Every day, well-known food products reach Swedish households, grocery stores, restaurants and commercial kitchens. For consumers, it is simply expected that the products will be there when they need them. Behind the scenes, however, an extensive logistics network is required to make it all work.
Orkla Foods Sweden is one of Sweden’s largest food companies, with well-known brands including Felix, Grandiosa, Fun Light, Paulúns, Risifrutti, Abba, Bob, Ekströms and Önos. The company operates eight production sites across the country. Behind every product is an extensive network of factories, warehouses, suppliers, carriers and logistics partners.
For Leif Johansson, Transport Manager, transports logistics is an essential but often invisible part of the business.
- “Logistics is a support function, but if we don’t get the raw materials, packaging or products we need when we need them, we can’t produce. And if we can’t produce, we have nothing to sell. At the same time, you really only notice logistics when it doesn’t work,” he says.
A complex operation with high demands
Orkla Foods Sweden's logistics operation handles large transport volumes every day. Raw materials and packaging need to reach the right production facility at the right time, while finished products need to be distributed to warehouses, wholesalers, grocery retailers and restaurant customers.
- “We’re somewhat unique in handling ambient, chilled and frozen products. That adds complexity to the operation, not least from a logistics perspective.”
But logistics is about more than transportation. Behind every transport is also a financial flow in which invoices need to be reviewed, prices verified and costs allocated correctly.
- “We have a fairly complex accounting structure. A freight invoice can contain many different cost lines that all need to be allocated correctly. It’s work that requires both knowledge and experience.”
At the same time, another question became increasingly important: How do you ensure that critical knowledge does not become dependent on individual people?
- “You realize that the business can’t depend on one person holding all the knowledge. We need to build processes that are sustainable over time and can continue to be developed by the next generation.”
A solution combining control and automation
When Orkla Foods Sweden began reviewing its ways of working, the aim was to gain better control of transport costs, reduce manual work and build more robust processes at the same time.
A few different alternatives were evaluated, Leif tells:
We didn’t find any other solution that could handle both price validation and automated accounting in the same flow. Many could solve one part or the other, but Logivity was the only provider we found that could offer the complete solution. For us, that was decisive.
Through its collaboration with Logivity, Orkla Foods Sweden has digitalized and automated the management of transport-related costs. Transport orders are automatically matched against incoming invoices, discrepancies are identified, and costs are allocated according to predefined rules.
The result is not only more efficient administration – it also provides an entirely different level of control.
From assumptions to facts
For Jan Karlsson, who is gradually taking over parts of Leif’s responsibilities, the change means more than simply saving time.
“Previously, much of the process depended on experience and manual checks. Now the system supports us in identifying discrepancies and ensuring that we work consistently over time.”
One of the greatest benefits is increased transparency.
We now have facts instead of assumptions. That allows us to analyze costs in a completely different way and have better discussions both internally and with our partners.
As data is collected, structured and made visible, it also creates better conditions for follow-up and continued improvement.
More Than a System
For both Leif and Jan, the transformation is about more than technology.
“The most important thing is being able to talk to each other. You quickly notice whether someone truly understands the business or not.”
The collaboration with Logivity has therefore been about more than implementing a new system. It has also been about developing new ways of working together.
“We’ve been able to contribute ideas, requests and suggestions for improvement along the way. And we’ve seen them turned into actual solutions. That builds both trust and engagement.”
Leif also highlights continuity as an important part of the collaboration.
“It feels reassuring. The knowledge is shared among several people, and you can tell that they understand both our business and our challenges.”
That is also why he describes the relationship as more than a traditional supplier relationship.
Logivity is a true partner – knowledgeable, responsive and easy to work with.
Continuing to develop
The transformation is far from complete.
Demands for efficiency, control and transparency continue to increase, while new technologies create new opportunities for development.
For Leif, the future is about continuing to build on a solid foundation.
“Nothing is ever completely finished. When you have a good foundation, it’s easier to keep building. The most important thing is to continue developing together.”
While logistics is primarily a support function for a company that delivers well-known food products to millions of consumers every day, it is becoming increasingly important for creating control, efficiency and long-term competitiveness.
By combining people, processes and technology, Orkla Foods Sweden can continue to develop its logistics function and strengthen the business – today and in the future.
Credits: Input, references and images are kindly provided and approved for Logivity by Orkla Foods Sweden.
