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Baltika Teams up with Yandex to Introduce Innovative Solution for Trafic Flows Management and Optimization in Real Time

Baltika Breweries, part of the Carlsberg Group, introduces an innovative logistics optimizations system for stock products based on the Yandex.Routing platform. The system will also ensure the delivery quality monitoring. By building optimal routes, the company plans to cut transportation costs, make interaction with carriers completely transparent and, eventually, improve the customer service quality.

Along with the introduction of the route planning service, Baltika connects its own trucks and vehicles of carriers and distributors to the Yandex delivery monitoring system. For the time being, over a thousand vehicles have been connected to the monitoring system. The system daily processes information and analyzes the delivery quality of about 20,000 customer orders, and this amount keeps increasing.

The Yandex.Routing-based solution can monitor online the delivery of all finished products of the company and forecast the delivery time of each order taking into account the dynamic traffic situation, which ultimately makes it possible to notify customers of the delivery status and expected delivery time. Reports on would-be delays will be used to organize the necessary activities before any delivery problems emerge. Also, the platform will help the company streamline the truck fleet being used while significantly reducing costs.

Sergey Suchkov, Senior Logistics Director, Eastern Europe, Baltika Brewery, part of the Carlsberg Group: “The rapid development and digitalization of the “last mile” (cargo delivery to the customer's door) are increasingly shifting the focus onto flexibility, speed of decision making, and ongoing improvement in customer experience. The new platform based on the Yandex solution will allow us to manage key service in real time and concentrate on preventing possible delivery issues. As you understand, cargo delivered to the store even five minutes after closing time, is actually an undelivered cargo. The results achieved so far are viewed by both companies as a basis for the development of further partnership, which should affect Baltika’s supply chain and have an impact on the industry as a whole”.  

As a leader of Russian brewing industry, Baltika has been consistently improving the organization of finished products’ delivery and enhancing level of service, provided to the partners. The new platform is the next step in development of a modern integrated E2Е logistics ecosystem, which include seamless integration with carriers, 3PL and distributors, which makes it possible to manage key services in real time and ensure transparency of teamwork. Moreover, the cloud solutions underlying the technology will significantly simplify the integration of the service into the IT infrastructure of all the partners, involved in this project.

Grigory Povarov, Head of Yandex B2B geo services: “We at Yandex.Routing want to integrate Yandex technologies — above all, maps, road congestions, algorithms, and computational resources — into the current logistics business processes to make them more efficient and transparent. The collaboration with the market leader, Baltika Breweries, allowed us to look at the retail industry as a whole and come up with service requirements while taking into account the specifics of interaction between all the supply chain participants”.

The platform uses algorithms that process data on traffic in cities to build optimal routes taking into account the expected intervals of trucks’ arrival at each outlet. The Yandex automated planning algorithm takes into account more than 50 parameters: from cargo size and delivery time slots to warehouse throughput capacity and the number of driver shifts. These algorithms can be customized to reflect the current business processes of the company, balance out the distribution of orders and get the best routes.

A unique feature of the technology is its ability to take into account the traffic forecast when planning routes: the Yandex.Routing algorithms predict congestions based on historical data on the average speed of traffic on different sections of roads and a precise road map, which is updated daily. Other platforms can take into account only the average speed on the specific part of the road, whereas it is the road situation that most affects time of cargo arrival to the customer. Forehanded status update about the exact time of arrival can significantly reduce the time for truck unloading.

The system has a modern intuitive interface, which can significantly reduce the cost of employee training.

The introduction of digital technologies is one of the priorities in the SAIL’22 business strategy of the Carlsberg Group. To this end, the company uses digital solutions and techniques to uncover new business opportunities. Baltika is constantly working to improve the logistics infrastructure, including in ​​IT solutions. The joint project with Yandex expands the company’s previous initiatives in digitalization of logistics, including the GPS monitoring of the finished products’ delivery quality and a mobile application for drivers, the launch of which was announced in February 2019. Baltika is committed to improving all operational processes, integrating digital technologies into all business aspects, which requires fundamental changes in interaction with the market, internal and external operations, and the company’s operation principles.