DPDgroup subsidiary Speedy has reduced its overall costs by an estimated 7-9% as a result of the successful implementation of Transmetrics’ predictive analytics solution.
Speedy handles over 16m packages annually with a network of 700 vehicles and 10 major hubs. Prior to working with Transmetrics, the company faced challenges with capacity planning for their own assets as well as for 3rd party providers, as a result of the company’s high rate of growth and seasonal fluctuations in business volumes. The Transmetrics solution now enables Speedy to use IT for planning decisions and to increase operating resilience.
“With the Transmetrics’ application, the benefits are very visible. Before [using Transmetrics solution], the rate of fleet utilization was 72%, currently we have above 82% [utilization] and we are expecting this to increase. We estimate the total cost reduction at 7-9% and it is a pretty good result for us,” states Danail Danailov, Board Member, Speedy.
“Before working with Transmetrics we were struggling to increase our network efficiency,” says Alexander Petkov, Director of Operations and Board Member, Speedy. “We are impressed by the improvements delivered by the Transmetrics platform, which were both immediate and quantifiable. Using Transmetrics` reporting system, we can measure the efficiency of our fleet and set correct KPIs for our warehouse team.”
“We have also been able to drastically improve our pricing accuracy with Transmetrics’ tools thanks to the ability to now accurately measure the delivery cost of each parcel,” continues Petkov. “This has enabled us to identify low or negative margin customers and adjust our pricing accordingly. The implementation was easy and support from the Transmetrics team is always excellent. We encourage other divisions within DPD to implement the solution.”
“DPDgroup is among Europe’s most dynamic and forward-looking logistics companies,” adds Anna Shaposhnikova, Co-Founder and CCO of Transmetrics. “We are very happy to see the results Speedy has already achieved by using Transmetrics and we are confident there will be even greater improvements to come for their operations. Transmetrics is dedicated to expanding our relationship with DPDgroup to further build on this success.”
Source: Transmetrics
