Webinar: Unlocking ROI from TMS implementation: Boost Employee Performance and Productivity
Last-mile delivery can represent 60% of total logistics costs, compared with 40% for the preceding international transportation stage, making local distribution a prime target for optimization.
The speakers compare basic, cloud-based and enterprise TMS options, noting that enterprise solutions can cost about five times as much as software-as-a-service alternatives.
They explain how automated planning, digital document exchange, analytics and real-time vehicle control can reduce manual work while improving delivery reliability.
The implementation guidance covers staff training, resistance management and performance incentives, followed by a Rinkai TMS demonstration that plans routes for nine vehicles in seconds and compares planned mileage with GPS data.
thank you everyone for joining us uh while we wait for everyone to join let's start talking about us the company and about us as speakers so uh the main topic of our webinar today is going to be a Roy of T implementation impact St performance and productivity we're going to talk today specifically about optimization of plma delivery and our speak is going to take a deeper analysis of uh how we can um basically optimize LMA delivery logistic uh let's start with the introductions of who we are um the speakers of our webinar uh Alex Sher he is a CEO of Le K uh he has extensive implementation uh experience uh more than 80 projects in his broad experience of working in this sphere uh so he's going to today uh tell you more specific examples of which products he already implemented uh
because he did a lot of that uh also another speaker is Andrew Von he is a senior project manager and he was engaged in the implementation of large projects and today he will share with you more technical experience and he going to talk specifically about technical part of optimization of plma delivery and me myself julan Garcia I'm a commercial executive at Lea M Kai uh and today we're going to talk briefly about it itself um so thank you everyone for joining us uh me and my team Alex and Andrew we gonna bruise you together and we're gonna try to all our best for you to understand more this specific topic uh before we're moving forward to discuss the Royal flation that TS I just want to tell a bit about our company what we do who we are what we do and Etc uh let's talk about um in which sphere we basically work um we have many years of working experience in creating softwares for
optimizing uh different stages throughout all supply chain uh today we're going to talk specifically about optimization of tracor logistic but also we have many different other projects the products we're going to talk about it later bit but let's look into our ecography and the demount of countries that we work in we have really extensive cardiography we work in different continents in different languages different cultures uh and we have more than 120 employees 15 years of experience and more than 200 um implemented projects here you can get acquinted with all products that we have uh first of all uh apart from transportation management we have h four different systems which help also optimize resale processes inventory optimization assortment automatization Shel and customer loyal loyalty uh you can familiarize with all uh products on the website and get aced in more details with all of them if it's uh needed for you you can basically get into our
website it's going to be in the chat uh and uh get acquainted with that in more details but today we're going to talk specifically about transportation management and optimization of Transport by itself uh this is our customers uh as you can see we work in a really broad amount of Industries we work in groceries Gass and oil Health Beauty Pharma and Etc you can see here a really popular companies and its logos uh you can just get aced also in our website and see which with which companies we work together uh but let's move forward to the main topic of our webinar uh and what we're going to discuss uh today so um in this webinar we would like to talk in more details about lastma logistic and why is the most expensive stage in the entire supply chain um let's analyze this problem in more details and then we can talk about
the solutions that exist to solve these problems uh let's imagine an avocado that goes to us from some tropical country to the European content to one country to a specific client um their corresponding first step uh is a kind of barge uh on which thousand of tons of these same avocados are loaded yes the barge is expensive and the price can reach several thousand EUR for this shipment but at the same time it carries a large amount of goods so accordingly one avoc cata will cost a couple of tents which is not really expensive comparing with the amount of um money which is paid for shipment and the amount of AATA which is going to be shipped um then um when the goods already on the mainland delivery is already carried out by large trucks you can see it here uh it's um delivered to large warehouses distribution centers and Etc again trucks they are really expensive uh and they travel long
distance but they again carry a large number of avocados so the price per avocado is not really still expensive there is the longest period this International shipment from tropical country to the mainland it's uh taking about 40% of their entire logistic cost so it's not that expensive and here we are approaching the last stage of our entire uh delivery chain uh this is a delivery of The Last Mile when we need to take avocados from the distribution centers or large warehouses directly to small quantities of avocados in small locations of stores in uh specific country and one unit of the product starts to be extremely expensive because taken by a whole car whole vehicle a specific driver and it deliver to each client with a small quantity so according to statistics the last mile of delivery takes 60% of the cost of the entire delivery uh and you can see the here in the slides in the graph uh how
