Success Story: Agrain Trans

Building a digital strategy by Agrain Trans to automate decision-making

  • Agrain Trans has been operating in the Ukrainian cargo transportation market since 2012. It is part of the Agrain agricultural group, but is an autonomous company that identifies 3 main areas of work as of 2022:

    • Transportation of grain and oilseeds for Agrain, partners and third-party customers,
    • Transportation of fuel,
    • Transportation of agricultural machinery on trawls.

    According to Agrain CFO Vitalii Shtempel, logistics has always been a bottleneck for any agricultural company, which is why the Agrain agricultural group cooperates with its own logistics company Agrain Trans.

Customer

Agrain Trans
Website: agreintrans.com.ua
Country: Ukraine
Industry: Logistic
Company size: SMB

Customer profile

Agrain Trans has been operating in the Ukrainian freight market since 2012. The company’s fleet consists of 72 Scania tractors with semi-trailers for agricultural goods. Seeds, grain and oilseeds, oversized cargo, fuel and fuel lubricants are transported.

Software and Services

Microsoft Dynamics 365 Business Central
SMART Localization

  • Agrain Trans is trying to get closer to the ideal logistics parameters, so it sets itself the following goals: to quickly and automatically make decisions based on an array of data, as well as quickly close documents while minimizing manual input.

    “Even before the war, logistics was not optimal for agricultural companies, because trucks went loaded to ports, but returned empty to the north of Ukraine (90% of crop production was traditionally exported).

    The russian invasion presented us with new challenges. How to export grain without access to ports? Where to store raw materials, the excess of which remained in Ukraine?

    The business automation we completed in 2019-2021 helped us build new transportation routes quickly, ensuring Agrain Trans stays marginal during the war.”

    Author's imageVitalii ShtempelAgrain CFO

    Why was there a need for change?

    Cooperation with SMART business began in 2019. The first stage was analysis.

    Agrain Trans found that 50% of transportation is so-called “empty traffic”, during which the transport moves unloaded. These are fuel costs, wages and just a waste of time. The cost of “empty traffic” was about 1 million dollars a year.

    Agrain Trans also had a set of unrelated tools: a number of ERP systems, Excel spreadsheets for reporting, the Wialon system for machinery traffic analytics. Dispatchers and logisticians dealt with a large number of tables. Firstly, displaying any operation in documents took a very long time. Secondly, Excel has a lot of room for human errors: in formulas, incorrect or untimely entry of data, in the wrong sequence of data entry.

    All this led to the fact that the company’s management did not see the real state of affairs of the company.

    Modern ERP system Microsoft Dynamics 365 Business Central and daily management reporting in Power BI

    In 2020, management accounting was implemented in the Business Central ERP system. In 2021 – accounting and tax accounting using SMART Localization for conducting business activities in accordance with the requirements of the Legislation of Ukraine. Analytics from all systems is now displayed in Microsoft Power BI.

    This made it possible not only to see the real and timely state of affairs of the company, having gained control over the business, but also to estimate marginality of customer transportation.

    “We used to work based on “the more orders, the better” principle. But, having received a customer base and analyzed all transportations for the past period, we can understand in whose favor to make a decision, which customer or route will be more profitable.

    Moreover, if we understand that it would be more profitable to hire a contractor for the transportation of Agrain’s crop, we do it. And it is this smart approach that increases the consolidated financial result.

    As for April 2022, Agrain Trans started working with food and humanitarian cargoes.”

    Author's imageVitalii ShtempelAgrain CFO

    Integration of Business Central and Wialon

    The purpose of automatic import of fuel usage data from Wialon to Business Central was to move away from manual fuel write-offs and switch to automatic fuel write-offs.

    The data, subsequently exported to the ERP system, must be acceptable to all participants in the process. Drivers must understand that the company is building the most honest and transparent relations with them. The company must be sure that the data from machinery is truthful.

    At present, Agrain Trans has already received the developed solution functionality from SMART business, but does not yet use integration on an industrial scale, because martial law has slowed down the process of collecting an array of data and determining realistic fuel consumption rates.

    Effective data-driven managerial decisions

    According to Vitalii Shtempel, data is the foundation of the company’s digital strategy. Information about the work of Agrain Trans is collected in the Business Central ERP system and reaches the CFO in the form of visual reports in Power BI. Thus, analytics increases the efficiency of management decisions. The long-term goal of the company is automated decision-making and, as a result, minimization of errors arising from the human factor.

    “Agrain Trans is turning a digital strategy into reality right now. Will certain transportations be marginal; how to build a route to use as little fuel as possible; what financial results will cooperation with retail chains bring: now these decisions are based not on experience or gut feeling, but on consolidated analytics. This became possible thanks to the implementation of Business Central.

    We at SMART business are sincerely happy about the successes of our customers and feel proud when their business processes become more organized.”

    Author's imageNatalya OnyshchukСЕО SMART business

     

    To learn more about the solutions and services of SMART business,
    call +38 (044) 585-35-50 or submit your request here.

  • Contact us to get more information

    Share this content