Innovative predictive analytics technology enabled the domestic parcel delivery network to improve capacity utilization, reduce costs, and refine pricing strategy for end customers.
Transmetrics, the leading predictive analytics technology platform for the logistics industry, announces that Speedy has reduced their overall costs by an estimated 7-9% after using the Transmetrics platform. Speedy is a leading courier company in Bulgaria and is a member of DPDgroup, Europe’s second largest international delivery network.
By using Artificial Intelligence and complex proprietary forecasting and optimization algorithms, Transmetrics’ predictive software helped to significantly improve Speedy’s capacity utilization and cancel unnecessary linehauls. It also helped Speedy to drastically improve pricing accuracy. Specifically, it meant they could accurately measure the delivery cost of each parcel, enabling Speedy to identify low or negative margin customers and adjust their pricing accordingly.
“With the Transmetrics’ application, the benefits are very visible,” said Danail Danailov, a Speedy board member. “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%, which is a great result for us.”
Picture Credit: Dnevnik.bg
Speedy handles over 16 million packages annually with a network of seven hundred vehicles and ten major logistics hubs. Prior to working with Transmetrics, Speedy faced challenges with capacity planning for their own assets as well as for third party providers due to the company’s high rate of growth and seasonal fluctuations in business volumes. The Transmetrics solution now enables Speedy to use IT for complex planning decisions and to increase operating resilience for the future.
“We are impressed by the improvements delivered by the Transmetrics platform, which were both immediate and quantifiable,” says Alexander Petkov, Director of Operations and Board Member, Speedy. “Using Transmetrics` reporting system, we can measure the efficiency of our fleet and set correct KPIs for our warehouse team. The implementation was easy and support from the Transmetrics team is always excellent. We encourage other divisions within DPD to implement the solution,” continues Petkov.
The implementation of Transmetrics’ predictive analytics tool could result in big savings across the logistics execution and services market which is currently valued at $2.7 trillion. These savings can be made by improving capacity utilization, reducing costs, and refining pricing strategy for end customers. By forecasting future shipping volumes and applying AI optimization, Transmetrics’ software can help ensure that cargo transportation is always running as full as possible. Between 15-25 percent of the time in the U.S. trucks are actually driving without any cargo with a similar situation in the European Union.
“DPDgroup is among Europe’s most dynamic and forward-looking logistics companies,” added 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.”
DPDgroup is the second largest international parcel delivery network in Europe. DPDgroup combines innovative technology and local knowledge to provide a flexible and user-friendly service for both shippers and shoppers. With its industry-leading Predict service, DPDgroup is setting a new standard for convenience by keeping customers closely in touch with their delivery. With 60,000 delivery experts and a network of more than 28,000 local pickup points, DPDgroup delivers 4 million parcels to over 230 countries each day through its three brands: DPD, Chronopost and SEUR. DPDgroup is the parcel delivery network of GeoPost, which posted sales of €6.2 billion this year.
Transmetrics unlocks the power of Big Data and predictive analytics for the cargo transport industry. The company’s products consist of multiple steps: data cleansing, advanced forecasting, predictive optimization and execution controlling modules. Transmetrics’ products help companies make better, data-driven decisions and continuously improve their operational performance. Transmetrics works with the world’s leading logistics companies, including three global Fortune 500 companies.