Lactalis Group (Bel Shostka Ukraine) digitized milk procurement processes with IT-Enterprise solutions

Objectives

Lactalis Group (Bel Shostka Ukraine) is part of an international dairy group operating in the agri & food sector. The company manages large-scale milk procurement, quality control, and supply processes that involve multiple teams and systems.

In 2019, Lactalis Group (Bel Shostka Ukraine), part of the international Lactalis Group, set out to unify processes related to milk procurement, reception, and quality control within a single digital environment. At the time, the existing solution used for milk reception covered only a limited scope of operations. Key processes - including transportation cost accounting, pricing, and integration with milk analyzers remained outside the system. In parallel, different teams relied on disconnected tools and manual workflows. Data was fragmented, duplicated, and required significant effort to consolidate. The company selected the IT-Enterprise platform to centralize and streamline these processes.

Project scope

The project team digitized workflows across multiple departments:

• milk reception at the cheese production facility
• raw materials department
• laboratory
• accounting

After implementation, all teams involved in these processes work within a single system that consolidates operational and analytical data in real time.

“Over the years, people get used to legacy systems. They become part of the production organism familiar, sometimes convenient, sometimes not, but tolerated. When the time came to replace it, it felt like a real shift in mindset. A different level, a different approach, new capabilities we couldn’t even imagine before. It wasn’t easy change never is. We had to dive deep ourselves and often support colleagues through resistance. But we made it.” — Dmytro Pikus, Head of Raw Materials Department, Bel Shostka Ukraine

Project development

In 2020, the company continued its transformation by expanding the use of the platform to additional processes. Further rollout is planned across other areas, including production and quality control.

Objectives

• increase control over milk quality assessment
• minimize human factor in laboratory analysis
• improve supply planning
• optimize transportation costs
• digitize pricing processes
• build a scalable system for accounting, payments, and quality control

Key results

• primary document data is available within hours instead of a full day
• time required to prepare supplier payment reports reduced by 80%
• calculation and allocation of milk procurement costs became 6× faster

Results

More accurate milk quality assessment

Previously, part of the laboratory data was entered manually, which created a risk of errors. During the project, digital tools were introduced to enable a “blind” analysis method — without operator bias, while maintaining full traceability of actions. Additionally, integration with measurement devices allows milk quality parameters to be determined automatically. As a result, the influence of the human factor was reduced, and accuracy improved.

Milk volume accounting

Milk volume at reception is measured using equipment, and actual weight is automatically calculated based on captured parameters. If discrepancies occur between declared and actual values, the system automatically generates deviation reports. This improves transparency and allows faster identification of inconsistencies.

Pricing digitalization

Milk pricing is calculated based on procurement costs, volume, and quality. Previously, these calculations were handled manually in spreadsheets. After implementation, all calculations are performed automatically, with data directly sourced from operational documents, eliminating duplication and errors.

Supplier interaction tracking

Information about suppliers — including farm conditions, livestock, and forecasted supply volumes — is captured directly in the system using mobile devices. This data is structured and accumulated over time, supporting better decision-making regarding supplier relationships.

“Any large company faces staff rotation…
…all the data needed for work is available in the system,” — Dmytro Pikus

Supply planning

Previously, supply planning was done manually. The system now generates plans automatically based on historical data and defined parameters. It also suggests optimal collection routes, which can be reviewed and approved by logistics managers.

Electronic transport documents

Transport documents are generated automatically before delivery. Each batch becomes fully traceable — from collection to final pricing. This ensures transparency and simplifies process control.

“...work has become significantly faster and more comfortable,” — Dmytro Pikus

Transportation cost management

Previously, procurement and transportation costs were collected from multiple sources and processed manually. Now, the system automatically consolidates all required data and performs calculations, significantly improving speed and accuracy.

Payment data integration

Payment data is imported automatically, enabling timely and accurate settlements with suppliers.

Impact

The project enabled the transition from fragmented processes to a unified digital environment for managing raw material data. This improved data accuracy, reduced reliance on manual operations, and created a foundation for further scaling and process development.