Case study
We know how to easily find out the true cost of shipping
Take a look at a case where our program helped a traditional Wallachian company to find out the exact price for transport. Maybe even every kilogram of product.
months from project start to implementation
CZK for transporting a kilo of bacon (and many other exact figures)
making deliveries cheaper using new data and tools
million CZK saved annually
What Krásno experienced, you can experience too! The transition to the new system is smooth, you don't pay for the implementation.
Let's set up a meetingMP Krásno
Czech start in the sausage heaven
The family-owned company MP Krásno, a. s., with a tradition since 1855, supplies a number of retail chains and retail networks in the Czech Republic, Slovakia, Hungary and Poland. In order to continue to keep up with the times and the competition, it knows that it cannot resist innovation, but constantly improve the management of the company.
5
the largest meat producer in the Czech Republic
2 mld.
crowns of turnover
100+
own vehicles
100%
pressure to innovate
Starting points
- The route planning system in use is not meeting expectations.
- Transport costs cannot be distinguished.
- Control of driver behaviour is lax.
- Actual transport costs are only estimated.
- Lack of data for informed traffic management.
Benefits of change
- Detailed costs are differentiated according to the required parameters.
- The efficiency of different transport modes and situations can be simulated.
- The involvement of external transport makes deliveries cheaper.
- Driver losses can be quantified.
- The client's position in setting prices is strengthened.
Thorough analysis takes time
We do not draw conclusions from small, random or irrelevant data.
September 2018
We start with a thorough analysis of transport needs and performance.
November 2018
We introduce a new planning system and link it to monitoring tools. We systematically collect selected data.
December 2018
In-depth analysis of transport needs and performance is ready.
January 2019
A SAP/BNS data bridge between Solvertech Tasha planning application and internal ERP is created.
February 2019
Tasha plans first delivery routes in Slovakia.
March 2019
Tasha plans all transport in the Czech Republic, Slovakia, Poland and Hungary.
April 2019
Tasha connects with vehicle tracking systems. We can compare the plan with actual performance.
June 2019
We compare the cost of own and external transport. We are able to select the more cost-effective solution.
The client is studying the results
and wants to know more!
We keep working.
October 2019
We know the exact transport costs per customer and per kilogram of goods according to the plan.
March 2020
We start using GPS to measure drivers' actual distance travelled and time spent on the route. We get the real transport costs.
November 2020
We have in hand the monitoring of daily fuel consumption per driver and vehicle. More refined figures.
February 2022
We are further improving the system. We are planning exact vehicle departure times for the automated concierge. We are eliminating paper orders and delays at the triggered barrier.
Surprising findings
The losses are uncomfortably large
The main reason is traffic emergencies. Another part of the overtaking is caused by drivers who forget to fill up in time and look for a petrol station with a toast on the back of their car. Now the client can intervene.
+ 3%
extra journeys against the plan
+ 20 500km/year
extra mileage against the plan
+ 290 800CZK/year
more costs against the plan
Determine the minimum profitable order volume and frequency of shipments
Dispatchers have the option of advanced route simulation. They will know where to efficiently send their own cars, an external carrier or dedicated competing smokers. They can play with parameters and compare alternatives. For each customer, they can decide whether to:
- will reduce the frequency of the haul,
- increase the minimum order value,
- increase the price of the goods,
- order cheaper external shipping, or
- cancel the contract.
Recognising the real impact of fuel price increases on product prices
The sharp fluctuations in fuel prices after the outbreak of the war in Ukraine became an excuse to increase the price of the products the client was buying to replenish its portfolio. Our analyses have shown that the actual impact of fuel prices on product prices is much smaller than manufacturers declare. The client was given the opportunity to calculate the actual prices and dispute the exorbitant prices.
How does the new system work
The day before delivery: planning
- The dispatcher optimises the distribution of orders and the flow of the route.
- It sends KAM notifications to drivers when and where they will go.
Delivery day: foreclosure
- The drivers load the goods as planned and set off on their route.
- The system checks and records the time of departure, the order and time of unloading, the position of the vehicle and its position in relation to the plan.
The day after: check
- We download records of vehicle positions and refuelling, record actual route distance and journey time.
- We calculate the actual transport costs according to the actual distance travelled.
- We compare the planned and actual weight and quantity of goods delivered.
- We generate management reports.
No more guessing!
The client knows the price for shipping each kilo of product. He can calculate the profitability of the route, the order and the customer.
"Our cooperation with Solvertech has opened up new opportunities and helped us to strengthen our position in the market. Thanks to innovation, we can continue doing what we do best - bringing the best of Wallachian cuisine to our customers' tables."
Karel Pilcik
owner of MP Krásno, a. s.