SAP Customer Success Story | Transportation and Logistics | Chemion Logistik

Chemion Logistik: On the Right
Track with Be...
SAP Customer Success Story | Transportation and Logistics | Chemion Logistik

Executive overview

Company
Chemion Logistik...
SAP Customer Success Story | Transportation and Logistics | Chemion Logistik

Executive overview
Company

Precise logistic...
SAP Customer Success Story | Transportation and Logistics | Chemion Logistik

Executive overview
Company

Competitive edge...
SAP Customer Success Story | Transportation and Logistics | Chemion Logistik

Executive overview
Company

Fully automatic ...
SAP Customer Success Story | Transportation and Logistics | Chemion Logistik

Executive overview

One step ahead with SAP ...
SAP Customer Success Story | Transportation and Logistics | Chemion Logistik

Executive overview
Company

Key figures and ...
SAP Customer Success Story | Transportation and Logistics | Chemion Logistik

Executive overview
Company

Tighter and more...
Chemion Logistik

Executive overview

Even more KPIs

Company
Vision
Why SAP
Implementation
Solution
Benefits

CMP19629 (1...
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Chemion Logistik: On the Right Track with Better Decision Making

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Chemion Logistik GmbH is now benefiting from fully automatic extraction of key figures from different data sources, which allows it to run standardized and integrated IT-supported business analyses quickly and accurately. With this information, the company can make the right decisions and stay on track when it comes to planned business development. The SAP® solution portfolio provides the platform on which these analyses are run.

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Transcript of "Chemion Logistik: On the Right Track with Better Decision Making"