important is to optimize and reduce the costs for the lastma delivery specifically because it takes 0% of the entire logistic processes uh so that's why last my delivery is extremely expensive comparing with uh all previous steps of delivery in logistics uh the next thing that I want to say about the last my logistic is that this most expensive and needs to be optimized but what can be the problems if we are going to optimize uh the last my delivery uh usually this problems of the opati um itself because we can face a huge number of problems I think uh every company faced these problems in one way or another during processis of uh making optimization uh so uh why is it so difficult to optimize last my delivery first of all uh there can be some problems such as limitations of the warehouse shipping Zone and Etc shortage of ramps for loading cars Etc so um a
lot of companies face these issues and it is really important to know how to solve them uh another problem for example it can be the Thousand supporters per day of delivery uh and we have only certain amount of cars and the question arises of how to distribute all these orders these thousand orders to all cars in the most efficient way first of all to use the least amount of transport and to build such roads in which the mileage will not uh be a large but efficient at the same time also another problem might be the specificy of the delivery point because they are ofation when it can be difficult to get to the delivery point it's difficult to find delivery point uh and this is ra first of all the difficulties and delays during the delivery which also decrease the customer service which is important to uh get in touch with um also another problem is the different dimensions of the uh Vehicles because each car can have its own specific nuances which uh
manual planning simply cannot take into consideration it's also can be a problem which can arise during the optimization of plma delivery another problem is that conditions of goods Transportation are also a problem especially if someone is specifically engaged in the delivery of Express or manufacturing products uh Fresh Products uh they constantly face the problem of temperature control which cannot be done without special tools and these tools can help to optimize and control this temperature delivery process as well uh furthermore um another problems can be road restrictions it is difficult to plan and delivery with all road restrictions because it happens that many roads are closed or under repair and this nuances also create delays in prod ofct delivery uh and last but not least uh the problem is that um It's Time Windows time Windows is really important problem right now because in recent years customer service has begun to improve
significantly and time limits are becoming very popular because it's better of course to order a product and know exactly when it will arrive than to see the hop of the day at home and wait for delivery so uh you should always be careful and aware about the delivery time and remember that delivering on time is now in a really high demand so all these problems that I uh mentioned before uh is really constant problem in every company in every corporation and it's really well known unfortunately uh that is why in order to overcome all these difficulties and optimize the loss my delivery uh it is uh really important to uh optimize all this processes with special tools uh such as a transport management system about which we're going to talk today uh and this uh transfer management system Focus precisely on solving all these problems that I mentioned before so Alex gonna um have he he prepared a future analysis of
all transit management system in the market and since he has a lot experience um working experience in uh this sphere he's gonna talk right now a bit in more details about all system that are on the market so so um let me share my screen yeah actually as you mentioned uh really the transport management system is some kind of solution to optimize The Last Mile not only optimize Last Mile but all the transport management is about the transport Management Systems actually uh it depends on uh the scale of your problem and scale of your business process in transport uh and the complexity of what issues do you have so typically we divide like three bunch of TMS systems
it's like the basics one uh Some Cloud solution like system as a services that supplies for some uh company uh from the vendors and Enterprise Solutions actually the target uh for all of this typical TMS is different but uh they're not equal definitely yeah so what is the difference between basic one and for example Enterprise it's like the huge space between them uh the basic TMS can solve some protein problems uh they can handle some simple uh tracking of the statuses and um for like simple processes it's more than enough so you shouldn't spend a lot of money to get some Enterprise or high-end Solutions
because you will not get such a value from these extra costs uh typically uh you can get it like or for free or temporary for free or for some very little costs and use it if your Fleet is like not so big so if you have a couple of vehicles maybe 10 of them it's more than enough if you don't have some specific needs uh but anyway uh it it is need somebody who will implement it yes uh the cloud systems or system as Services providing you more different tools and more powerful tools but they're more expensive uh they really are very competitive with Enterprise Solutions but typically they're solving some specific Niche into your transport uh management yeah for example
it could be some solution for Last Mile it could be some solutions for uh International Transportation or for uh full tracks it is some specific solution for one Niche if we will combine it together then we will get something that we called Enterprise Solutions uh that already contains uh some tools to manage all the chain with multimodal transportation Fleet Maintenance with yard management etc etc but it is really more expensive so it is a factor of like five more expensive than system as a services but um the system of um the system as a Services is like the golden middle thing yeah so it have the
