Papu.io – the winner of LOG UP competition
The article comes from the website NM.pl, and talks about what makes our system so unique!
Author: Chairman of the Board and Competition Jury of LOG UP – Logistic Start-up Bank
Year by year, delivery orders are becoming a key sales channel for restaurants. The report “Poland on the plate 2018”, by Makro Cash & Carry, shows that Polish people most often order takeaway dishes via the telephone (77%), directly in the restaurant (37%), via the Internet (29%), or via a mobile application (17% ). At the same time, there are third-party services that collect orders as well, such as Takeaway.com, Glov, or UberEats. According to Papukurier, the online channel itself is already responsible for nearly 20% of all delivery orders from the restaurants. This gives a value of approximately PLN 0.5 billion per year, with the total value of the supply market at PLN 2.5 billion in 2017.
The Papukurier company was founded in 2015 in Poznań and is responsible for the creation of innovative software that automates and manages the process of delivering food from restaurants to customers.
Although some restaurants allow customers to order food online, the process of collecting orders in a restaurant is most often not integrated with any external sales channel. In the case of telephone orders (which happens most often – 77% of the time), the employee must provide an approximate delivery time, which becomes a binding promise. For the time to be realistic, the person accepting the order must know in detail everything that happens in the restaurant: whether the cook is preparing a large order, where the driver is and when he will reach the restaurant, as well as the distance between the addresses he has to go to, road and weather conditions, etc. If many orders are already on the to-do list, he needs to know how to combine them so that the customer receives them at the requested time.
If during the phonecall, the waiter wrote down the order on the piece of paper (which is very common), he must enter it manually to the POS (Point of sale – the system used by restaurants). Then the printed out order should be taken to the kitchen. The right timing is the key because if the food is ready too early, there is a risk that it will get cold by the time driver arrives. In some cases (for example Neapolitan Pizza), that means it has to be thrown away. On the other hand, if the order is prepared too late, there is a high risk that the driver will have to wait 10-15 minutes, and the company will suffer a loss as the productivity of his work will decrease.
If we assume that despite the difficulties, the food was ready just on time for the driver to picked it up, we still have some issues to consider. If there is only one order to deliver, the problem doesn’t exist. The driver takes it and brings it to the customer. But what if there are 2, 3, or 20 orders to pick up? How to manage them? Which orders should go together so that the customers are satisfied and the delivery is efficient?
Another challenge is communication between the restaurant, the driver, and the customer. When the driver leaves the restaurant, the person accepting the order usually loses contact with him, so he/she does not know when the order will reach the right address. Has it arrived already? If not, when will it be? How soon can the driver pick up another order? If at this stage a customer calls with the polite question: “Where is my food !?”, the staff can only assure him that the driver “is on his way”. That makes a driver a key person in the whole delivery process. He has to check the destination and choose the best route. Navigation can help with that, but the problems begin when many orders have to go to several places at the same time. What is the optimal route, and how to determine it? Which orders must be delivered first? Which customer is waiting for the longest?
Papukurier’s research on a sample of 200,000 orders, states that 10% of them had some kind of errors. Very common is wrongly written address – not only the apartment number, but also the street, and even the town itself! It can happen that customers give the wrong phone or floor number, or the restaurant’s employee writes down 5:00 p.m. instead of 1 p.m. Now let’s consider the example that the customer is not at the given address. That starts the tedious process of trying to get a touch with him. What happens if the phone number that the driver has is incorrect? Or if the delivery address was written on a piece of paper that the driver had lost somewhere? Not only you have to find the phone number or the address, but you also risk the consequences of incorrect Personal Data Management (GDPR).
Cashing up the driver is also a very complicated process. It has to include the number of orders broken down by different sales channels, the number of deliveries made by individual drivers, listing cash, card, and online payments, driver’s remuneration including a refund for petrol, checking delivery times, verification of customer ratings and more.
For who is the solution?
The target group of the Papu.io system are restaurants whose main source of income (over 75% ) comes from delivery. In Poland, there are 7,500 premises, which is 15% of all restaurants. For example, in the USA there are 150,000 of them. Papu.io automates the delivery process – orders sent to restaurants from external sales channels (portals, applications, telephone, or from own websites) are automatically integrated and entered into the system.
Thanks to this process, employees do not have to write down all the orders. They enter them into the system and assign them to drivers. The restaurant owner can see the current status of the order, where the driver is on the map, and when he will be back. He can also check how customers evaluate the delivery and how long it took a driver to reach the right address, whether he was late e.t.c.
Papu.io allows you to settle each driver at any time (from delivery time, kilometers traveled, the number of orders delivered, etc.). Another element of the system is an application. The application can forecast how many deliveries will the restaurant have, e.g. next Friday at 12.00, based on all the external information that matters, such as holidays, weather, cultural events, etc. The purpose of the application is to help restaurateurs correctly arrange the schedules of employees. That’s extremely important. When too many employees work on a shift, the deliveries won’t be as profitable as they could be. On the other hand, if there are the number of drivers is too little, that might cause delayed deliveries and dissatisfied customers.
What is unique about the Papu system?
The fundamental competitive advantage is the process approach to product creation. The aim of the Papu.io system is not to improve a selected element of the delivery process but to maximize the automation of the entire procedure in order to replace the person accepting the order and to automate driver management.
A remote approach to the sales process and a product in the SaaS model (software as a service) provide the company with efficiency and full scalability. At the same time, the company has adopted an innovative sales process that uses a process approach, just like when manufacturing a product. Due to the dispersion of customers and the b2b model, Papu.io is sold virtually and completely remotely.
The sales process takes place in several stages and includes:
- the pre-sales stage, in which the company contacts a precisely defined target group,
- the sales stage, in which the customer is presented with the solution,
- implementation stage, in which the system is launched at the customer’s restaurant,
- customer retention stage, where the company provides full after-sales service.
Territorial expansion beyond Poland is planned in the near future. From the technological point of view, the company is working on a new generation of forecasting mechanisms based on elements of artificial intelligence.
About the contest
Several dozen young companies applied for the competition, the partner of which was Mantis Polska, and the organizers of Forum Media Polska and Appgration. 19 were qualified for the second stage of the competition, and 10 for the third stage. Among the best ten participants, the Competition Jury composed of Michał Pajdak (president of the Appgration board, chairman of the Competition Jury), Mariusz Puto (general manager of Mantis Polska), Artur Olejniczak (project manager, Institute of Logistics and Magazynowania), Mateusz Staniszewski (director of the Wola Krzysztofoporska Distribution Center at Kaufland Markety Polska), Piotr Sędziak (operational director/proxy of ABC Data, member of the board of the Polish Association of Logistics and Purchasing Managers), Szymon Górski (director of the Logistics Department of Volkswagen Group Polska), Arkadiusz Kawa (University of Economics in Poznań), Jacek Żak (Poznań University of Technology), Bartosz Jacyna (manager of Logisys strategic projects, HUB logistics), Anna Frąckowiak (editor-in-chief of “Nowoczesna Magazyn”) and Magdalena Libiszewska (editor-in-chief of the magazine “Logistics a Quality”) selected top three projects:
FIRST PLACE: PAPUKURIER for the project of the automation system of the delivery process in Papu.io restaurants
SECOND PLACE: EFENTO T.P. Szydłowski, K. Zaręba for the design of the Efento Transport temperature monitoring and parcel registration system
THIRD PLACE: Notinote for the notiOne locator design.
More about the competition: www.logup.pl