Solar Coca-Cola Enhances Distribution Performance with Descartes' Routing Solution

Rhea-AI Summary

Descartes Systems Group (Nasdaq:DSGX) announced that Solar Coca-Cola, Brazil's second-largest Coca-Cola manufacturer and distributor, is using Descartes' route execution and fleet performance management solution to optimize last-mile delivery performance. The solution is being used across 1,400+ drivers, 44 distribution centers, and 13 production facilities, serving an area representing 70% of Brazil.

Key benefits include:

• Real-time route optimization based on traffic, delivery windows, and weather conditions
• Mobile-based platform for drivers and supervisors
• Improved driver performance and distribution visibility
• Enhanced customer service through better on-time delivery
• Reduced mileage and costs

The implementation has streamlined Solar Coca-Cola's logistics processes, replacing manual, time-consuming methods with an efficient, scalable solution.

Positive

• Optimization of last-mile delivery performance for 1,400+ drivers across 44 distribution centers and 13 production facilities
• Real-time route optimization based on traffic, delivery windows, and weather conditions
• Improved driver performance and distribution visibility for supervisors
• Enhanced customer service through better on-time delivery performance
• Reduced mileage and costs through shorter route paths and efficient navigation

Negative

• None.

Insights

Tech Expert

Solar Coca-Cola's adoption of Descartes' routing solution marks a significant leap in logistics optimization. The implementation of real-time route resequencing based on traffic, delivery windows and weather conditions is a game-changer. This dynamic approach to last-mile delivery is important in a country as vast and diverse as Brazil. The solution's ability to continually optimize routes post-dispatch is particularly impressive, as it addresses the unpredictable nature of urban logistics.

The cost savings potential here is substantial. By reducing mileage and total route time, Solar Coca-Cola is likely to see a significant decrease in fuel consumption and vehicle wear and tear. Moreover, the improved on-time delivery performance could lead to higher customer satisfaction and potentially increased sales. The scalability of this solution across 44 distribution centers and 13 production facilities is a testament to its robust architecture and adaptability.

Market Research Analyst

This partnership between Solar Coca-Cola and Descartes Systems Group is indicative of a broader trend in the beverage industry towards digital transformation of supply chain operations. The focus on last-mile delivery optimization is particularly timely, given the surge in e-commerce and changing consumer expectations for faster, more reliable deliveries.

The implementation of this solution by Solar Coca-Cola, covering 70% of Brazil, sets a new standard in the region. Competitors may feel pressure to adopt similar technologies to remain competitive. This could lead to increased demand for logistics optimization solutions, potentially benefiting companies like Descartes. Investors should note that as more companies in various industries adopt such solutions, we might see a ripple effect across the supply chain technology sector, driving growth and innovation.

Financial Analyst

While specific financial figures aren't provided, the scale of this implementation suggests a significant investment by Solar Coca-Cola. The potential return on investment (ROI) could be substantial, primarily through operational cost reductions and improved service levels. Key areas of financial impact include:

• Reduced fuel costs through optimized routing
• Lower labor costs due to increased driver efficiency
• Potential increase in sales from improved customer satisfaction
• Reduced maintenance costs from decreased vehicle wear

For Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), this high-profile implementation could lead to increased interest from other large beverage distributors, potentially driving revenue growth. Investors should monitor Descartes' upcoming financial reports for signs of increased adoption in the food and beverage sector, which could indicate a positive trend for the company's market position and stock performance.

SÃO PAULO and ATLANTA, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that Solar Coca-Cola, the second largest manufacturer and distributor of Coca-Cola in Brazil, is using Descartes’ route execution and fleet performance management solution to optimize the last mile delivery performance of 1,400+ drivers across 44 distribution centers and 13 production facilities serving an area that represents 70% of the country.

“We’ve been on a journey to improve the company’s logistics processes through automation,” said Gabriel Montefusco, Logistics Data Analyst at Solar Coca-Cola. “With Descartes’ solution, we now have one mobile-based platform used by drivers and their supervisors to manage day-to-day route execution. After trucks leave on their routes, the solution continually resequences routes based on real-time traffic information, delivery windows and weather conditions, allowing drivers to perform better and giving supervisors greater visibility into distribution operations.”

“Without the solution, this process would be manual, extremely time-consuming and not scalable,” said Luis Rafael Sousa Fernandes, Logistics Planning and Projects at Solar Coca-Cola. “Drivers can also use the same app to capture any customer information at the point of delivery and supervisors use it to easily track driver progress and status updates throughout the day. It’s provided significant value in our high-service environment.”

Part of Descartes’ routing, mobile and telematics solution suite, the Descartes route execution and fleet performance management solution helps retail food and beverage distribution companies, like Solar Coca-Cola, manage route execution for optimal efficiency and minimize the impact of unforeseen events on customer service levels, mileage and costs. By continually re-optimizing route plans based on real-time traffic data and other variables, the solution enhances customer service by improving on time delivery performance, lowers mileage by guiding drivers through shorter route paths, and decreases total route time and costs by helping drivers navigate through heavy traffic with alternate routes and stop sequences.

“We’re pleased our solution has helped Solar improve the customer experience for its complex distribution operations,” said Douglas Alves, Sales Executive at Descartes. “We have a broad set of routing capabilities to help our customers in food and beverage distribution and other industries solve their last mile challenges. Our mobile applications are used by drivers around the world to improve productivity and help companies achieve higher standards of delivery performance for their customers.”

Learn more about Descartes’ route execution and fleet performance management solutions and its Routing, Mobile and Telematics solution suite.

About Solar Coca-Cola

Solar Coca-Cola is the second largest manufacturer and distributor of the Coca-Cola System in Brazil, one of the 13 largest manufacturers of the Coca-Cola System in the world, one of the twenty largest companies in Northeast Brazil and one of the largest consumer goods companies in the country. With the capacity to produce more than three billion liters of drinks/year to serve approximately 400,000 points of sale, Solar has approximately 17,000 employees distributed across our 13 factories and 44 distribution centers, in a territorial area that represents 70% of Brazil, operating in the entire North, Northeast and State of Mato Grosso regions and part of Goiás and Tocantins. For more information visit https://solarcocacola.gupy.io/.

About Descartes

Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and Twitter.

Global Media Contact
Cara Strohack                                                                     
Tel: +1(800) 419-8495 ext. 202025                                 
cstrohack@descartes.com  

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relate to Descartes’ routing, mobile and telematics solution offerings and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada including Descartes’ most recently filed management’s discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FAQ

How is Solar Coca-Cola using Descartes' routing solution to enhance distribution performance?

Solar Coca-Cola is using Descartes' route execution and fleet performance management solution to optimize last-mile delivery performance for 1,400+ drivers across 44 distribution centers and 13 production facilities. The solution provides real-time route optimization, a mobile-based platform for drivers and supervisors, improved visibility, and enhanced customer service.

What are the key benefits of Descartes' routing solution for Solar Coca-Cola?

Key benefits include real-time route optimization based on traffic and weather conditions, improved driver performance, enhanced distribution visibility, better on-time delivery performance, reduced mileage, and decreased total route time and costs.

How does Descartes' solution (DSGX) improve efficiency for Solar Coca-Cola's distribution operations?

Descartes' solution replaces manual, time-consuming processes with an efficient, scalable platform. It continually re-optimizes routes based on real-time data, allows drivers to capture customer information at delivery points, and provides supervisors with easy tracking of driver progress and status updates throughout the day.

What percentage of Brazil does Solar Coca-Cola's distribution network cover using Descartes' routing solution?

Solar Coca-Cola's distribution network using Descartes' routing solution covers an area representing 70% of Brazil.