Revolution in Logistics Management Solutions: How LEAFIO Rinkai TMS Cut Costs by $500,000 for MHP

Efficient logistics operations are critical in today's fast-paced supply chain management, where every kilometer, minute, and dollar counts. Leading poultry producers, MHP and Perutnina Ptuj, have achieved significant improvements in delivery optimization, operational efficiency, and financial savings through the implementation of LEAFIO Rinkai TMS, advanced logistics management software. 

In this interview, Alex Shire, CEO of LEAFIO Rinkai TMS, and Serge Frolov, Director of Logistics at Perutnina Ptuj, share their insights into how this solution has transformed logistics processes for two of the largest players in the poultry industry.

Key Takeaways

Right logistics tools reduce costs, speed deliveries & support growth.

• Automate route & load planning. 

• Track in real-time to adjust. 

• Sync with OMS & WMS. 

• Report on freight spend by lane. 

• Scales easily as business grows.

Alex Shire: "MHP, as the second-largest chicken meat producer in the world, has an enormous logistical footprint. On average, all MHP vehicles travel 90 million kilometers yearly, which is equivalent to circling the Earth over 2,000 times. Managing such extensive operations is no small feat."

He continues: "Before we implemented LEAFIO Rinkai TMS, inefficiencies in last-mile delivery were significant. By optimizing delivery routes and improving point-to-point performance, MHP saved 1 million kilometers during the first year alone. In financial terms, that's approximately $500,000 in savings—a return that far exceeds the system's cost."

Since implementing the system in 2016, MHP has achieved:

• 73% reduction in tardiness: Routes are planned with pinpoint accuracy, ensuring drivers arrive on time.
• 31% faster unloading: The system focuses on reducing wait times at delivery points, where 70% of total logistics time is spent.
• Threefold reduction in mileage overruns: Optimized routing led to a massive decrease in unnecessary travel.
• 8% increase in delivery density: Despite reducing the fleet size from 66 vehicles to 48 at the pilot stage, delivery volumes remain consistent.

"This level of optimization demonstrates that true logistics efficiency lies not just in circumventing traffic but in addressing the time spent at delivery points," says Alex.

As part of the MHP Group, Perutnina Ptuj—the largest poultry producer in the Balkans—began implementing LEAFIO Rinkai TMS to replicate MHP's success. Serge Frolov, who has extensive experience in logistics optimization, led this transformation.

Serge Frolov: "Perutnina Ptuj faced unique challenges. Products have short delivery windows, sometimes as tight as an hour. Additionally, routes are dynamic and prone to frequent changes due to customer demands and external conditions."

He continues: "We started by optimizing transport utilization. In the first year, we reduced the vehicle fleet in Serbia, increasing load efficiency. This alone saved us significant costs, especially with hired vehicles."

• Reduction in inefficient mileage: By improving route planning and monitoring driver adherence, deviations from optimized routes were minimized.
• Introduction of delivery time windows: Customers now have precise expectations for delivery, improving satisfaction and reliability.
• Strategic transport modeling: Scenario calculations allowed for smarter decisions about vehicle types, supply frequency and warehouse locations.

"The system showed us that increasing vehicle capacity (e.g., adding own 20 and 10-ton trucks) could reduce overall transportation costs by matching delivery types to transport resources. These calculations gave us clear visibility into the potential savings," explains Serge.

What sets LEAFIO Rinkai TMS apart is its ability to model operational scenarios and support long-term strategic planning. This was particularly evident during Perutnina Ptuj’s factory reconstruction in Serbia.

Serge Frolov: "During reconstruction, we simulated order distribution based on hypothetical scenarios, not tied to existing infrastructure. The results led to smarter transportation choices—like shifting to larger trucks—which optimized our costs."

This capability has also proven invaluable as geopolitical factors force frequent changes to logistics centers across Europe. The system’s flexibility allows Perutnina Ptuj to:

• Merge routes across regions.
• Redistribute production flows dynamically.
• Support its growing role as a 3PL (third-party logistics) provider, delivering for both MHP subsidiaries and external customers outsourcing logistics operations.

Serge adds: "After implementation of this approach we expect that total delivery costs will be likely or equal to the one we spend now on lust mile only. We’ve seen logistics costs as a percentage of product value decrease, even as delivery volumes increase. That’s a direct impact on our bottom line."

An exciting innovation linked to LEAFIO Rinkai TMS is the concept of mobile cross-docks. These modular, relocatable warehouses are gaining traction in Europe as a flexible and cost-effective solution.

Alex Shire: "Imagine a warehouse that can be assembled and disassembled anywhere, operating even at temperatures as low as -40°C. Mobile cross-docks allow companies to move their storage closer to evolving markets without heavy investments in infrastructure."

He provides a compelling example: "Right now, the cost of last-mile delivery might be 0.10-0.12 euros per kilogram. By repositioning distribution centers using mobile cross-docks, this cost can be reduced by up to 40% because of shorter distances from cross-dock to the customer location. For companies managing large-scale logistics, these savings are transformational."

Several companies have already approached LEAFIO to simulate and validate such strategic shifts using Rinkai TMS. The system's ability to calculate payback and optimize transportation flows makes it a powerful tool for future-proofing logistics operations.

Despite the advanced capabilities of LEAFIO Rinkai TMS, both Alex and Serge emphasize the importance of human involvement in the system's success.

Serge Frolov: "No system, no matter how advanced, works on its own. Success requires dedicated specialists who understand the company’s needs and know how to configure and utilize the system effectively. For example, in Serbia, we set vehicle utilization at 110%, accounting for production fluctuations. Without experienced personnel, such optimizations wouldn’t be possible."

The successes in Ukraine and Serbia are just the beginning. In 2024, significant progress has been made for Perutnina Ptuj in Slovenia, with a plan for 2025 to expand implementation to Croatia and Bosnia and Herzegovina. This next phase will include:

• Integration with SAP to streamline data exchange.
• Strategic modeling of new logistics flows before implementation.
• Testing mixed delivery of live poultry and feed—a first for the company.

Simultaneously, the system is utilized in Serbia to simulate more optimal routes for sales agents. This highlights the system's broad range of applications and versatility.

Additionally, Perutnina Ptuj will leverage the system to establish 3PL operations in the Balkans.

Serge Frolov: "We expect the first results from Slovenia by 2025. The timeline reflects the strong collaboration between our teams and LEAFIO AI as reliable business partners. Croatia and Bosnia will follow, although staffing remains a challenge we’re actively addressing."

LEAFIO Rinkai TMS has proven to be more than just a logistics management system. For MHP and Perutnina Ptuj, it has driven measurable savings, improved operational efficiency, and enabled smarter decision-making at both tactical and strategic levels.

Alex Shire: "The future of logistics management solutions lies in flexibility, precision, and strategic foresight. LEAFIO Rinkai TMS delivers on all these fronts, empowering companies to optimize their resources, reduce costs, improve customer satisfaction and remain competitive in dynamic markets."

As MHP and Perutnina Ptuj continue to expand their logistics capabilities, LEAFIO Rinkai TMS stands at the forefront of innovation, helping businesses tackle the challenges of modern supply chain processes head-on.