an implementation technology that allows systematically recording stages and developing plans for changes in business processes.
• The Saas Product provides numerous planning options, taking into account varying stability or variability in demand for each item.
• Intuiflow allows you to create purchase orders for raw materials and finished goods production based on their lead times, supplier terms, constraints and production line settings.

Also, an important factor was full training on the DDMRP methodology before implementation. Managers from various departments studied the methodology and saw its simplicity and relevance to their ideas about inventory management.

ROSA Project Objectives:

The production inventory management tasks assigned to the project were filled with big ambitions for important improvements:

• Inventory structure optimization:

  The project aims to allocate stocks and materials efficiently, guaranteeing their availability for production and reducing overstock, thus saving resources and reducing financial costs.

• ROI increase:

  One important goal is to increase return on investment (ROI) through optimizing inventory management processes and improving manufacturing productivity.

• Service level improve:

  The project aims to increase the customer service level by ensuring that products are delivered on time and in full, which will increase customer loyalty.

• Lead time reduction:

  Accelerating production and delivery times will allow the company to be more responsive to changes in demand and market conditions.

The main stages of SaaS system implementation:

I. Preparing for the project launch including:

• Survey of the company’s current processes and collection of necessary data
• Data updating and formalization in the inventory management system
• Training of the team in Demand Driven MRP methodology
• Setting up data exchange between the Intuiflow and the ERP

II. Project launches including:

• Supporting managers in working with orders to production, as well as in working with deliveries
• Correction of data from ERP issues
• Intuiflow software training for users

III. Support that provides:

• Training staff to use the system
• Customizing system parameters
• Meetings and recommendations to improve inventory management
• Training on analytics and software settings

After the implementation, ROSA received access to support and recommendations on improving inventory management from ABM Cloud specialists. The planned duration of the project was 7 months, but the project took 8 months. The delay arose due to the simultaneous implementation of semi-finished product accounting and limited programmer resources at the customer.
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Main economic results

After four months of working with the Intuiflow, we have made important steps toward achieving goals:

• Overstock decreased by 30%
• Out of stock decreased by 45%
• OTIF – On Time In Full increased by 13%
• Production Lead Time halved

ROSA has also realized other benefits:

• Reduced reliance on human factors thanks to digitized data recording and reduced mistakes.
• Visualization for suppliers, allowing for better collaboration and forecasting of purchases.
• Use of project results for financial planning and centralization of production planning.
• Active support from Customer Success that maximizes business results.

The SaaS implementation of inventory management systems in manufacturing is a critically important aspect. These technologies enable production optimization, cost reduction, and enhanced resource utilization efficiency. Incorporating modern technologies helps ensure stability in production and product/service deliveries, fostering innovation and the development of new resource management strategies. Therefore, it is crucial to leverage technology to enhance business efficiency at all times.

Reducing logistics costs in the bread industry can be a catalyst for significant business growth. Companies in the bread industry typically have a large fleet of vehicles, which can be challenging to manage efficiently manually. This can lead to issues with timely control, meeting delivery windows, and excessive transportation expenses. Even if a company monitors the performance of its logistics department and implements regular reporting, route reviews, etc., achieving significant results without complete automation is difficult. The example of PrAT Hlibprom demonstrates how the implementation of TMS has led to a qualitatively new level of logistics within the company.

About the Company

PrAT «Concern Hlibprom» is one of the largest companies in the Ukrainian bread market, producing up to 160 tons of various products daily, including bread, bakery goods, confectionery, and dough semi-finished products. The company comprises five processing plants located in the Lviv and Vinnytsia regions.

Collaboration with the country’s largest retail chains and a focus on international quality standards drive Hlibprom to implement innovative solutions in their production and logistics processes.

The implementation of TMS marked the beginning of a global transformation and optimization of the product delivery process. In early 2021, PrAT Hlibprom embarked on an active deployment of the ABM Rinkai TMS system in collaboration with the ABM Rinkai TMS team.

