Privat-Alco is one of the leading companies in the distribution of alcoholic beverages. The company is known for its wide range of products, including beer, wine, spirits, and non-alcoholic drinks. Privat-Alco has an extensive distribution network in cooperation with numerous distributors and retail outlets, and also operates its own chain of liquor stores.
Privat-Alco is recognized for its commitment to product quality, compliance with standards, and adoption of modern technologies. The company actively implements innovative solutions in logistics, marketing, and assortment management, enabling it to maintain competitive positions in the market.
Pre-Implementation Challenges
Manual Route Planning
Before implementing Leafio Rinkai TMS, the logistics team planned routes manually. This process was prone to human error, and there was a clear need for automation to improve efficiency.
Rising Logistics Costs
Privat-Alco relied on a hired fleet, and although logistics costs were manageable at 3–5%, as turnover increased, so did delivery costs. Management recognized the need to optimize fleet utilization and reduce transportation expenses.
Lack of Delivery Execution Control
There was virtually no real-time control over delivery execution. The team couldn’t track whether the driver was at the delivery point or on time, which made accurate analytics impossible. This lack of data also meant they couldn’t assess the real percentage of undelivered products.
Customer Service Concerns
Undelivered goods resulted in customer dissatisfaction, putting partnerships at risk. The company set a clear goal to improve customer service levels by implementing a solution that would allow for better route compliance and real-time comparisons of planned vs. actual routes.
Project Execution
Assessment of Current Transport Management Processes
Primary data was collected on processes related to transport logistics. The specifics of warehouse operations, delivery to points, and transport utilization control were clarified.
Data Exchange Setup
Technical specifications were implemented for data exchange between the accounting system and Leafio Rinkai TMS, as well as between Leafio Rinkai TMS and the control system that receives and stores information from GPS trackers.
Staff Training
Three training sessions were conducted, during which employees were introduced to the methodology and tools of Leafio Rinkai TMS. Staff were trained practically to track plan-fact deviations, analyze statistics, and make adjustments to input data to improve planning quality.
Testing and Launch of Routing in Leafio Rinkai TMS
The system was launched and put into practice in real transport operations. Pilot route executions created by the system were tested, feedback on route realism was analyzed, and settings in Leafio Rinkai TMS were adjusted until realistic routes for transport were achieved.
Results
Optimized Delivery Processes and Cost Reduction
Owing to the implementation of Leafio Rinkai TMS, the company optimized delivery processes and significantly reduced costs. More efficient vehicle use, reduced empty mileage, and improved route planning allowed delivery costs to drop by approximately 10%. This positively affected overall logistics profitability and allowed resources to be reallocated to other key business areas.
Elimination of Undelivered Goods
The introduction of advanced tools and monitoring systems nearly eliminated the problem of undelivered goods—cases where orders were not delivered or only partially fulfilled. Thanks to precise planning, real-time route execution control, and automatic delivery status notifications, the company achieved a 99% reduction in such cases. This greatly increased delivery reliability and strengthened customer trust.
Enhanced Customer Service Quality
Improvements in logistics processes directly enhanced customer service quality. With the implementation of SMS delivery status notifications, customers receive timely updates, increasing process transparency and reducing inquiries and complaints. Additionally, operational control and accurate order fulfillment lowered the percentage of missed time windows and positively affected partner loyalty.
Risk Reduction and Standardized Processes
Route automation reduced risks related to human error: incorrect data entry, subjective decisions, or non-compliance with standards. The use of algorithms standardized processes, improved planning accuracy, and made route distribution more objective and effective. This contributed to more stable and reliable logistics operations.
Real-Time Monitoring and Enhanced Coordination
The implementation of real-time monitoring systems gave logisticians the ability to promptly track vehicle movement, timely order fulfillment, and compliance with set parameters. This allowed quick detection and correction of deviations, improved coordination between drivers and dispatchers, and enhanced overall logistics quality. As a result, productivity grew and the number of delivery errors fell.
We at LEAFIO sincerely appreciate our partnership with Privat-Alco and look forward to continued successful and productive cooperation.
