Coca-Cola HBC Czech Republic and Slovakia is part of the Coca-Cola HBC group and operates a soft drink production plant in Prague-Kyj and Teplice nad Metou. A member of Coca-Cola Hellenic Bottling Company, which operates in 28 countries in Europe, Asia and Africa, distributes soft drinks in the Czech Republic and Slovakia. The company has 2 production plants and 5 production lines, and produces more than 200 different products.
Challenges faced by Coca-Cola HBC before implementation
The company does not have its own fleet of vehicles and all last-mile deliveries were covered by hired carriers. This led to the problem of controlling the fleet and its mileage. Route planning was also carried out by a contractor, which made it impossible to collect and analyze transportation data.
The main problems of the company before the implementation were:
- 100% outsourced fleet with no flexible cost management
- Carrier rates: only tonnage without taking into account the mileage factor
- It was difficult to control the mileage.
Implementation results
- Coca-Cola HBC began to plan routes independently and hand over ready-made routes to contractors.
- Now, all transportation data goes directly to the Coca-Cola HBC logistics department, eliminating the intermediation of outsourcing companies.
- High-quality analytics of the entire delivery process has been built, including the level of overruns, hitting time windows, and the level of customer service.
- The company revised the tariffing conditions for carriers. Previously, the company charged per liter of product, but after making calculations, the company concluded that it was much more profitable to pay for mileage.
As a result, Coca-Cola HBC increased its sales by 7% while reducing delivery costs by 14%. Working with the old algorithms, it would have been impossible to achieve such results, because an increase in liters sold would have led to an increase in payments to carriers.
We are pleased with our cooperation with Coca-Cola HBC and are confident in the company's further development.