Project prerequisites

• Manual routing was used. Optimization of existing routes or the creation of new routes took from 7 to 30 working days for a logistics specialist.
• There was no possibility to analyze the correctness of delivery time windows to the points of delivery (quantity, quality of deviations in retrospect).
• It was not possible to take into account the history of shipments (travel time along the route, time for unloading at the points of delivery) for prompt route adjustments.
• Analytics on route profitability were prepared manually after the reporting period, making it impossible to react and make adjustments to the logistics process in a timely manner, resulting in excessive costs.
• Manual data entry into the database led to errors by logistics specialists, incorrect placement data for points of delivery, and underdeliveries.
• Inability to quickly adapt drivers due to changes in points of delivery, routes, or drivers themselves, resulting in underdeliveries and delays.
• Absence of real-time tracking of driver visits to points of delivery, delays, deviations from the route.

Project goals and priorities

As part of a series of meetings with the client, the following business goals were identified:

• Obtain a comprehensive automated transportation management system.
• Reduce logistics costs by 12% per 1 ton of transported goods.
• Consider customer service level requirements.

After accepting and implementing the main recommendations, the following actions will be taken:

• Automate the route planning process and minimize the influence of human factors to improve the quality, speed, and accuracy of route planning.
• Increase the level of customer service.
• Optimize the use of vehicles and reduce transportation costs.
• Improve the efficiency of monitoring timely product delivery to customers.
• Select an effective route through automatic comparison of planned and actual routes.

Stages

Stage 1

Preparatory stage

Based on the survey results of the heads of the transportation, warehouse, commercial, and IT departments, as well as the company’s management, an analysis of all the business processes affecting the implementation of TMS was conducted, and recommendations for their improvement were provided. The implementation goals of TMS were identified, along with the necessary changes to achieve the desired outcomes. A work plan, timelines, responsibilities, performance monitoring, and a list of project risks and specific steps to minimize them were agreed upon.

Stage 2

System configuration

Data exchanges between the accounting system and TMS (orders, vehicle availability, route plans) and between the movement control system and TMS (route execution monitoring) were implemented. Additionally, a separate analytical module was developed to provide quick access to all possible indicators (mileage, expenses, service quality, etc.).

Stage 3

Launch of the first plant

Routes from a previous period were replicated in TMS to configure initial indicators. Staff training was conducted, and support was provided during the initial planning phase. Analysis of the planned versus actual route execution was performed, and indicators were adjusted accordingly.

Stage 4

Scaling TMS to two additional plants (Lviv and Vinnytsia) and cross-docks.

Project Progress

• Creation of user accounts and provision of system access to users with different permissions.
• Formation of routes for a previous period to accurately configure the system: time characteristics for unloading one kilogram of products, speed characteristics of trade points and drivers (each trade point has individual characteristics that affect unloading speed; each vehicle has additional characteristics for loading and moving speed).
• Training of all users, including logisticians/dispatchers, in system operations, plan versus actual analysis, and reporting.
• Providing assistance and support in building the initial routes.
• Launching approximately 80 vehicles at a plant in Lviv with static route planning, with the ability to transition partially or fully to dynamic route planning.
• Consultations on system operations and adjustment of business processes.
• Handover of the project to technical support.

ABM Rinkai TMS solution for Hlibprom

Results of ABM Rinkai TMS Implementation

Hlibprom – the first company in Ukraine’s bakery industry to use dynamic delivery route optimization.

Quality indicators

• Fully automated the route planning process and minimized the human factor, resulting in improved quality, speed, and accuracy of route planning.
• Optimized the utilization of vehicles and significantly reduced transportation costs.
• Increased the level of customer service through the implementation of delivery time notifications and the use of waybill data.
• Enhanced the efficiency of monitoring on-time product delivery to customers. Now, the logistics team can monitor route execution in terms of time and sequence through a single interface.
• Automated the process of monitoring deviations from the route, significantly reducing mileage deviations beyond planned routes.
• Created reliable reporting based on GPS-generated actual data, updated daily.

