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1. Introduction about our customer - one of the largest the brewery company in Vietnam
This brewery company has a long history of 129 years of development with 22 subsidiaries and 5000 employees. They kept their traditional recipe for beer with the help of modern technology and highly qualified staff to grow into one of the leading brewery companies in Vietnam.
As a big manufacturer, they follow a strict logistics process to manage transportation in real-time, which has been proven to improve efficiency and profit. In this article, we will take a deeper insight into how one leading brewery company can effectively manage all contracted transporters in real-time.
2. How the company manages all contracted transporters in real-time
a. Company logistics organization structure
Logistics organization structure can vary from different companies and the demand to optimize the general process. In the case of this brewery company, they have a large network of distributions requiring such a huge fleet from third-party transporters for transportation purposes.
Warehouse: In this logistics process, the warehouse plays an integral part as the first department to receive and create delivery orders.
Transportation Department: This department approves or disapproves delivery orders, and sends information to transporters. It also acts as the final decision-makers in many big problems
Third-party Transporters: Transporters will directly execute the transportation process and are the key to the success of delivery.
b. The process of transportation optimization
To manage all transporters in real-time, the company’s full process of transportation is optimized by AI technology and Machine Learning. First, let’s take a look at the logistics optimization platform implementation to see how technology can change the efficiency of the whole logistics. Overall, the logistics optimization platform can help this company:
Manage transportation services
Manage all the orders in the system.
After receiving orders, the system automatically transfers the orders to transporters, based on the transportation services.
Track and manage transportation in real-time.
Manage transportation in the return way (reverse logistics).
Below is the real case with specific steps of how this brewery company manages their transporters and the whole logistics process:
Warehouse: First, the warehouse is the first place for creating orders on the logistics optimization platform for the brewery products both in the delivery and return way.
Transportation Department: After receiving orders, the transportation department will examine the real-time inventory to decide whether to accept the order or not. If the orders are qualified, the transportation department will approve the order on the platform
Third-party Transporters: Transporters are the key to the whole process since they play multiple roles ranging from receiving the delivery orders, assigning vehicles, drivers and optimizing the route.
Transporters’ Drivers: They are in charge of delivering the goods to the end customers. They are also a part of the reverse logistics process by bringing back the returned items or the package after delivery.
3. Benefits from implementing logistics optimization platform
By implementing a logistics optimization platform, this brewery company can save up tons of operating costs per year and boost the effectiveness of the whole supply chain. The benefits are presented below
a. Automatically optimize route
With a powerful route optimization algorithm, the platform can help the company and its transporters optimize the delivery route and reverse route in a few minutes. The route will be the most optimized in terms of cost and time.
b. Reduce freight expenses
One of the greatest benefits that this platform provides for transportation management is reducing freight expenses. This software system is able to provide savings by analytics and optimization. An AI platform provides suggestions of how to reduce fleet expenses and uses data that provides valuable information.
c. Track transporters’ deliveries in real-time
The company can view where drivers and shipments are in real-time. By using high technology, the company can control the amount of time a route takes and this can then create an efficient route schedule. Also, this provides information as to which drivers and routes are most efficient.
d. Improve warehouse efficiency and productivity
With the constant flow of incoming and outgoing inventory, a well-organized warehouse is an important part of the logistics process. The platform’s inventory management function can record orders and track the inventory number on hand, in transit and when they arrive. Furthermore, reverse logistics will be improved vastly by tracking the quantity of returned packaging and returned goods.
e. Increase supply chain efficiency
The ability to track drivers, inventory and other processes allows the business to increase productivity leading to the improvement of the supply chain and reduction in inefficiency!
Abivin vRoute is the logistics optimization platform that can bring you the above benefits.