Simplicity of the basics TMS the maybe it's not so cheap but they're really cheaper than Enterprise but they have uh the same um efficiency in solving uh the problems as an Enterprise in certain segment so what are they um second uh We've prepared some just second typical uh some solutions that can show you what we situate to the basic one is like Road for me it's very simple you can pay like 40 or $50 per months and you will manage like five vehicles or maybe six 10 of them or they have like maximum is like $300 and you will have more than 30 vehicles but there is simple tools and they making their job uh good if you
have some simple tasks the next one is vone uh you know that's like more telematic platform but they develop their own tool to uh hold on the transport management it is free if you already use the violon uh that is why um it also like a basic one and my road online similar as as wrote for me it works the same it's just a competi uh the cloud systems we have uh the ring kite TMS uh it is the SAS solution for optimizing and uh for last mile delivery uh roic uh Optima Road Max optra fari all of them solving the last mild delivery problem and if we're switching to Enterprise actually yeah we have like Monsters like sap uh we have
the blue yonder Mercury gate and ortech uh there is not uh actually a need for any company to choose like one of them uh we know know the cases when companies uh combine two solutions to get the benefits from both of them so for example uh Coca-Cola company in Czech Republic they use use ortex system to manage their uh full tracks and they use rinkai TMs to manage their last mile delivery because it's bring more benefits and it very very coste effective approach so uh what does really TMS covers uh what is the benefits you will get if you implement such one in your businesses or in your processes first of all it's uh like reducing the number of
vehicles it is equal the number of drivers yeah so you don't have to maintain all of this stuff or all of this uh vehicles uh then it reduce the logistics cost because your roads become shorter it's more optimal and if you like need less vehicle yeah probably uh the usage of every vehicle become bigger but uh totally it's like less miles less uh carbon fingerprint and and so uh also the TMS uh allow you to improve the services now we are everybody about the services yeah about uh what is the market share will be if we will provide some additional benefits for our clients yeah time to time it's dramatically
change the situations some type of services as using time window some special uh temperature conditions and so on uh be for example uh on specific time in certain place right in time never get late and etc etc could be the GameChanger in your business uh the TMS provides you the tools to maintain all of this on High level and uh the next but not least uh the Automation and Improvement of control quality so uh it means that you spend less time and less efforts to uh do the process go and you also spend less resources to control that they works fine uh typically it's bring you to the situation when you need or less people
or you can uh be very very scalable with your businesses and uh the last in here yeah but probably it's also important the justification of real pricing for the carriers and your customers uh the TMS provides you uh the real uh Vision what kind of cost you could have yeah what is the optimal one and if you will have some few carriers yeah you uh renting the fleet from so the in this case the TMS will choose one of these three who are the most efficient on certain Road and give this road to this carrier some another road could be delivered to another carrier because in that kind of delivery this one could be more effective uh it is fair not only
for your budget but for the customer and it's maintained the market law uh in your businesses uh but anyway uh this is the things that will be after you will implement this solution into your business processes and this is very very tricky and unpredictable process uh so to provide the high quality project you need somebody uh with high expertise who will do this and that's why I'm giving say to Andrew he will tell you how is it going in in implementation and how to do it more efficient uh with low risk and high impact hi everyone let me share my
screen so okay do you see my screen guys yes okay thank you so how the implementation of uh TMS can affect the work processes and kpis of logisticians and drivers uh the first thing I want to talk about is a planning process automation it's all about automation TMS helps you to manage and optimize the routine of vehicles and avoid extra mileage traffic Gams and other kind of delays as well as to reduce the number of vehicles and drivers on the road that is very important nowadays uh surely it significantly reduces planning time for logistician so he can uh be more productive the second thing is we already have implemented functionality for the digital document exchange between TMS and Erp or third party if you required so this process is also transparent and visible at all the steps so it simplifies the document processing and reduces the human
factor uh thirdly it's about reporting and analytics ATMs provides a capabilities for data analysis and Reporting on performance resource utilization and much more this helps logisticians and manager understand efficiency issues and and identify areas for uh process Improvement and the last thing is Advanced route control uh because TMS provides you real time information about the location of the vehicles and it helps logisticians to better control the each movement of vehicle this allows you to react for for example and planed delays and pro and Problems by adjusting the roots or providing brief instructions to your drivers th the accuracy and reliability of deliveries increases so customers may be notified of roote changes or estimated arrival times uh that making the delivery process more transparent and uh giv you more control so let's summarize the implementing of TMS can improve