Implemented an analytics module:

• Plan versus actual performance for each vehicle, route, and branch.
• Control of expenses and profitability of delivery points.
• Driver ratings.
• Customer geography.
• Service quality tracking.
• Report on reasons for mileage deviations.

Quantitative indicators

At the pilot plant, comparing July 2021 to February 2023:

• Reduced the number of routes per day by 17%.
• Decreased the average duration of trips by 10%.
• Achieved a 7% fuel cost reduction through mileage reduction.
• Reduced carrier expenses by 100% by using an in-house fleet due to better fleet management and more optimal routes.

At the second plant, comparing December 2021 to February 2023:

• Reduced the total number of daily routes by 31%.
• Decreased the number of employed drivers by 12%.
• Decreased overall mileage for the company’s own vehicles by 1% and for the carrier by 28%.
• Achieved a 38% reduction in carrier expenses.
• Reduced fuel costs by 5%.
• Decreased the average duration of trips by 20%.

At the third plant, comparing May 2022 to February 2023:

• Reduced overall mileage for the carrier by 8%.
• Decreased expenses for the hired fleet by 4%.
• Decreased the average duration of trips by 11%.

Customer Review

Automated freight transport with ABM Rinkai TMS allows the company to provide high-quality delivery services and save up to 25% on transportation costs. The feasibility of automating and optimizing cargo transportation for your company lies in answering the following questions:

• How much time does your logistician spend on planning and organizing the transportation process?
• Are you sure that your shipping costs are optimal?
• Do you have a tool to calculate which fleet is more profitable: your own or hired?
• How do you analyze the efficiency of cargo transportation?

Every participant in the transportation services market has certainly thought about how to organize delivery with minimal fuel consumption, loss of time, and maximum benefit for the company. The desire to simplify this process is quite justified, but without a tool for automating cargo transportation, it is difficult to organize all processes efficiently.

There is a solution – automation of cargo transportation with ABM Rinkai TMS

ABM Rinkai TMS is a cloud-based service for daily route planning, monitoring of route execution, and analysis of transport and delivery point efficiency. The program is characterized by high performance, reliability, and uninterrupted operation. The system uses a best-in-class planning algorithm with fast computing speed.

Automation of cargo transportation

• Automation of route planning, taking into account all factors (time windows, customer conditions, temperature conditions, etc.).
• Creating a unified system for planning, controlling and analyzing cargo transportation.
• Online analytical reporting.

Optimization of cargo transportation

• Use of high-quality route planning tools;
• Control over the transportation process (GPS trackers, notifications to customers, etc.);
• Reducing the workload on staff;
• Saving time on planning;
• Integration with existing systems.
• What does the automation of cargo transportation bring to the company?

The result of cargo transportation automation using the ABM Rinkai TMS system is not just the automation of the cargo delivery planning process, but also, more importantly, control over all stages of the logistics process: transport movement, staff work, customer compliance, calculation of the cost and margin of work with each client. All of this results in significant savings:

• Transportation costs are reduced by up to 20%;
• Vehicle mileage is reduced by 15-20%;
• The route planning process is accelerated by 95% (compared to manual planning).

Among the companies that are already successfully using the AMB Rinkai TMS cloud system are both large international companies and small local ones. Among the clients: Metro (Poland, Czech Republic, Slovakia), Coca-Cola (Czech Republic, Slovakia), Ikea (Czech Republic), MHP, Epikur, Lustdorf, Concern Khlibprom (Ukraine), Marshe (Georgia), Engin (Kazakhstan), Azamet (Moldova), Perutnina Ptuj (Serbia), Kauno Grūdai (Lithuania), and others.

If you want to automate cargo transportation with ABM Rinkai TMS, contact our experts.

