Hlibprom Corporation is one of the largest enterprises in the Ukrainian bakery market. The company’s structure includes five processing plants located in the Lviv and Vinnytsia regions.
The company produces and delivers up to 160 tons of products daily, including bread, bakery goods, confectionery, and pastry semi-finished products. It cooperates with the largest retail chains in the country and focuses on adhering to international quality standards.
Implementation Prerequisites
In the past, the company used to rely on manual route planning, which made it inflexible to changes. Logistics specialists needed anywhere from 7 to 30 working days to optimize existing routes or create new ones. Manual data entry led to possible errors in the database, incorrect geodata of delivery points, and product shortages. As a result, transport utilization remained at 60–70% capacity at best.
Drivers’ lack of adaptability led to product shortages and delays whenever changes in delivery points, routes, or drivers occurred. Additionally, drivers’ visits to delivery points, delays, and deviations from routes in real time could not be tracked.
At the same time, accurate delivery time windows (the number and quality of deviations retrospectively) continue to represent an elusive goal. Historical shipment data (travel time along the route, unloading time at delivery points) was not considered to make timely route adjustments. Route profitability analysis was prepared manually after each reporting period, which made it impossible to promptly react and adapt logistics processes, leading to overspending.
Project Goals
- Achieve a fully automated and integrated delivery management system
- Reduce logistics costs by 12% per ton of transported goods
- Incorporate customer service level requirements into logistics planning
Project Process
Preparation
An analysis of business processes affecting TMS implementation was conducted and recommendations for their improvement were provided. Implementation goals and necessary changes to achieve planned results were defined. Then, a work plan with clear deadlines, responsibilities, and monitoring mechanisms was approved. Potential project risks were identified and specific measures to minimize them were developed.
System Configuration
A new approach to data entry was introduced based on delivery time windows to retail points and a new route sheet format was implemented in the accounting system, including the sequence of delivery point visits, time windows, planned delivery time, and unloading duration. A report on vehicle and driver availability was developed. Data exchange between the accounting system and TMS (orders, transport availability, route plans), as well as between the motion control system and TMS (route execution monitoring), was established.
TMS Launch at the First Plant
Business processes affecting TMS implementation were analyzed. Staff was trained and supported during initial planning. An analysis comparing actual route execution with planned indicators was performed, and necessary adjustments were made. The analytical module was improved to meet KPI requirements both logically and in format.
Scaling
TMS was scaled to two additional plants. A delivery scenario through cross-docks was added, and the KPI set and the analytical module’s scope were expanded.
Results
Hlibprom is the first large bakery company in Europe to implement dynamic delivery routing using the automated Leafio Rinkai TMS system. The implementation significantly improved delivery times and substantially reduced logistics costs, including carrier and vehicle maintenance expenses.
The fully automated route planning process minimized the influence of the human factor, improving the quality, speed, and accuracy of planning. Optimizing the use of vehicles reduced transportation costs and increased overall logistics efficiency. Customer service levels also improved due to timely delivery notifications and strict adherence to customer requirements.
Furthermore, logistics coordinators can now monitor route execution by time and sequence in one interface, improving control over delivery punctuality. Automated route deviation monitoring significantly reduced mileage beyond planned kilometers. Reliable reporting based on updated daily GPS data provides complete transparency and control over logistics processes.
Quantitative Indicators at the Pilot Plant:
Due to reduced extra mileage, fuel consumption decreased by 7%.
The number of daily routes decreased by 17%, leading to fewer required drivers—important in a labor market plagued with personnel shortages.
The average trip duration decreased by 10%.
Quantitative Indicators at the Second Plant:
The total number of daily routes decreased by 31%.
The number of engaged drivers decreased by 12%.
The total mileage of company vehicles decreased by 1%, while the carrier’s mileage decreased by 28%.
Carrier expenses decreased by 38%.
Fuel costs decreased by 5%.
The average trip duration decreased by 20%.
Quantitative Indicators at the Third Plant:
Hired fleet expenses decreased by 4%.
The total mileage of the carrier decreased by 8%.
The average trip duration decreased by 11%.
The company also plans to implement our new app for driver-couriers, Leafio Route Sense. This will help ensure driver comfort during work and allow maximum control over delivery progress in real time.
The Leafio Rinkai TMS team is pleased to be working with Hlibprom, a leading company in the bakery market. We firmly believe the implemented solutions will help the company continue to develop and improve logistics efficiency. We are ready to support Hlibprom on this path.
