A Ukrainian entrepreneur proposes a unique methodology for optimizing logistics processes
According to a study by American Global Logistics, among the main trends of 2023 in the logistics market are the proactive management of geopolitical, macroeconomic, and environmental risks, digitalization, and visible supply chains. Logistics companies worldwide are looking for new business models effective in today's realities - after COVID-19 and during major conflicts. It is symptomatic that one of the most striking was born in Ukraine and, in the first year, brought its creator into the field of the most sought-after European market players.
Crisis as a Challenge
Ukrainian businessman Mykyta Semeniak registered his logistics company on February 10, 2022, and planned the first working day for February 24. All the grandiose plans he had made before the opening became irrelevant, and perhaps anyone else in his place would have given up the idea of creating a business in a zone of extreme turbulence. However, Mykyta saw new, unexpected opportunities in this situation, adapted to radical changes, completely changed his strategy, refocused on delivering humanitarian aid, and built alternative routes across Ukraine's western border. Over time, the processes were honed to automaticity, and the scope of activity was maximally expanded – in the most difficult circumstances, Semeniak brought the company to a high level. Today, Weiz Logistics is engaged in domestic and international freight transportation and works with all kinds of cargo – including general, bulk, containerized, hazardous, and oversized. Among the clients are the largest factories and enterprises in Ukraine and Europe, who continue to cooperate thanks to the high level of service.
How could it achieve such a result in a global crisis, consolidate it, build a stable reputation, and continue to develop? Several successful strategic decisions converged in this outstanding case, some of which were calculated, and some were found intuitively, but they proved to be undoubtedly effective.
Listening to Customers
Mykyta's potential for building a stable base was determined when he started his career at Dnipro, one of the largest regional centers of Ukraine. At that time, the Ukrainian market was already formed and divided by established players. "But I do not agree with the common assertion that nothing new can be created in an oversaturated market," says Semeniak. "The secret is to start not from competitors but from the needs of customers dissatisfied with the state of the market. Innovation does not necessarily have to be technological." Planning to launch his own business, Mykyta personally met and listened to dozens of potential customers, repeatedly finding out what they were dissatisfied with in the work of logistics companies.
As a result, he identified weaknesses and systemic shortcomings of the logistics market – primarily, a formal approach, impersonal service, too slow processing of requests, and insufficient consideration of cargo specifics. "At that time, a paradox occurred: the longer the company was present in the market, the more it resisted changes. But it is in logistics that everything constantly changes and requires innovation," recalls Mykyta.
Simplify and Reconfigure
In response to the key requirements of the time and industry, he formed his unique methodology for optimizing logistics processes, starting from the principle of reasonable simplification—eliminating unnecessary stages, automated routines, and personalized solutions for specific requests. This significantly saves time on processing applications, effectively allocates resources, and increases the accuracy of planning and speed of response. As a result, a new industry standard was set: previously, responses to requests were normally received in 24-48 hours; now, it takes several hours.
"The essence of the methodology is that we broke the entire logistics process into micro-stages and analyzed where most of the time is spent," says Semeniak. "It turned out that almost 70 percent of the time is spent not on solving the problem, but on internal approvals, information transfer between departments, and waiting for confirmations."
Key Decisions
Here's what Mykyta came up with instead.
Firstly, they introduced a system of parallel processes, where several tasks are solved simultaneously. For example, while one specialist processes the optimal route, the second prepares documentation, and the third selects the appropriate transport.
Secondly, they began to classify requests: They were divided into four categories of complexity, for each of which they developed a checklist and time standards. For the simplest, "green," the norm is a response within an hour; for the most complex, "red," up to three hours, but no more. In a sphere where competitors still respond to requests the next day, this approach gave Semeniak's company a distinct advantage.
Thirdly, they minimize data re-entry: a single system functions, and information is entered once and automatically transferred to all necessary documents. Oddly enough, most companies in the industry are still bogged down because the same data is entered many times.
Finally, there is a regular analysis of completed projects. Each month, 5-7 successful and problematic cases are selected and analyzed; thanks to this, all processes are constantly improved.
"Reverse" Approach
This approach proved its effectiveness "in the field" against the background of the main weaknesses of the Ukrainian logistics industry. For example, technical limitations due to military costs were countered by a constantly updated database on the state of infrastructure and a system for redirecting flows. The absence of uniform standards – by creating a pool and rating verified contractors. Impersonal, formal service – by a customer-centric approach with the assignment of a manager responsible for all customer projects and immersed in the specifics of his business. Rigidity in development – by flexibility and readiness for experiments: for example, when starting work with a new direction or type of cargo, a temporary project group is created for optimal solutions, and if successful, this solution is standardized and scaled. Insufficient customer awareness – by maximum transparency of tariffs and a detailed explanation of pricing. Unpredictability – a risk reduction system that guarantees stability thanks to the mandatory availability of backup plans. And any potential force majeure and crises – by prevention, working ahead of the curve, for example, they launched a special system that analyzes different factors and predicts potential delays 48 hours before they occur. Weiz Logistics plans to have its own IT platform with a user-friendly interface, with which customers can track cargo in real-time, receive analytics, and manage transportation. "Modern logistics should be predictive, not reactive," insists Semeniak. "We must solve problems before they arise."
New Industry Standard
Mykyta's goal is to build the largest logistics company in Ukraine and spread his working methodology as widely as possible in the industry – already today, colleagues and competitors are adopting the Weiz Logistics experience. "This is not just an ambitious idea," heemphasizes. "After the war, Ukraine will face a large-scale reconstruction, and logistics will play a key role in this." He plans to expand his geography in Western Europe in the coming years. He also considers the prospect of post-war Ukraine becoming a logistics hub connecting Europe and Asia. "I strive not just to adhere to European standards but to create synergy between Ukrainian flexibility and European systematicity," explains Semeniak. And, perhaps, this model holds the industry's future on an international scale.