Automation of product delivery has its own characteristics, depending on the type of product or commodity. Automation of delivery of finished goods to stores, kiosks, and other points of sale is primarily aimed at saving costs. Delivery points and timeframes in this type hardly change, but the volume of orders changes daily. It is often necessary to optimize the queue in the warehouse. Therefore, routes must be designed to distribute everything, but at the lowest cost. Savings are a key effect of implementing a product delivery automation system. However, the focus is now increasingly shifting to improving service quality, especially when automating the scheduling of perishable products.

In our experience in such companies, routes are almost always planned by the district before the system is implemented, and working with points is heavily dependent on drivers. Companies cannot fully control routes and are too dependent on the human factor.

When planning to automate such deliveries, many different factors must be taken into account, such as temperature conditions, product proximity and the specifics of the goods, the ability to move on the roads and approach customers, the availability of different (owned or rented) means of transportation, different unloading times at points, return times, etc. All these conditions and constraints are taken into account by ABM Rinkai TMS  – a cloud-based solution for automating the delivery of finished and perishable products. It is also possible to use a mobile application for drivers, which reduces overruns by 10-20% and reduces the impact of the human factor in case of unfamiliarity with the area.

Automating product delivery using refrigerated products as an example

Watch the webinar video to learn about the results of poultry product delivery automation by Epikur, a large poultry producer. We also talk about the importance of Customer Success and how to use reports to improve performance with a TMS.

Automation of parcel delivery service

Automation of delivery service of goods, correspondence, documents, etc. Typically, the services of a courier company include the collection and delivery of goods, parcels, letters, etc. In this case, delivery locations and dates are new every day, unlike distribution deliveries, in which delivery addresses are usually unchanged, and schedule and weight change. Therefore, when automating a delivery service, it is necessary to consider both pickup and delivery within the same routes. An important factor that affects the quality of a company’s service is its ability to deliver within the agreed timeframe. Sometimes volume and weight are not considered at all, as time is the limiting factor for routes. In most companies, scheduling is almost always done manually by the district, and there are often significant overruns and violations of delivery deadlines.

ABM Rinkai – automating delivery service in the cloud

ABM Rinkai TMS cloud-based delivery service allows all important factors to be taken into account when planning routes: time windows, pickup and delivery in one route, dynamic planning, not by district. One of the important features of the system is the ability to notify customers of delivery dates. Obviously, the customer is satisfied with the information on delivery times, plus it saves time for the car or courier to reach the point.

Food delivery optimization

Automating the service of delivering food, pizza, sushi, Ossetian pancakes, etc. solves the problem of speed of delivery to the customer in the first place. One of the world’s leaders, Domino’s Pizza, has made speed its unique selling proposition (USP):

And it optimized all its processes with this in mind: order taking, pizza production, and delivery to the customer. This optimization of processes allowed the company to become the most famous pizza chain in the world and improve business profitability.

Since its IPO in 2004, the profitability of the securities of U.S. company Domino’s Pizza has been higher than that of Google (now owned by Alphabet), which went public at about the same time. Analysts have pointed out that CBinsights.

Therefore, when it comes to delivery, the main planning criterion is speed. In most cases, it should not take more than two hours from order acceptance to delivery. Delivery points are new every day. Volume and weight are not considered, as time is the limiting factor for routes (the exception is water delivery). Scheduling, however, is almost always done manually by the district, which is more convenient for the manager planning the routes, since it is quite difficult to do dynamic scheduling without automation. And although food delivery companies often have significant overruns, the savings are often not that important, as the company is primarily concerned with increasing the speed of delivery. It must be admitted that receiving a cold pizza or Peking duck is not very pleasant for the customer. And if the food is not received on time, the hungry customer will choose another company next time.

A program for a food, pizza, sushi, etc. delivery company allows you to schedule deliveries to show up at the exact time and notify customers of the delivery time.

How do you automate your delivery service with ABM Rinkai TMS?