Logistics and Driver workflows reduce costs increase productivity and improve service quality however to successfully implemented TMS it is necessary to provide the training to staff ensure adaptation to the new system and create processes to Monitor and evaluate its Effectiveness so here you may see some extra benefits of using a TMS for dynamic routing uh firstly it's about simulation of sorry firstly it's about simulation of uh planning and risk detection uh so uh it allows you to simulate delivery planning based on various scenario that only you can imagine such as arrival of an increased number of orders changing in priorities for example time Windows uh delays due to unforeseen events reduction of stuff uh delayed departure or for example bad weather condition when speed uh on the road are definitely slower than regular so we have take it into account uh so simulating all of these conditions help you to identify uh potential risks and
look forward to minimize their impact the next one is quick adaptation for the new drivers uh TMS provides accurate and optimized Roots which helps reduce driving time and such risk as violations of the stop sequence late arrival and so on drivers can also quickly receive information about orders change in rots uh which contributes to better communication and orientation in World delivery process uh the second thing is Advanced data analytics so it's important to visualize data to understand patterns and Trends graph charts interactive reports help uh display data in more clear way on the basis of data analyes strategic decisions can be made regarding the pricing of logistics processes Improvement of customer service and so on uh also we will talk about increasing of the uh level of competitiveness through a focus on service quality this is due to the fact that the work of logistician BEC more analytical rather
than operational uh also it's transparent work with hired vehicles and carriers because TMS can automate the processes of calculation and reimbursements to contractors which promotes fair and transparent Financial interaction tmls also provides you the ability to generate reports and analyze data data on the performance and efficiency of contractors and the last one it's all about environment Dynamic routing can help to reduce mileage and fuel consumption this contributes to reducing greenhouse gas emissions and promoting a more green way of resource using but unfortunately not all the time everything going as planed and you also May face with sabotage um we we can uh provide you three methods the first one is known as stick and carrot it means uh that strategy can be effective in motivating drivers and stuff uh like with carrots
uh maybe various uh incentives are offered such as bonuses salary uh salary in increases uh gifts or other benefits and with the scks it's like disciplinary measures finds uh strict rules and restrictions it's important to balance both approaches so uh that they are fair and relevant to the specific circumstance encouragement and uh punishment should be objective and fair so drivers must see that the rules are applied equally to everyone the next one it's competition or a challenge is an effective way to motivate drivers uh and improve their product activity and performance challenge between drivers stimulates a competitive spirit and can lead to improve their delivery results so you have to set specific goals and performance metrics the drivers must achieve this could be the number of U on time deliveries for example increased customer service speed uh compliance with sequence or other your K
matrics and the last one is radical methods I call it like firing and hiring uh this method uh can be used in cases where drivers do not fulfill their duties or violate the company rules and standards standards uh and the decision to fire should be fair and objective so in general it is important to consider the specific circumstances and culture of your company when choosing approach to addressing the problem of sabotage communication and understanding with staff is a key as well as a balanced use of keratin stick to achieve successful implementation of TMS thank you I hand over to Alex microphone sorry um second share the extension
of our presentation so let's make some short conclusion for now for this moment uh actually what are the benefits of implementing TMS uh obviously this is the structured data because we saw a lot of cases when uh we find out that some garbage in your data uh can cause a lot of problems in the future not only for transport management but for accounting process analytical things and etc etc so in this case you have the digitalized process that generates quality data uh and uh it's maintained the quality of this data from one hand from another hand it is structured so you don't have every very important piece of information in the comments of the order
or in the comments of the road in the comments of your client so you put it in the right places in the right format and this will allow you to build more uh resilient structure of your uh analytical tools of your other Digital Services to provide the uh Improvement of the processes the second uh is the quick feedback it means that uh there is less of people that take place in this chain to find out what's going on right now with your Logistics what's going on with your cost what's going on with your services uh how many orders was was delivered right in time everything of this you can know right now now uh so it's like online
mode and it speed up the solving of every issue you face with uh during the process uh it's very important because uh all these data as it all previously generated by some sensors by some digital systems etc etc so there is less point for any mistakes when you typ in something uh as human do uh the third one is unification and centralization it's about your architecture of the company processes of way you're doing the business uh unified and centralized or decentralized but unified processes allow you to be very very scalable on the market so if you want to get some another area to
