OPTIMIZING TRANSPORT OPERATIONS FOR A LARGE-SCALE PHARMACY RETAIL NETWORK

Smartlog Transport Management System (STM) was implemented for a pharmacy retail business managing around 3,000 delivery points per day. Before the project, the logistics team relied heavily on Excel for order consolidation, route planning, vehicle assignment, and carrier coordination. STM helped centralize transport data, automate key dispatching activities, and improve vehicle utilization. The project recorded an 8% reduction in transport costs, approximately 20,000 km saved per month, and a 50% reduction in operational manpower compared with the previous manual model.

ABOUT OUR CUSTOMER

Our customer is a large-scale pharmacy retail business operating a nationwide distribution network with approximately 3,000 delivery points per day.

Its transport network is supported by three core carriers and additional subcontractors, with around 30–40 contracted vehicles operating each day. The dispatching team consists of approximately six employees across southern and northern Vietnam.

At this scale, transport planning, vehicle utilization, and cost control become critical to maintaining service quality and supporting continued network expansion.

OPERATING CONTEXT

Before implementing Smartlog STM, transport operations were managed mainly through Excel.

The dispatching process covered order intake, order consolidation, route allocation, vehicle assignment, and carrier selection. Due to the high delivery volume, the team could spend around one full day completing the dispatching process, with orders typically planned for transportation two days after placement.

The fragmented process also made it difficult to proactively arrange loading areas, assign vehicles, and automate billing. At the same time, the business needed to improve vehicle turnaround, route efficiency, and load utilization across its contracted fleet.

KEY CHALLENGES

High dispatching workload and heavy reliance on manual processes.
Thousands of delivery points and nationwide routes required significant manual effort for order consolidation, route allocation, vehicle assignment, and carrier selection.

Vehicle utilization needed to improve.
With contracted vehicles operating on a recurring basis, the business needed to reduce unnecessary mileage, improve vehicle turnaround, and make better use of available capacity.

Transport and billing data remained fragmented.
Billing was not fully automated, making reconciliation more resource-intensive and limiting visibility into transport costs.

SMARTLOG'S APPROACH

Smartlog STM was implemented as a centralized transport orchestration platform, helping automate the key stages of planning and delivery execution.

Automated order consolidation, routing, and vehicle assignment
STM supports the transition of core dispatching activities from manual processing to system-driven workflows, reducing dependence on Excel and individual planner experience.

Improved vehicle utilization
The system supports route optimization, vehicle allocation, and mileage reduction, helping the business improve the efficiency of its contracted fleet.

Better delivery visibility
Delivery status is managed centrally, while stores can receive notifications when drivers are approaching, helping them prepare for receiving activities.

Centralized data for billing and cost management
Transport data is recorded within a single platform, providing a stronger foundation for billing, reconciliation, and ongoing cost analysis.

RESULTS

Following the implementation of STM, the project recorded several significant operational improvements:

• 100% on-time and correct-location delivery

• 8% reduction in transport costs

• Approximately 20,000 km saved per month

• 50% reduction in operational manpower compared with the previous manual model

No late-delivery complaints or penalties were recorded, and stores were notified when drivers were approaching the delivery point.

These results demonstrate the impact of combining automated dispatching, route optimization, and centralized transport data within a large-scale retail distribution network.

BUSINESS VALUE

STM reduced the business's dependence on manual transport coordination.

Before implementation, the logistics team spent significant time working across Excel files, consolidating orders, allocating routes, and assigning vehicles. With STM, these core activities became more system-driven, allowing the team to focus more on exception handling and operational control.

Reduced mileage and improved vehicle utilization also contributed directly to the company's transport cost objectives.

More importantly, centralized transport data gives the business a stronger foundation for evaluating carrier performance, monitoring transportation costs, and maintaining service quality as the retail network continues to expand.