Konex is the big pharmaceutical companies in Europe. The company is engaged in the wholesale and retail trade of drugs, as well as the production of its own phytoproducts.
- 1200 employees
- 25 years in the market
Challenges Before Implementing TMS
- High transportation costs due to inefficient route planning.
- Lack of clear analytics on unprofitable routes.
- Limited control over carriers—use of hired vehicles.
- Difficulties tracking delivery performance and analyzing actual transportation movement in real-time.
- Long process of route adjustments resulting in delays.
Project Goals
- Optimization of route planning for local delivery of orders from warehouses to the final destination, reducing discrepancies in payment per kilometer between the carrier and the company.
- Updated road map and the inclusion of all restrictions to create accurate routes.
- Vehicle usage optimization and reduced transportation costs.
- Improved control over the timeliness of product deliveries to customers.
- Complete and flexible analytics (costs, timeliness, consistency, etc.).
Project Implementation Process
Stage 1: Preparing for TMS Implementation
- A questionnaire survey was conducted with the company's management and key departments (transportation, warehouse, commercial, and IT).
- Business processes were analyzed, and recommendations were made for improvements.
- KPIs for evaluating transportation logistics efficiency were recommended.
Stage 2: Integration with the Accounting System
- Automatic data exchange with the customer’s accounting system was implemented in accordance with the technical specifications.
- Data from GPS equipment for hired transport was integrated, along with automatic data loading from the GPS tracking system.
Stage 3: TMS Implementation
- User training for the LEAFIO Rinkai transportation management system was conducted.
- Existing routes were recreated, and the accuracy of delivery point parameters was verified.
- Pilot use of the system was launched, and training was provided on working with plan-fact reports and optimization.
Results of Implementation
Quantitative Results
- 2000 km—reduction in mileage per week.
- 12% reduction in delivery costs.
- 25% improvement in logistics efficiency in terms of time.
- Reduced fuel and vehicle depreciation costs.
Qualitative Results
- Analysis of unprofitable localities and their efficient handling (adjusting delivery frequency, rerouting, or switching customers to alternative delivery channels).
- Real-time tracking of route execution.
- Reduction in driver abuse owing to the mobile portal with updated routes and GPS tracking.
- Transparency in cooperation with hired transport: full control over delivery performance.
- Navigation to route points through integration with mapping services.
- Access to photos of retail locations; simplified orientation and adaptation of new drivers.
- Expanded functionality for cargo pickup, including weight, volume, time, comments, and geolocation.
Customer Feedback
"Implementing LEAFIO Rinkai TMS at Konex has significantly improved logistics efficiency, reduced costs, improved control over deliveries and carriers, and provided flexibility in route planning," said Taras Oleksyuk, KONEX CCO. "This has not only saved resources but also improved customer service quality with precise and fast deliveries."