distribute your services to distribute your goods and make the delivery you can do it very very fast because you have a typical processes they very well done and they work if you have some High season and low season the DMS allow you to adapt your resources to this increasing or decreasing of your needs uh it's very very efficient tool and uh the analytics and kpis uh all these digital stuff make you uh very uh in a lot of information yeah to use when you uh get some decisions it's very important not to be blind yeah when you uh get some decision and if you uh know the real parameters of your
processes you can have the greatest chance to get the right decision that will uh enhance your business yeah that will not destroy uh and this is uh like this is the typical benefits here that I like to highlight there is a lot of a lot more of them yeah they're teeny one but these details uh means a lot actually like modeling and Etc but now I like to switch to demo and show you how it good works actually yeah because it's very very important to understand how the things go in real life second um share my
screen so here is uh the transport management system called rinkai uh we use it and provide it on the market we suppose it's one of the best uh or maybe the best uh system as a service uh to uh manage the last mile delivery how it works actually we have the certain amount of locations that need to be delivered uh all these location have the different time Windows uh the city uh the number of kilograms that need to be delivered uh something we can get back if we need yeah uh the system automatically calculate the number of time to load and unload on the location we have list of vehicles with uh certain cost parameters in each yeah that is how system make a decision which
vehicle we need and where it should go because it's not only about the capacity it's also about the cost it also about the time limits and etc etc uh then we go to the planning simply hit the button optimize and Magic gone yeah so here we have already done roads for night nine Vehicles it take just couple of seconds yeah for each vehicle we have the number of stops or location that should be visited the start time it's already balanced with our Depot capacity so we know how many loading Gates we have at once and which vehicle we have to put first secondly and Etc yeah to load uh uh to be right in time to the client so here you can see this is this
purple one is like the visualization of time window of the client yeah and the uh so as you can see uh the width of this red line is different because system calculates the number of seconds for loading yeah that's the first point and second that in every road it fit a window it's independently at how small is this the system plan to be quality of servicing your client uh the second thing we need to know how is this going in real life because that's just a planning yeah we could make the ideal roads but if the
driver will decide to drive it another way he will be late yeah actually and our ideal roads will be um will be nothing so we go to uh our plans and switch to the GPS in this case we can uh grab the data from the sources that connected to the vehicle uh and compare it automatically with the plan so what we can see here is some vehicle yeah and we have the planned number of kilometers like 470 and the difference with the actual is only 2 kilometers for almost 500 kilometers the difference is only to its like zero percentage Yeah uh uh what we have else so we have the clients and we have the same time window but in this case this is the actual stop so the real
time when vehicle was there uh also what we have here the logist can understand what is the delay for now of processing this road so we see that the driver is laid for 20 SEC 26 minutes uh but it's okay yeah the other thing uh the system show you the could be late yeah but in this case uh it was marked by the system it and they were late in reality so our uh forecast was exact what else we uh we can look on the map how how the road uh was this one the blue one is how it plans to be and the red one how it was in reality so we see that somewhere the drivers go around
yeah somewhere they like goes around too much yeah but probably that's okay and in this case we see that it was planned 55 kilm and the driver provides you 15 kilometers more so for every every piece of data here it is possible to analyze to export import and addit to the analytics we also have the analytical model but uh we like have lack of time so I prefer if you're interested you can s the screenshots on our website or you can uh ask us to manage a meeting to present you all the system it's a lot a lot of very useful information there that you can grab just using a single click but I think it's pretty all from our side in case of any questions again
don't hesitate to contact us and for once more time it was very interesting topic for us for our team and we have really high purchase in this and we can share some additional information if you have some specific questions specifically on your processes business processes and also in our chat you can see um some additional information our website LinkedIn profile and Etc so you can follow us and follow any views that we have in our company in this case so if you I can see any questions in the chat uh so we're GNA wait for you on our website thank you for joining us it was a pleasure to have webinar for you
Key takeaways
Chapters
Quotes
“According to statistics, the last mile of delivery takes 60% of the cost of the entire delivery.” — Juliana García
“The work of the logistician becomes more analytical rather than operational.” — Andrew Ivanson
“Unified and centralized—or decentralized but unified—processes allow you to be very, very scalable on the market.” — Alex Shire