Before you automate your delivery service with ABM Rinkai TMS cloud software, you can participate in our open webinars where we share practical experiences of implementing the solution, or take a chance and contact us for a customized presentation.

How to organize the planning of targeted delivery routes. What problems do companies face in the process of targeted delivery and how to solve them using modern IT solutions, for example, ABM Rinkai TMS. Targeted delivery is present in the work of many companies: home appliances and electronics stores, water delivery to homes and offices, pizza delivery, office supplies delivery to offices, etc. Let’s consider the optimization of the delivery process on the example of online stores.

To increase customer loyalty and remain competitive, online retailers strive to meet the maximum number of customer needs. One of the most important advantages of an online store, in addition to price and reputation, is the flexible and timely delivery of goods.

Optimal route planning for your online store involves solving key issues: Where from? Where to? What? How? How?

1. Panning delivery routes. Where to deliver from?

Planning delivery routes begins with determining the starting point. Warehouse or offline sales points? Market leaders and the most technologically advanced companies have come to the conclusion that goods should be delivered from a warehouse. Why? Here are the main advantages:

• Completeness and completeness of the order.
  
  While in the warehouse, the goods undergo a minimum overload, which reduces the likelihood of mechanical damage. The level of human error is reduced, which ensures that the factory packaging is in its original form, and reduces the risk of losing components to the order (charger, headset, accessories, and other small parts).
  
• The efficiency of loading.
  
  The warehouse staff is motivated to ship orders for delivery, while the store is motivated to sell and prefers the customer to the driver (although he is in a hurry to see customers)
  
• Cost.
  
  When analyzing customers’ business processes, our experts concluded that if there is a central warehouse, delivery from the warehouse is much cheaper, even if you first deliver the missing goods from stores to the warehouse. That’s why we recommend maintaining an optimal level of stock in the warehouse.
  
• Optimal use of transportation resources.
  
  During peak hours, transport is used exclusively for delivery to customers, without wasting time picking up goods in stores and waiting for a commodity expert to ship them.
  

2. Optimal route planning. Where to deliver?

To plan optimal routes for the targeted delivery of goods, it is especially important to have the most complete data on the customer’s location and make the best use of the customer’s geo-coordinates. Unlike an address, which can contain not only the names of identical streets in different parts of the city, but also phrases such as “third arch” or “turn at the willow tree,” a geo-coordinate gives a clear understanding of where you need to deliver.

*Delivery time – the period of time when the customer is ready and willing to accept the order.

3. What to carry?

You need to clearly understand and take into account the weight and size characteristics of the goods:

• How much and what kind of goods can be placed in a particular vehicle?
• Are there types of goods that are delivered by certain types of vehicles?
• Are the rules of commodity neighborhoods used?

4. How to transport it?

You should decide on the transport to be used for delivery: your own or hired. The main advantages and disadvantages:

And perhaps most importantly:

5. How to plan optimal delivery routes?

The company receives orders in different batches, with different frequencies and quantities of goods. Delivery points appear chaotically, and it is impossible to form a clear understanding of how many orders will be received today from a particular area. At the same time, each client is important and wants to have something delivered to their office during business hours, at home after 7 p.m., to their dacha on a weekend, by tomorrow night because it’s a gift, etc.

This complex task can be solved with the help of dynamic route planning in ABM Rinkai TMS. What is it? ABM Rinkai TMS is the best-in-class automatic route planning system. This has been proven by comparing the functionality and efficiency of transport management systems on the market.

The service provides:

• Automatic planning of routes for vehicles and delivery of goods to specific addresses. The planning time in the system is several minutes;
• Allows you to take into account all time windows and customer wishes;
• Send SMS to customers with the time of arrival of the car;
• Control delivery online;
• Optimize transportation costs.

Moreover, ABM Rinkai TMS is not only a best-in-class delivery route planning solution, but also a team of experts who will help you build high-quality delivery logistics business processes and provide the highest level of support. The solution will help you improve your service level, make your delivery more technologically advanced, and put your business on the leading edge.

