Problem points
Project progress
We familiarized ourselves with the Coca-Cola HBC model, entered the geo-coordinates of delivery points and customer time windows into the system. We found a problem with contractor billing.
Based on the previously entered data, we recreated the routes. We calculated different payment models (tariffing) using the system. We confirmed that payment for mileage is more profitable than payment for tonnage. We used the average price per kilometer as a basis and compared it with the existing payment for tonnage (liters of transported products).
Coca-Cola HBC negotiated with contractors and renegotiated the contract for a new charging model (per km). We started implementing and using ABM Rinkai TMS.
Results of implementation
ABM TMS
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We changed the system of payment for the use of the hired fleet: instead of paying for each liter of product delivered, we switched to a fee per 1 km. As a result, this allowed us to cut delivery costs while sales grew by 7%.
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FAQ
Can the system help justify a transition to a different pricing model with carriers (for example, from payment per metric ton to payment per kilometer)?
Yes, the system allows you to calculate and compare different payment models based on actual route data. For Coca-Cola HBC, it was precisely through ABM Rinkai TMS that they determined that payment per kilometer is more cost-effective than payment per metric ton—which served as the basis for revising contracts with contractors.
Is the impact of implementation noticeable even as the company’s sales volumes are growing?
Yes, the impact remains even as sales grow. At Coca-Cola HBC, delivery costs decreased by 14% even as sales volumes grew by 7%, and the cost of delivering 1 kg of product fell by 17%.
Can the system be used if a company operates exclusively with a leased (outsourced) fleet, without its own vehicles?
Yes, ABM Rinkai TMS works just as effectively with a 100% leased fleet. At Coca-Cola HBC, the entire fleet was leased, and the system was used primarily to monitor mileage and justify a change in the pricing model with carriers.