Konex

Konex

Konex is one of Ukraine's largest pharmaceutical companies. Its pharmacy chain operates in the Vinnytsia, Khmelnytskyi, Chernivtsi, Cherkasy, Kirovohrad, Zhytomyr, Ivano-Frankivsk, Kyiv, Rivne, Ternopil, and Odesa regions. Its main areas of activity are wholesale and retail trade in medicines, its own production of herbal products, construction, and rental of premises.
1200
employees
200
pharmacies
25
years on the market
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Project background

01
High transportation costs due to inefficient route planning.
02
Lack of clear analytics on unprofitable routes.
03
Limited control over carriers (hired transport).
04
Difficulties in tracking delivery performance and analyzing actual transport movements.
05
The lengthy process of adjusting routes, which led to delays.

Project goals

Plan routes for local delivery of orders from warehouses to their final destination in order to reduce discrepancies in mileage payments between the carrier and the company.
Use up-to-date road maps and take all restrictions into account when planning routes.
Optimize the use of motor vehicles and reduce transportation costs.
Improve the effectiveness of monitoring the timely delivery of products to customers and the execution of the route as a whole.
Get comprehensive and flexible analytics on indicators (costs, timeliness, consistency, etc.).

Project progress

The implementation of the ABM Rinkai TMS took place from February through September 2023.

01
Preparation for TMS implementation

A survey was conducted among the company’s management, as well as the heads of the transport and warehousing, commercial, and IT departments. Based on the results, an analysis of all business processes was carried out and recommendations for their improvement were provided. KPIs were recommended for evaluating the effectiveness of transport logistics. In addition, technical specifications were developed for data exchange between the client’s accounting system and ABM Rinkai TMS.

02
Integration with the accounting system

Automatic data exchange with the Customer’s accounting system was implemented in accordance with the technical specifications. The transfer of necessary data from GPS equipment for both owned and leased vehicles was ensured, and automatic downloading of information from the GPS tracking system was implemented. At the same time, information was provided on warehouses, delivery points, and vehicles used by the company. The stage was completed with testing of data exchange with the Customer’s information system.

03
Implementation of TMS

Users were trained on the ABM Rinkai transport management system. Existing routes were recreated to ensure the system was configured correctly. Since a hired fleet was used at the start of the project, the customer did not have access to actual GPS data. The project was launched without this data, and the system was successfully configured based solely on planned route recreations. Users were assisted in creating their first routes in Rinkai, after which the pilot use of the system began. Training was also provided on working with the reporting module built into the TMS.

04
Scaling

The project was successfully launched at the warehouse in Vinnytsia. Planning for all Konex delivery points is carried out centrally.

05
Adding new warehouses to the system

Results of implementation
ABM TMS

Results obtained for Konex:
Reduction in weekly mileage by 2,000 km
12 %
Reduction in delivery costs
25 %
Improving logistics efficiency in terms of time
Reduction in fuel costs and vehicle depreciation
Quality results
  • The ability to analyze unprofitable settlements and process them effectively.

  • Real-time tracking of planned routes.

  • Reduction of driver abuse thanks to a mobile portal with up-to-date routes and GPS monitoring.

  • Transparency in cooperation with hired transport: complete control over delivery performance.

  • Ability to navigate to route points through integration with mapping services.

  • Access to photos of retail outlets, which simplifies orientation and adaptation for new drivers.

  • Extended functionality for picking up cargoes with weight, volume, time, comments, and geolocation details.

Customer review

Taras Oleksiuk
Executive Director
I will definitely recommend you as a vendor to my colleagues. Great support and a team that was very easy to work with. So far, the experience has been nothing but positive. We implemented it, skimmed the cream off the top, realized that we had already earned our money, and are now optimizing further, because without development, we won't get very far.

Video review

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FAQ

Is it possible to implement the system if the company uses contracted (outsourced) transportation rather than its own fleet?

Yes, ABM Rinkai TMS allows you to monitor delivery performance even with contracted carriers. At Konex, the system was initially implemented specifically for a contracted fleet — without access to actual GPS data — and was configured based on planned routes; subsequently, it provided full control and transparency in cooperation with carriers.

Does the system help identify unprofitable delivery routes or locations?

Yes, the built-in analytics module allows you to analyze the profitability of deliveries by route. At Konex, this has made it possible to identify unprofitable locations and make decisions on how to handle them more efficiently.

How does the system help resolve discrepancies in mileage payments to carriers?

The system calculates planned routes based on up-to-date road maps, taking all restrictions into account, which provides an objective basis for comparison with the carrier’s actual mileage. At Konex, this became one of the project’s key goals — to reduce discrepancies in mileage payments between the carrier and the company.

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