Carguesa, boasting over 27 years of expertise in the logistics arena, has been a pivotal player in transporting motorcycles, spare parts, and other products for the Auteco group.
However, in spite of its extensive journey, it encountered technological hurdles that capped its efficiency. The tide turned with the introduction of a new Transportation Management System (TMS).
Currently, they have a dedicated fleet of dispatch vehicles, which, due to the spike in sales volume, proved to be not enough, leading them to also outsource motorcycle transportation services. Auteco operates production facilities in Cartagena and Rionegro, along with a cross-docking hub in Bogotá, orchestrating merchandise and the last-mile delivery process.
“Our role within the group is fairly diversified. We’re not solely aligned with Auteco; actually, there are two branches: one known as Auteco SAS and the other as Auteco Mobility.
We also join forces with Celerix, a sibling enterprise offering a swath of services like human talent management, finance, legal, data analytics, and more. Additionally, we extend our services to other group members like Soltrech, overseeing motorcycle painting, and SI3 and Colauto, focusing on crafting chassis and saddles for motorcycles.
In essence, our collaboration spans across numerous entities within the group,” shares Daniel Echeverri, the Operations Chief at Carguesa.
Till about three years ago, Carguesa navigated through a landscape with scant tracking and zero traceability of its deliveries, landing them in somewhat of an empirical management scenario. To navigate these waters, they devised an in-house app named Carguesapp, offering a semblance of control over deliveries. However, this fix had its bounds, given their novice standing in software development.
In the quest for enhancement, they scouted other tech avenues, including different TMSs. Although these choices were sturdy, they fell short in flexing to the company’s unique needs. This scenario ushered them into a bottleneck concerning efficiency and operational control.
That’s when they stumbled upon Drivin, a platform that emerged as the missing puzzle piece. Drivin not only mirrored the planning and routing prowess of the previous TMS, but also brought the much-needed traceability to the table for Carguesa. This maneuver helped them meld various facets of their logistic operation into a more cohesive solution, propelling them significantly forward in efficiency and control.
Upon realizing Drivin could be the answer, the company kick-started a trial phase. Their past rendezvous with other TMSs enabled a swift evaluation of whether Drivin resonated with their specific needs. In just a fortnight, they ascertained that the platform was user-friendly, efficient, and adaptable.
The unwavering support from the Drivin team fast-tracked the implementation journey. The platform not only lived up to the planning and routing expectations, but also molded itself to their operation's unique profile, like motorcycle transportation with its distinctive requisites.
To gauge the system's usability, they arranged tests with drivers, who found Drivin more intuitive and quicker compared to previous solutions. Moreover, the platform laid out clear delivery instructions, smoothing the transition and setting the pilot project into motion with more assurance and confidence.
The seamless integration of Drivin with the existing SAP system was a notable highlight. Contrary to other tech integration endeavors that are often complex and protracted, this transition was fairly smooth sailing. The news of Drivin making its way into the SAP Store infused an extra dose of confidence in their decision, easing the transition and paving the way for a swift and efficient implementation.
On a different note, Drivin unveiled a driver bonus system, dubbed Drivin Rewards, standing out as one of its hallmark features. This novel system transcends mere route optimization; it's an all-encompassing incentive scheme, zeroing in on specific behaviors and goals.
Drivers are assessed based on metrics like sustained speed, vehicle handling finesse, and delivery efficiency. This rewards blueprint has morphed into a new key performance indicator for the company, already making a positive dent. Drivers are now highly motivated, as they can track their scores in real-time and receive ongoing feedback, which, in turn, uplifts efficiency and overall satisfaction.
Additionally, the company is rolling out Drivin's case manager to elevate customer service. This setup enables performance assessment of the customer service team, which also operates on goals and bonuses. Thus, Drivin has not only fine-tuned logistic operations but also brought solutions to the table for enhancing other business facets.
“Drivin shines with its ‘user-friendly interface and operational agility’, setting it apart as an easy-to-use tool compared to other systems we’ve explored,” notes Daniel. “While others may be sluggish and convoluted, Drivin delivers a ‘smooth user experience’ saving time and mitigating driver fatigue.”
Echeverri also underscores the integration with SAP as a strength: “Drivin’s seamless interplay with SAP has endowed us with a level of control and traceability we hadn’t encountered with other contenders. This hasn’t just optimized our internal workings but also broadened our service outreach to other group enterprises, furnishing key data and performance indicators.”
“This competitive edge was a cardinal factor in electing Drivin as our TMS of choice. It not only caters to our needs, but has been a real game-changer for us, particularly in terms of traceability and control,” Daniel remarks.
He also advocates that companies on the lookout to implement a TMS should veer towards a system that’s “user-friendly and flexible,” given that each product comes with its own logistic specifics. He accentuates that Drivin affords the “flexibility to adapt to varying dynamics,” unlike other more rigid TMSs.
Daniel also furnishes concrete data on the uplift they’ve experienced post Drivin system adoption, spotlighting that the service level has jumped from 88% to 95%.
He also highlights a substantial uptick in customer service efficiency. Previously, they needed a trio of individuals dedicated to handling customer calls inquiring about order status. With Drivin, customers can now track their orders in real-time, enabling personnel reassignment to other duties, thus optimizing human resources.
“With the same resource pool, we’re accomplishing more. Essentially, we’ve phased out the need for a dedicated customer service to track orders, as customers now have the visibility they crave.”
Daniel underscores a marked shift in managing breakdowns. Before Drivin, they had a 5% breakdown rate in the transported motorcycles, without a clear insight into which parts bore the brunt most frequently. With the visibility afforded by the platform, they could pinpoint not only the breakdown level but also the specific motorcycle parts that incurred damage most often, enabling them to take preventive steps like shielding certain motorcycle parts. Consequently, the breakdown level plummeted to 1%.
“Drivin, with its extensive capability to provide visibility through delivery tests, endowed us with the means to tackle issues we knew existed but couldn’t quantify. We’re now at a 1% breakdown rate, which is a substantial improvement,” concludes Daniel.
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