Enhanced route planning for the order delivery using SAP TM secures unprecedented level of customer service at Vostok-Zapad

Enhanced route planning for the order delivery using SAP TM secures unprecedented level of customer service at Vostok-Zapad.


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The Vostok-Zapad company conducts sales in two directions: food products for enterprises of the HoReCa segment and ingredients for the confectionery industry. This largest supplier of products in Eastern Europe makes more than 2.5 thousand deliveries daily. Among the company's customers are well-known restaurants and hotels, pastry shops and bakeries operating throughout Russia.

Improving the level of delivery service.


The process of planning delivery routes, automated by only 20%, was time-consuming and sometimes lasted 5-6 hours: the employee manually marked the points of orders on the map, assigned a car, chose a driver, etc.

During periods of peak load, the automation system could not cope with data processing, which led to significant timing violations, and delays in issuing waybills amounted to 4 hours. As a result, customers did not receive products on time, and sometimes supply disruptions occurred.

The management set the task to optimize the route planning process, minimizing the impact of the human factor. Since we already had experience with SAP ERP, the SAP Transportation Management module of transport logistics was chosen as a route planning automation tool.

The implementation was done according to the standard scheme. The initiative came from above, so from the very beginning the project was supported by the leaders of the company. At the first stages, employees showed a low-key reaction to the changes, but the more they recognized the advantages of the product, the more actively they showed interest in the new tool.

Reduction in the number of planners
Increase in the level of delivery service

The process of planning urban delivery routes is centralized: instead of the previous planning services, a single service now operates in each distribution center. This allowed us to properly perform KPI´s according to the level of delivery service.
Timing routing is launched with the click of a button, and all route options are pre-configured. About 10 profiles for distribution centers have been implemented, as well as 5 “waves” of planning — with and without traffic jams. The employee must only choose the desired profile. The process lasts from 5 to 60 minutes, depending on the "waves" of planning and the number of orders. Given all iterations, its duration is 3-4 hours.
Routing is 95% automated, while the preparation of master data (fleet, outlets, geolocation data collection) has been greatly simplified.
Thanks to the centralization of delivery planning and the elimination of the human factor, it was possible to get rid of overloading vehicles, which reduced the cost of their repair and depreciation.
The main data was put in order: delivery address, convenient time for the client to receive the goods, access roads, duration of unloading, etc.
Planning the time of arrival at the facility has become much more accurate. As a result, the level of service increased by more than 2%, which increased the loyalty of the partners of the company.

Alexander Dovgy

«The implementation of a pre-configured solution based on SAP TM, capable of working for months without changes, significantly reduced the dependency of our activities on the influence of the human factor».
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