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