Hospitality Intelligent Supply Chain

Background

  • Our client is a renowned F&B group running various brands in Hong Kong, from fine dining , to fast food restaurants, as well as bakery shops and coffeehouses
  • Tradelink provided our TMS solution to the F&B group to schedule its daily deliveries of fresh and temperature controlled food items to over 500 outlets in Hong Kong and to manage the performance of third-party logistics companies (3PLs) responsible for the delivery

Challenges

  • To ensure on-time and accurate daily deliveries of different kinds of fresh and temperature-controlled food items to over 500 drop points has been a huge challenge
  • To assign delivery routes manually was a time consuming and error-prone task
  • Due to the lack of information on fleet utilisation, product monitoring and traceability, the group had no control and visibility over delivery operations thus had to count on 3PLs' arrangements
  • Had to spend plenty of time and administration work on delivery charges billing to ensure the correctness of 3PLs charging

Solutions

  • Powered by data analytics, our TMS auto assigns the most efficient delivery route based on pre-defined factors such as product volume, temperature requirement, shop locations and opening hours, delivery time limit and traffic conditions
  • To learn from drivers' practical experience based on actual road conditions, the system uses Artificial Intelligence to analyse and compare the system suggested routes with the actual routes used by drivers and apply the logics where appropriate in subsequent route planning
  • To tackle the difficulty of parking in Hong Kong, the system advises drop-off locations to dispatch orders to multiple nearby outlets
  • To enhance vehicle usage, trucks that have completed their orders early or have available space are identified and will be called back to the distribution centre to pick up new orders for delivery
  • Provides customised handheld device for driver to find out the full list of items for each delivery order and upon completion of the order, to scan the location bar code of the delivery outlet as a proof of delivery
  • Data are sent in real time to a centralised system for record and analysis
  • Detailed transportation records in the system can facilitate automatic calculation of delivery charges of 3PLs for easier and more accurate settlement
  • Enables back office to real-time track and trace the delivery status so as to analyse and evaluate the 3PLs' performances and allocate resources more effectively

Benefits

95%
Increase in visibility of deliveries
50%
Increase in efficiency on route planning
30%
Reduction on operating cost