Papu.io – the winner of LOG UP competition

The Papukurier company deals with the creation of innovative software that automates and manages the food delivery process.

This article comes from the NM.pl website 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 on 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 also collect orders, such as Takeaway.com, Glovo, or Uber Eats. According to Papukurier, the online channel is already responsible for almost 20% of all restaurant delivery orders. This gives a value of approximately PLN 0.5 billion per year, with the total value of the supply market amounting to PLN 2.5 billion in 2017.

A winning solution

The Papukurier company was founded in 2015 in Poznań and is responsible for creating 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, for the most part, not integrated with any external sales channel. In the case of telephone orders (which happens most frequently, i.e. 77% of the time), the employee must provide an approximate delivery time, which becomes a binding promise. For that delivery time to be realistic, the person taking 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 they will reach the restaurant, as well as the distance between the addresses they have to go to, road and weather conditions, etc. If many orders are already on the to-do list, the person taking the order needs to know how to combine them so that the customer receives their meal at the requested time.

If, during a phone call, the waiter writes down the order on a piece of paper (which happens a lot), they must enter it manually to the POS (point of sale) system, often used by restaurants. Then the printed out order must be taken to the kitchen. The right timing is key because if the food is ready too early, there is a risk that it will get cold by the time the driver arrives. In some cases (e.g. 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 driver’s productivity will decrease.

If we assume that despite the difficulties, the food was ready just on time for the driver to pick 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 delivers it to the customer. But what if there are 2, 3, or 20 orders to pick up? How can they be managed? 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 taking the order usually loses contact with them, so the staff doesn’t know when the order will reach the right address. Has it arrived already? If not, when will that be? How soon can the driver pick up another order? If at this stage the customer calls with a polite question: “Where is my food!?”, the staff can only assure them that the driver “is on his way”. That makes the driver a key person in the entire delivery process. The driver has to check the destination and choose the best route. Navigation can help with that, but problems begin when many orders have to travel to several places simultaneously. What is the optimal route, and how to determine it? Which orders must be delivered first? Which customer is waiting the longest?

Papukurier’s research on a sample of 200,000 orders established that 10% of them included errors of some kind. An incorrect address is a very common occurrence – not only the apartment number but also the street, and even the town itself! Customers may give the wrong phone or floor number, or the restaurant’s employee may write down 5:00 p.m. instead of 1 p.m. Now let’s consider an example where the customer is not at the specified address. That starts the tedious process of trying to get in touch with them. 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 do you have to find the phone number or the address, but you also risk the consequences of violating the General Data Protection Regulation.

Settling with the driver is also an incredibly complicated process. It must include the number of orders broken down by different sales channels, the number of deliveries made by individual drivers, the listing of cash, card, and online payments, the driver’s remuneration including a refund for petrol, checking delivery times, verification of customer ratings and more.

Who is the solution for?

The target group of the Papu.io system are restaurants whose main source of income (over 75%) are deliveries. In Poland, there are 7,500 premises, which is 15% of all restaurants. There are as many as 150,000 of them in the USA. Papu.io automates the delivery process – orders sent to restaurants from external sales channels (portals, apps, phone or website orders) 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 they will be back. The owner can also check how customers evaluate the delivery and how long it took the driver to reach the right address, whether they were late, etc.

Papu.io makes it possible to settle each driver at any time (based on the delivery time, distance traveled, the number of orders delivered, etc.). Another element of the system is the application. The application can forecast how many deliveries the restaurant will have, for example, next Friday at noon, 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 their employee rotas. That’s extremely important. When too many employees work on a shift, deliveries bring in less profit. However, if there are not enough drivers, 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 to replace the person taking the order and 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 the one used in product manufacture. Due to the dispersion of customers and the B2B model, Papu.io is sold online 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,
  • the implementation stage, in which the system is launched at the customer’s restaurant,
  • the customer retention stage, where the company provides full after-sales service.

 

Territorial expansion beyond Poland is planned for the near future. From a technological point of view, the company is working on a new generation of forecasting mechanisms based on elements of artificial intelligence.

About the competition

Several dozen young companies applied to take part in the competition. Mantis Polska was the competition’s partner, and its organizers were Forum Media Polska and Appgration. Nineteen companies qualified for the second stage of the competition, and ten 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 Krzysztoporska 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 (Poznań University of Economics), 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 “Logistics a Quality” magazine) selected the top three projects:

FIRST PLACE: PAPUKURIER for the design of a system that automates 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 design of the notiOne locator

More about the competition: www.logup.pl

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Papukurier sp. z o.o.
ul. Sowińskiego 18A, 60-283 Poznań
tel. +48 506 199 047
kontakt@papu.io

NIP: 7792433088
REGON: 36202821600000
KRS: 0000567424
Kapitał zakładowy: 34 850,00 zł
Sąd Rejonowy Poznań – Nowe Miasto i Wilda
VIII Wydział Gospodarczy KRS