Perutnina Ptuj, a leading producer of chicken and meat processing in the Balkans with production assets in four Balkan countries: Slovenia, Croatia, Serbia, and Bosnia and Herzegovina, is a vertically integrated company at all stages of poultry farming - from feed production, hatching eggs, breeding, slaughtering to sausage production and further processing of chicken. Additionally, the company owns other distribution companies in Austria, Macedonia and Romania.
Over the 110 years of its experience, Petrutnina Ptuj has accumulated many loyal fans and its products are now consumed by more than 2 million people daily. The company is represented in 22 countries under the trademarks Perutnina Ptuj, POLI, Jata, Topiko, Pullus, and Agronatur.
Reasons for implementing LEAFIO Rinkai TMS
Perutnina Ptuj is already widely known in Europe. Still, to expand its customer base even further, the company has decided to focus on 2 main aspects of logistics development using LEAFIO Rinkai TMS:
1. Customer service improvement
In today’s increasingly narrowing time slots, it is nearly impossible to create routes that will meet all criteria by manual planning only. More and more, customers require full deliveries within specific time frames. In addition, given that the company's primary focus is the production of fresh chicken, every hour of delay is critical. Each unsold unit of goods means lost profit for retailers, and if the supplier cannot deliver on time, they find a different one.
2. Cost optimization
Cost optimization includes optimizing mileage and the use of additional vehicles. Mileage optimization involves increasing the number of destinations without increasing mileage. Having its own fleet, the company is interested in reducing the number of hired carriers. This is only possible if the fleet is utilized to the maximum, taking into account the carrying capacity and dimensions of each vehicle.
Project results
- Data collection & vehicle selection
It took about three months to collect information about the distribution points. It was necessary to update the data by time slots, determine the exact geo-coordinates of the receiving points and the volume of unloading at each of them. Based on this data, vehicles that could be used for delivery were selected.
- Reduction in the number of vehicles and load maximization
The introduction of the automated planning system LEAFIO Rinkai TMS made it possible to change the routing logic based on the efficiency of vehicle use. At the moment, the actual vehicle load is as close as possible to its planned weight and dimensions. Owing to the right equipment, the company managed to reduce the number of vehicles without reducing the volume of deliveries.
- Empty miles reduced
Reduced number of "empty miles". In Serbia, it is customary that the start and end of a route is often the driver's home, not the warehouse where the vehicle is loaded. This led to an increase in fuel requirements, translating into additional costs for the company. Now, routes are designed with the start and end location in mind. For example, there may be several loading cycles, and in the last one, the driver delivers products to locations in the direction of his home.
- Reduction in late deliveries
The rate of late deliveries has dropped to 3% of the total deliveries. Plus, the company continues to update customer data to achieve greater efficiency.
- New incentive system
Currently, the company is working on introducing a new incentive system for drivers. Previously, the KPI was based on the distance covered by the driver. Now, the focus is shifting to the amount of goods delivered. The more goods delivered, the higher the salary.
The LEAFIO team is pleased to cooperate with such a prominent player in the European market, and we are confident that Perutnina Ptuj will be able to reach even greater heights of success with the new tools.