Automation of transport logistics and logistics optimization with ABM Rinkai TMS can significantly reduce costs: up to 10% of the cost per 1 km of delivery, up to 12% of overruns, up to 15% of total transportation costs. The ABM Rinkai transport logistics automation software is designed for daily route planning, execution control, and analysis of transport efficiency.

Almost any business has a transportation link, so reducing the cost of its maintenance is of interest to managers in any country in the world. Modern programs for the automation of transport logistics are not tied to the country and location of the company, can be used by any company, anywhere in the world.

Description of the transport logistics automation program

ABM Rinkai TMS is a cloud-based solution for planning optimal routes, which can significantly reduce transportation and time costs. All you need to use Rinkai is an Internet connection. When planning routes, the system generates several route options, from which you can choose the most suitable one based on the company’s priorities (price, time, length, etc.). 

ABM Cloud experts conduct monthly open demos of the system. Here are some questions from the participants about the specific features and functions of the ABM Rinkai TMS.

Does the system include a map of each region for route planning?

Thus, the system includes two types of maps: TomTom and OpenStreetMap. For example, for Asian and Eastern European countries, OpenStreetMap maps are preferred because they are more detailed and allow you to set your own labels, roads, close some parts of the territory, etc.

Is the program designed for long-distance transportation or is it possible to make payments in the city?

The system does not distinguish between routes within and outside the city. The main thing is that the route to be optimized starts and ends at the same point, i.e. that the car returns to the place where it started the route and lasts no more than 24 hours.

Is it possible to automate the logistics of courier delivery?

Yes, you can use it. Automation of courier service logistics allows you to plan routes and maintain a high level of customer service. Moreover, if you have obligations to customers to deliver exactly at the agreed time, the system will plan routes taking into account the time windows of deliveries. You’ll get the best results if the route has more than 7-10 delivery points that need to be planned in the most efficient way.

Can we track the vehicle’s location in real-time?

Yes, you can. Through a GPS service or an Android application that transmits coordinates. In real time, you can see the planned route on the map, track which route has already been traveled and where the car is now.

Can the client see how long it will take for the car to arrive, considering the GPS coordinates of the vehicle’s location and the route plan?

Yes, it can. This is realized by sending an SMS message or an e-mail to the client. The message indicates the time of arrival of the car. For individual customers (the most important ones or according to another criterion), you can set up individual access to your database (via login/password), and the customer will be able to track the arrival of the car on their own.

If the car is delayed, is there an automatic mechanism for notifying the logistician about the failure of orders?

This can be monitored online by watching the traffic map of all cars. Problem areas will be colored red.

Does the program take into account signs restricting the entry of trucks?

For example, you can customize your own road map for each type of transport (cars or trucks, bridge height, etc.).

Is it possible to export to ERP for automatic generation of route lists?

Yes, it is possible. There are various integration options for exporting and importing data, both directly from accounting, tracking, and other systems, and via exchange files (uploading/downloading data).

Does the program need to be installed on a computer or can it be accessed via an Internet browser?

Rinkai is a cloud-based solution that does not require installation on a computer. You can log in to the system via a web browser with a login/password from anywhere with an Internet connection.

Do you want to automate logistics in your company?

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ABM Rinkai TMS is an effective program for constructing delivery routes, which provides ample opportunities for reducing transportation costs. Due to the optimal generation of delivery routes and taking into account all limitations, such as distance, delivery cost, time windows, weight, dimensions, etc., the program allows you to reduce your transportation costs by more than 15-25%. In addition, ABM Rinkai TMS provides a comprehensive analysis of the key parameters of transport use and management, which can increase the productivity of the existing fleet by 10%. The program has a user-friendly web interface and mobile application on the Android platform for drivers, which allows them to get information about the routes of delivery in real time. The system provides logistics managers, company owners, and logisticians with ample opportunities to implement a comprehensive strategy to reduce transportation costs.

