MHP stands as a prominent poultry producer in Europe, boasting 8 international brands and operating across 30 production facilities. With a daily meat production capacity of 12,000 tons, the company has established itself as a key player in the industry.
Exporting its products to 17 EU countries, including the Netherlands, Ireland, Belgium, Poland, Italy, and others, as well as to CIS countries, the Middle East, and Africa, MHP has built a robust international presence.
Operating under a largely vertically integrated model, MHP achieves complete self-sufficiency by producing its own feed. The company's strategic focus revolves around stringent cost control, positioning its poultry production costs among the most competitive in the industry. MHP actively pursues operational optimization to enhance efficiency further and maintain its industry-leading position.
Challenges MHP faced before implementation
While the company initially implemented a transportation management system, it fell short of meeting its requirements. Specifically, the route planning mode remained partially manual, and the tracking of planned versus actual routes occurred in separate programs, hindering the ability to visualize a comprehensive overview. Logistics planning was individualized, with each logistician relying on personal preferences rather than prioritizing delivery efficiency.
Before the implementation of the Transportation Management System (TMS), the company faced several key challenges, including:
- Insufficient service levels lead to customer complaints about delayed deliveries.
- Elevated logistics costs prompted top management to target a 10% reduction.
- Excessive mileage, necessitating a targeted reduction of 5%.
- The absence of statistical data hindering the calculation of delivery costs per kilogram of products delivered.
Implementation process
1. Integration of LEAFIO Rinkai TMS functionality
The temperature regime of 4 product types and the vehicle fleet specifics were considered while planning new routes.
2. Work and collaboration with MHP’s employees
The implementation team worked with the branch's employees and made about 2,000 changes to the OMS map to update the restrictions on truck entry. This made the planned routes 100% realistic and did not violate traffic rules.
3. Data reconciliation
The geographical coordinates of the points have been adjusted so that the routes loaded into the application lead drivers not just to the right building but directly to a ramp.
4. Analytics customization
During the project, more than 20 new schedules and 17 parameters were set up to achieve the project goals, including driver and department-wide evaluation metrics.
At the final stage of the project, the system was scaled to other branches of the company in the UAE and Europe.
Implementation results
1. The project successfully minimized the gap between actual and planned mileage, optimizing operational efficiency.
2. Streamlining the adaptation of new drivers, the need for a two-week training period with experienced drivers to memorize routes has been entirely eliminated.
3. A substantial enhancement in customer service is evident through the customer portal. This allows users to log in, check the expected arrival time of their goods, and gain real-time insights through GPS monitoring.
4. The logistics department now enjoys seamless analysis of driver performance and routes facilitated by a customized analytical module. Informed decisions can be made based on this comprehensive data.
5. The system extends beyond route planning, serving as a valuable tool for calculating future investments. With Rinkai, the company gained a tool capable of determining optimal warehouse locations and ramp requirements, factoring in future logistics costs for all delivery points.
6. The system's functionality achieved a 30% reduction in unloading time at delivery points and an 8% increase in the average number of points on each route. In its inaugural year, the company saved 1,000,000 km of mileage thanks to a unique AI algorithm designed for optimal route planning.
Both teams express satisfaction with the productive collaboration and are optimistic that the project will open up additional avenues for MHP's expansion in the global market.
