Grupo Bimbo uses Oracle to optimize distribution
Grupo Bimbo is a Mexican company and a leader in the baked goods industry. Grupo Bimbo partnered with Oracle to optimize their baked goods distribution costs and cut daily transport scheduling time in half.
“With Oracle Transportation Management Cloud we have achieved an integrated solution for distributing our bakery products, providing us with nationwide visibility across our 22 distribution centers and a 1% savings in transport costs.”
Grupo Bimbo needed to optimize the distribution costs of the company’s food products to boost profitability.
Also, the company wanted greater visibility into the entire nationwide baked goods transportation network. It needed to eliminate manual processes, such as the use of spreadsheets, at each distribution center in order to reach optimal use of its transport infrastructure and staff.
Why Grupo Bimbo chose Oracle
"Bimbo has relied on Oracle technology for many years. Oracle Transportation Management is a leader in the transport management sector, and Oracle’s expertise in providing these solutions was a key factor in our decision. We secured the appropriate level of management and support for the solution, which allowed us to focus more resources on strategic priorities."
— Francisco Javier Puente Ruiz, System Logistics Manager, Grupo Bimbo, S.A.B. de C.V.
Initially, Bimbo implemented Oracle Transportation Management on premises, but migrated to the cloud platform in 2016. It also worked with Capgemini to establish system requirements and configurations before the implementation.
The company saved significantly on freight costs, including fuel and carrier hours, by using Oracle Transportation Management Cloud to expand visibility into and control over logistics for the company’s baked goods production facilities.
The time needed each day to schedule product distribution was cut in half—from 90 minutes using spreadsheets to 45 minutes using Oracle Transportation Management Cloud (PDF), thereby ensuring the timely delivery of baked goods each day. The company also integrated Oracle Transportation Management Cloud with Oracle Order Management to automate sales order creation nationwide, replacing paper forms previously used at each of the 22 plants and optimizing transport efficiency.
Grupo Bimbo reduced human resource costs associated with product delivery by using Oracle Fleet Management Cloud (PDF) to efficiently assign routes to operators and trucks, accurately calculate rates for each trip, and ensure proper payment to each operator.
In addition, the company improved the rate negotiation process, thanks to the complete visibility of transport costs nationwide, including the number of kilometers and stops, the centralization of such rate information, and the elimination of decentralized spreadsheets.
Oracle Transportation Operational Planning Cloud (PDF) helped automate trip calculations and the number of trucks needed to transport the food, thus eliminating errors and inefficiency associated with manual scheduling.
Bimbo worked with Capgemini, an Oracle Platinum Partner, to establish the parameters for the Oracle Transportation Management Managed Cloud Service implementation. "Capgemini certified the logistics model that we designed using Oracle solutions, allowing us to ensure that our products are delivered in a timely fashion and optimize transport management, and then we implemented the cloud-based solution," said Julio César Flores Lastiri, supply chain IT project leader, Grupo Bimbo, S.A.B. de C.V.