Features of the program system for building a delivery route

• Optimal creation of delivery routes;
• Routing taking into account all restrictions: kilometrage, delivery cost, time windows, weight and dimensions, and passive interruption time in the warehouse;
• Calculation of unit delivery cost;
• Comprehensive analysis of the key parameters of transport use and management;
• Comparison of the plan and the actual result of the routes;
• Functional mobile application on the Android platform for drivers;
• Integration with your accounting system;
• Rationalization in the use of the hired fleet;
• Simulation of the financial result depending on the choice of transport.

Advantages of ABM Rinkai TMS delivery routing software

ABM Rinkai TMS is an effective and convenient tool that has proven its effectiveness in practice.

• Reducing transport costs by more than 15-25%.
• Optimal use of transport resources to fulfill 100% of orders.
• Total kilometers reduction by 10-15%.
• Economical distribution of points by routes.
• Fleet optimization by 7-12%.
• Involvement of a minimum number of vehicles for maximum coverage of points.
• Increase in productivity of the existing vehicle fleet by 10%.
• Release of hidden reserves due to automation of routine processes.

Presentation of the program for constructing delivery routes

Demonstration of the program for delivery routes construction is held online and allows you to get acquainted with all the advantages and possibilities for your company. You will also get individual advice from leading experts in the field of transport logistics optimization.

Basic functionality of the program for building delivery routes

Do you want to see now how the system works and get acquainted with the basic features of ABM Rinkai TMS? Then watch the video, where for 60 minutes, the CEO of ABM Cloud shows the features of the system and shows how to plan routes more effectively.

The MHP department in the UAE started working with TMS after opening the Dubai office in 2019.

Logistics coordinators – Andie and Joy talk about their experience using TMS for daily route planning. They have worked with the system daily for over 3 years.

They answer the following questions:

• What are the benefits of implementing ABM Rinkai TMS?
• What was the method you used for route planning before? What is the difference with ABM Rinkai?
• What are the main usabilities ABM Rinkai TMS?

Briefly about the results of the implementation of the program for transport logistics ABM Rinkai TMS:

1. The overall overrun rate is between 4.5% and 4.7%, which is the best among customers using ABM Rinkai TMS.
2. The lateness rate decreased by 20%.
3. 41% of employees follow the planned routes accurately, and the remaining routes are carried out with an accuracy of 86%.
4. Observance of routes allowed to reduce overruns by 3 times.
5. Reduced unloading time by 30% due to monitoring with real-time automatic notification.

Last-mile delivery is the most expensive part of the delivery chain, as it involves many variables and requires speed from the performer. Unlike trunk lines, last-mile delivery involves point deliveries, which require many vehicles, and drivers increase the number of stops and complicate the route. In this sphere, we need to consider sanitary, technical, and temperature requirements for transportation of certain groups of goods and the client’s requirements for the quality of delivery. Since the quality of last-mile delivery directly affects the experience and level of customer loyalty, to be competitive in the market, optimize costs, and improve the quality of the process, companies need unique solutions to achieve this result.

For whom it is primarily essential to optimize the last mile delivery:

• couriers;
• logistics companies;
• food delivery companies;
• supermarkets with delivery;
• florists;
• restaurants with delivery;
• pharmacies with delivery;
• electronic commerce;
• FMCG distributors.

Three reasons to think about the implementation of a transport management system.

Automation

In the outdated version of logistics process construction, the logistician plans the route manually, that requires a significant investment of time – up to several hours and increases the risks associated with the human factor. Using TMS allows you to get a holistic platform that helps to manage transport systematically and automate all functions and procedures into a single process. In this case, the logistician has the opportunity not to waste time on a route construction, and he can concentrate on choosing the best option. The transport and logistics program will make all the calculations accurately in minutes. In addition, automation allows you to quickly and efficiently scale a well-established process with a guaranteed level of quality. 

