"East-West" automated planning of delivery using SAP TM

2018: Delivery planning process automation

On October 2, 2018 the SAP CIS company announced that the logistic operator and the distributor of products for restaurants, hotels and networks of public catering, the Vostok-Zapad company automated planning of routes of intracity delivery using SAP TM. It allowed to increase the level of service and loyalty of partners. The Novardis company acted as the partner in implementation.

Premises and project tasks

The company daily performs delivery, including perishable goods across all Russia. Before SAP implementation of TM in the company other TLS system which did not cope with the large volume of the peak loads given at the moments was set, and many transactions in general were performed manually. So, the employee himself marked delivery points on the map, appointed the car and selected the driver. Planning process in such conditions took 5-6 hours. As a result all this led to failures to meet time constraints of deliveries, and, as a result, to decrease in level of service and dissatisfied clients. In addition, at such manual process, it was impossible to improve performance indicators and utilization of vehicle fleet. Thus, the main objective of the distributor was to create a centralized system of planning of delivery routes, having as much as possible excluded a human factor.

Project Results

For October, 2018 as a result of SAP implementation of TM coordination of planning of intracity delivery on all cities of Russia is performed from the uniform center in Moscow, but not in each of 7 distribution centers. At the same time process automation level within planning grew from 20% to 95%. Routing is started by clicking of one button and takes from 5 to 60 minutes. Due to exact planning the distributor ceased to overload motor transport that allowed to save on repairs and depreciation. At the expense of correctly built route and the best utilization of vehicle fleet, run decreased and the consumption of fuel and lubricants was reduced. Thus, the level of service was succeeded to raise the companies, on the one hand, and to support him, and with another, to cut down specific expenses. Improvement of service, in turn, provided a customer loyalty.

In the near future "East-West" is going to develop the system of delivery on "the last mile": mobile application, visualization of a route on the card, the forecast of arrival and control of events in the course of delivery.

"The specifics of our business such is that we should provide the clearness of deliveries, control temperature conditions, observe standards as we deliver all range of the food products necessary for restaurants and cafe. Our service should be equally stable and qualitative for clients from Sochi to Vladivostok. And so far as concerns thousands of deliveries a day, each of which has the specifics on time, temperatures, weight, a set of products, it is impossible to speak about quality and efficiency without planning process automation. We successfully made it based on the module SAP TM. As result, brought order to basic data, having made tens of thousands of changes to customer information (delivery addresses and ways of an entrance, temporary windows and so forth), increased competences of managers routers, reduced percent of delay and reduced costs for transport due to optimization of routes and bigger utilization of vehicle fleet". Alexander Dovgy, the CEO "the East - the West"

"The high level of service, accuracy of delivery, assembly of orders is an important competitive advantage for the logistic companies. SAP TM allowed the company to make processes the most transparent and fast, to adjust continuous system operation of planning, having reduced, thus, an error probability and unforeseen situations". Alexey Petunin, deputy CEO, partnership director, medium and small business of SAP CIS

2016: Product introduction of SAP

Main project deliverables of SAP TM

Change business:

• Optimized diagrams of the order and windows of delivery
• Optimized the park of vehicles
• Made collaborative planning of a warehouse and transport: waves of planning and wave of completing
• Passed from expert planning to the automated algorithms
• Replicated a System on all company
• Opened new logistic platforms
• Increased the level of service regarding delivery accuracy

Changes in IT

• Replaced software Antor with SAP TM in management of the park and planning of deliveries
• Received the architecture scaled by IT for TM
• Put premises for further development:
  • mobile applications for the forwarding agent and a personal account of the client
    
  • detailed plan fact of the analysis of execution of transportations