From Outdated Systems to Seamless Logistics: The Cargobus IT Overhaul

The following case study describes the transformation of a parcel delivery service through the implementation of a modern IT infrastructure. The company in focus is Cargobus, a parcel and express delivery provider based in Estonia, operating across all three Baltic countries. It is a well-established enterprise with a strong reputation for rapid parcel delivery, leveraging passenger transport networks. After maintaining and operating an outdated IT system for years, the company recognized the urgent need for modernization to remain competitive in an increasingly demanding market.

By the early 2020s, Cargobus was experiencing significant operational challenges due to its outdated information system. Manual work was required at every stage of the process—from order placement to handover procedures—making operations time-consuming and inefficient. The system lacked user-friendliness, adding to the frustration of employees.

Additionally, growth potential was severely restricted due to the absence of proper integration endpoints, which had become a market standard. Prospective customers expected seamless API integration and bulk order uploads as a basic feature. Without these capabilities, sales negotiations often ended before they began, as no customer wanted to bear the burden of manual data input.

Logistics coordinators struggled to identify bottlenecks, managers lacked real-time performance insights, and the accounting team faced challenges in generating accurate reports on material flow. System crashes, particularly during peak hours, frequently brought operations to a standstill across all three countries. During peak holiday seasons, inefficiencies doubled order processing times. A transformation was no longer optional—it was essential.

Recognizing the need for change is one thing; executing it successfully is another. By the time the decision was made to overhaul the IT infrastructure, the company had already attempted several unsuccessful modernization efforts, which had drained significant financial resources. This history of failed projects left management wary of further investments. Questions arose: What if this project failed as well? What if, once again, resources were wasted with no tangible improvements? How could they ensure that the new system would meet business needs and drive future growth?

Despite these concerns, the company had an ambitious vision: to double its market share to at least 7% of the entire parcel delivery market. Market research conducted before the project indicated a strong demand for express parcel delivery services—something that mainstream operators were struggling to provide. Businesses were actively seeking a reliable niche partner to handle their time-sensitive shipments, and Cargobus was well-positioned to meet this need.

As a next step, Cargobus conducted a thorough search for a development partner capable of delivering the required functionality. After evaluating multiple solutions and proposals, they selected CityCarirer, a company with extensive experience in developing solutions for the postal sector and strong local references. With a reliable partner secured, the development process began.

During the initial analysis of business processes, financial operations, and information flows, it became evident that substantial work was needed. While route planning, resource allocation, and other core parcel delivery workflows were long-standing strengths of CityCarrier, the existing system fell short in critical areas such as order acceptance, handover procedures, and journey calculations.

Since Cargobus' delivery network was heavily reliant on inter-city coach lines, it was decided that the GTFS (General Transit Feed Specification) format would serve as the foundation for journey calculations—a unique approach in the parcel delivery sector. While initially complex, this framework provided a solid foundation for route planning and real-time parcel tracking. As a result, both senders and recipients began receiving precise delivery time estimates with an accuracy rarely seen in the industry.

Like many large-scale projects, this one had its highs and lows. The initial plan aimed to complete the transformation within 12 months, but this timeline proved unrealistic. The complexity of the parcel delivery information flow had been underestimated during the planning phase. A more thorough initial assessment and a phased implementation approach would have been beneficial. This was a key lesson learned.

Ultimately, the newly deployed enterprise-grade parcel delivery information system significantly streamlined operations and reduced manual workloads across the company. The system covered all aspects of the business, from label generation and payments to reporting and business intelligence. Order placement became simpler and more intuitive. Parcel acceptance was now a seamless process, with no more delays caused by system lag. Logistics teams could efficiently plan and execute delivery routes, sorting operations saw reduced error rates, managers gained data-driven insights into operational efficiency, and the accounting team finally had ERP integration and accurate financial reporting. Most importantly, sales teams could actively engage new clients, as all essential integrations were in place and fully functional.

Now, with some time passed since implementation, Cargobus remains highly satisfied with the results. The modernized system has successfully addressed long-standing operational challenges and provided a solid foundation for continued growth. Unlike previous attempts, this transformation has delivered tangible benefits, proving to be a success. The partnership with CityCarrier continues, with further development underway to incorporate the latest trends in the express and parcel delivery market.

This case study highlights not only the importance of modern IT infrastructure in logistics but also the necessity of careful planning, the right partnerships, and a strategic approach to digital transformation.