For example, companies that have implemented TMS have been able to improve the speed and quality of route planning:

• In the “Avangard” agro holding, only 3 logisticians plan routes of 24 branches across the country and are 100% interchangeable. 
• For the company “Molochnaya Sloboda” planning time was a problematic point and was difficult to control. Currently, routes are planned in 10 minutes, and full automation of the routing process is configured.
• “FoodEx” managed to reduce route planning time by 4 times. At the same time, the company’s number of clients increased by 2.5 times.

Service Enhancement (NPS)

The critical component of customer satisfaction is the level of service. The quality of delivery is the primary indicator of this service. A separate concept appeared – “Just in time” when delivery should be on time, which means it should be invested in time windows. However, if the time windows are reduced, it inevitably creates problems with the number of vehicles or the delivery costs. 

With the help of TMS, when planning a delivery, it is immediately apparent the amount of transport required to complete the task. With ABM Rinkai TMS, the driver sees the order of visiting points, the planned time at the delivery point, and the client’s time window in the route list. The function of the route sheet alone allows you to get a significant effect from the use of TMS.

At the same time, in addition to the need to increase NPS, B2C companies have the task of maintaining a certain break-even point. It is crucial to find a balance that will suit companies in terms of costs and the client, who receives the goods after the order is placed. With the help of TMS, you can quickly measure the break-even point – correlate the size of time windows with the number of timely or late visits to the client. If necessary, you can generate reports by vehicles and carriers.

As an example of working with customer experience, the case of “FoodEx” balanced meal delivery service is indicative. They implemented TMS in 1.5 months, which immediately increased NPS since the client received his order at a well-defined time. At the same time, even the night before, the client gets a notification with the arrival time adjustment, and he knows exactly when the order will arrive. For the companies operating in the B2C segment, delivery is one of the critical elements of service evaluation. At “FoodEx”, the delivery of the daily ration takes place in the morning between 6:00 AM and 11:00 AM with a time window ranging from 30 to 60 minutes. 

For the companies that included the work with the timeliness of delivery in the KPI  results can be noted: 

• Delays to the client in the “Parus” company have been reduced and don`t exceed 1% of all deliveries. 
• Meat processing plant “Yubileyny” can now deliver products to company stores until 9:00 AM.
• “MHP” (“Qualiko”) has reduced the unloading time at the point by 30%, and the lateness rate has decreased by 20% through real-time automated control.

Cost reduction

Before investing in logistics planning and optimization software, it is essential to understand the profitability of a project. The total logistics costs for each company are available in the financial statements. However, it is difficult to trace the factors influencing the formation of this cost item. Therefore, it is essential to derive key performance indicators for process control and regulation:

• planned and actual mileage;
• the amount of transport used;
• monetary unit for the weight and size parameters of the products planned for delivery;
• the number of exported kg (cubic meters, etc.) per 1 kilometer of distance.

By noticing an increase in costs using these indicators, you can find the root cause of the expenses.

After the implementation of TMS, companies were able to track the improvement in key indicators:

• Engin’s active customer base increased by 25%, while the number of vehicles needed to deliver orders increased by only 14%.
• Delivery costs of the leader in the production of dairy products – “Lustdorf” for one store decreased by 21%, and delivery costs for the delivery of one kilogram of products decreased by 25%.
• Meat-packing plant “Yubileiny” notes the optimization of the personnel of the logistics department by 15%. The reduction in fuel consumption per unit of exported products amounted to 12%.

Service and transport logistics costs are a kind of “scale”. It is crucial to understand whether we are moving towards a balance of the first and second or prefer one thing.

ABM Rinkai TMS is used by companies in more than 15 countries worldwide. The team implements complex projects. Before the start, a simulation is performed technical support team The customer success team is connected at all stages: during implementation and the use of the product. For convenience, a separate mobile application – Route Sense. The solution is constantly updated to meet customer requirements.