2. Russian Federation overview
Population 143 MM
Area 17mm sq.km = (1/8) of all the Earth
160 ethnic groups speak about 100 languages
137 million people speak Russian
3. European and Asian Parts
Km 1000 2000 3000 4000 5000 6000 7000
Days 4 8 12 16 20 24 28
Saint-Petersburg
Up to 3 days delivery Up to 8 days delivery Up to 40 days delivery
Ekaterinburg
Moscow
Novosibirsk
Irkutsk
Khabarovsk
Vladivostok
73% Urban, highly educated
13 cities with population over 1 Mio (only 4 of them in Asian part of the country)
6. Why we decided to implement professional TMS?
• Significant Business Volume Growth didn’t allowed us to manage logistic operations manually or in
home-made systems
• We were looking for intensive way of planning and execution of operations in horizon > 1 week
• Carriers’ level of development didn’t allow us to outsource operational tasks - lack of trucks on Russian
Transport Market and flexible transport policies of our competitors – led us to necessity of:
– Increasing truck availability for transport execution on the planning horizon more than 1 week
– Maximizing truck utilization
– Proper warehouse gate management to control transport demurrage at the warehouse
– Decreasing “Dead Miles” and number of one-way routes for every truck
• We needed full visibility of all logistics processes on every stage of the execution on the daily basis
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7. Business Goals
Compliance with the needs of a growing business
To increase transport availability for Kraft Foods
Maximization of truck utilization
To manage workload of the warehouses to prevent demurrages
To have full visibility and transparency of all logistics processes at all
stages of execution on a daily basis
Automatic consolidation of orders to increase the intensity of transport
usage
Optimal routing considering customers’ specific requirements
To minimize employees workload for daily operations
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8. Full coverage of logistics processes
Products Master Data
Master Data Vendors, Customers, Logistics Providers Master Data
Synchronization
Orders integration with ERP system
Order Management
Orders Consolidation
Automatic truck type choice
Optimal route planning considering customers requirements and working
Shipments Planning hours
Warehouse gate management
Online Tendering in OTM and automatic notifications by email
Cooperation with All operational transportation reports and legacy forms are printed from OTM
3PLs
Each participant enters main control points of shipment execution in online
mode
Kraft Foods employees are able to check what is happening with the orders at any
Shipment Execution
time
Carriers can check shipment cost at tender stage
Cost issues of are solved at the stage of shipment coordination/execution, not after
Finance
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9. The complete cycle of transport logistics:
international inbound, national inbound and
outbound
International
Inbound Logistics
Kraft Foods Plants in Europe
National Inbound National Inbound Logistics
Logistics
Outbound logistics
Kraft Foods Plants in Russia Central Warehouses Regional Warehouses
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10. Import, export and customs
• Transportation planning considering of customs operations
• A complete picture of costs: transportation, customs fees,
brokerage and storage in bonded warehouses
• Tracking the status of customs clearance
• Online access to legacy documents scan copies
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11. Well-established communications across the
supply chain
• Full visibility of shipment status in key points
• Online access to information about the current status of the
shipment and delivery
• Rapid response to changes from Kraft side
• Notifications of significant changes by the email
• The necessary information to all the participants for the right
decision-making
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12. Accurate palletizing - optimum loading
• Calculation of full standard pallets and pallets with customers’
height restrictions
• Calculation of mixed pallets
• Truck loading optimization considering pallet sizes and
equipment sizes
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13. Autoinvocing - simplicity, transparency and trust
• Proper rate records management helps to keep the actual
cost of each shipment
• Most of orders are processed automatically in Bulk Plan
mode
• The cost of transportation services for the period consolidated
and billed by transportation companies
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14. Business Results
• System Geography:
− 15 international plants
− 5 local plants
− 4 Warehouses
− 2 Copacking Manufactures
− 3 Contract Manufactures
− ~ 30 Carriers
− ~150 users
• The harmonization process of transport, customs clearance, factories, warehouses
:
– Stability and transparency in logistics operations
– The distribution of shipments over time, depending on the load of the warehouse on a particular date
– Reduction of logistics costs in connection with the choice of the optimal route and the carrier
– Ability to track key operational KPI
• Automatization of operations to reduce transportation and operational costs
– Automatic split of shipments among the carriers
– Truck Loading optimization
– Routes optimization
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15. Business benefits are:
• Harmonization of transport, customs brokers, factories, 3PL WHS’s , and CDP’s
operations and processes:
– Workload optimization
– Stability in operations
– Visibility of all LO processes
– Improve of scheduling at 3PL WHS’s (including inbound, outbound, picking operations
and gates/docks management) due to smooth volume split within 24 hours
• Opportunity of demurrage decrease at loading/unloading locations
• Returns management
• Opportunities of future overhead reduction
• Transparent KPI monitoring for better collaboration with LSP (DC, Transport
companies and customs brokers)