  1. 1. SAP Customer Success Story | Transportation and Logistics | Chemion Logistik Chemion Logistik: On the Right Track with Better Decision Making
  2. 2. SAP Customer Success Story | Transportation and Logistics | Chemion Logistik Executive overview Company Chemion Logistik GmbH Company Industry Transportation and logistics – logistics services Vision Why SAP Products and Services Third-party logistics, value-added services, facilities management Implementation Web Site www.chemion.com Solution SAP® Solutions SAP® BusinessObjects™ business intelligence solutions, SAP Data Services software, SAP Ramp-Up program Benefits Future plans Partner SAP Consulting Chemion Logistik GmbH is now benefiting from fully automatic extraction of key figures from different data sources, which allows it to run standardized and integrated IT-supported business analyses quickly and accurately. With this information, the company can make the right decisions and stay on track when it comes to planned business development. The SAP® solution portfolio provides the platform on which these analyses are run. 2
  3. 3. SAP Customer Success Story | Transportation and Logistics | Chemion Logistik Executive overview Company Precise logistics carefully tailored to customer needs Vision Why SAP Implementation Solution Benefits Future plans In the chemicals industry, logistics involves much more than the simple transportation of products and goods from A to B. Strict security standards and legal requirements must be observed in the storage, load transfer, and transportation of chemicals. This is especially true of hazardous materials such as pesticides. The process demands the utmost care, the best value-added services, and highly skilled employees who are fully competent in the processes involved. It also demands the right equipment and extensive logistics infrastructures covering warehousing, load transfer, and transportation. 2,000 industrial trucks For transporting chemicals Chemion covers the entire spectrum of logistics services in the chemicals industry and in associated industries. It develops and implements intelligent and sustainable solutions for logistics, carefully tailored to individual requirements. Optimized logistics processes mean greater savings for the customer, which in turn mean tangible rewards in terms of business success. Since it was formed by the Bayer Group in 2001, Chemion Logistik GmbH (Chemion) has offered all this and more. This highly innovative third-party logistics service provider is based in Leverkusen, Germany, and has branch offices in Dormagen, Krefeld, and Duisburg. It uses a business model based on three pillars: third-party logistics, valueadded services, and facilities management. With around 1,000 employees, Chemion generates total annual revenues of about €124 million. 3
  4. 4. SAP Customer Success Story | Transportation and Logistics | Chemion Logistik Executive overview Company Competitive edge: knowing where the company is positioned Vision Why SAP Implementation Solution Benefits Future plans Because of pricing pressures and tough competition in the logistics industry, Chemion’s top management needed to be able to plan and control business development and implement targets more effectively. An integrated, IT-based tool for reporting key performance indicators (KPIs) and offering powerful data analyses is the ideal platform for such planning. Until recently, however, Chemion was lagging behind in this area. Financial controllers had to extract KPIs – sometimes manually – from the various business applications and transfer them to Microsoft Excel where they could be analyzed. Then the controllers had to prepare the analyses in Microsoft PowerPoint and present them to the management. To ensure that its logistics processes continue to run smoothly, Chemion is constantly expanding its storage capacities and equipment pool and investing in the skills of its employees. It also pays close attention to internal processes. “Our internal business processes need to run quickly and efficiently too, which is why a modern and future-ready IT architecture is indispensable,” says Roger Christoph Boungou, head of IT at Chemion. This is why Chemion uses integrated SAP solutions. It manages business and HR processes using the SAP ERP application and the SAP ERP Human Capital Management (SAP ERP HCM) solution. Meanwhile, it uses the logistics functions of the SAP Supply Chain Management (SAP SCM) application to govern material flows along the entire logistics chain. “Effective business processes and a transparent, up-todate view across all key figures are vital in maintaining the competitiveness of our company.” Roger Christoph Boungou, Head of IT, Chemion Logistik GmbH 4
  5. 5. SAP Customer Success Story | Transportation and Logistics | Chemion Logistik Executive overview Company Fully automatic pooling and analysis of data Vision Why SAP Implementation Solution Benefits Future plans company selected a powerful combination of SAP BusinessObjects™ business intelligence (BI) solutions and the SAP Data Services software. These offerings provide a consolidated database for crosscompany, standardized, flexible, and applicationfriendly reporting and analysis processes. “The amount of manual work involved in preparing analyses, along with the disruptions resulting from transferring data across different media and systems, caused problems,” explains Boungou. “Processes ranging from data extraction, data analysis, and reporting right through to presentation were unsatisfactory and very time intensive.” Moreover, the possibility of making errors during data transfer increased the risk of inconsistencies. “One major advantage was that the software products could be integrated into our existing IT landscape without any problems,” says Boungou. Along with the SAP ERP application and the logistics functions of the SAP SCM application, Chemion also uses IT solutions from third-party providers for processes such as mail delivery, rail planning, and advertising. Chemion set itself a key strategic goal: to establish a central reporting platform that would offer standardized and ad hoc reports with the benefit of fully automated data extraction. To meet this goal the “The SAP BusinessObjects BI solutions have allowed us to establish integrated, IT-based processes for data extraction through to reporting, which in turn has improved the quality of our business analyses in the long term.” Roger Christoph Boungou, Head of IT, Chemion Logistik GmbH 5
  6. 6. SAP Customer Success Story | Transportation and Logistics | Chemion Logistik Executive overview One step ahead with SAP Ramp-Up Company Vision Why SAP Implementation Solution Benefits Future plans The coaching method used by SAP Consulting was a major factor in ensuring such swift implementation. It meant that employees in the IT and controlling departments could benefit from extensive user training and knowledge transfer at an early stage in the project. Coordinating closely with the individual departments, the IT department then established a business intelligence pilot application, which it modified and enhanced in stages, tailoring it to the needs of the BI users. The approach allowed Chemion to complete the installation rapidly and largely independently. “We were able to complete the introduction far faster than we planned, with the result that we came in below our budget targets and saved costs,” confirms a delighted Boungou. Chemion introduced the SAP BusinessObjects BI solutions and the SAP Data Services software in an SAP Ramp-Up program before the official market launch. This allowed the company to take early advantage of the functional and technological innovations and build vital internal know-how. Working closely with SAP Consulting, the logistics provider was able to implement and launch the new SAP solutions in just six months. This included defining a homogeneous data model, establishing the semantic layers needed to structure the business data, and creating the layouts for reports. “Participating in the SAP Ramp-Up program allowed us to benefit from the new BI functions and technologies even before market launch. And thanks to the SAP coaching method, we completed the implementation in just six months.” Roger Christoph Boungou, Head of IT, Chemion Logistik GmbH 6
  7. 7. SAP Customer Success Story | Transportation and Logistics | Chemion Logistik Executive overview Company Key figures and analyses: just a mouse click away Vision Why SAP Implementation Solution Benefits Future plans Processes are also a lot simpler for BI users in controlling, accounting, sales, and other operational units. They can use the SAP BusinessObjects Web Intelligence® software to call up standard reports on revenues and costs and on business results, as well as reports on capacity and productivity. Users can tailor the drill-down functions to return the precise information they need – right down to individual warehouses, products, and customers. Even before the start of the project, the benefits of the integrated IT processes for data extraction, KPI reporting, and business analyses were clear. Vital information from source systems is available virtually in real time for data queries and analyses. “Before, it could sometimes take days,” remembers Daniel Wagner, head of controlling. With just a click of the mouse, business intelligence users can now call up their reports and key figures via the central reporting platform at any time. It also means that executive managers can access an up-to-date overview of the company’s business situation at any time. The SAP BusinessObjects Dashboards software aggregates the relevant key figures and analyses and displays the information as clear graphs in a user interface. “With just a click of the mouse, managers now get an up-to-theminute overview of the company’s position, allowing even more precise planning and controlling of activities.” Daniel Wagner, Head of Controlling, Chemion Logistik GmbH 7
  8. 8. SAP Customer Success Story | Transportation and Logistics | Chemion Logistik Executive overview Company Tighter and more targeted business management Vision Why SAP Implementation Solution Benefits Moreover, the IT department and central controlling no longer have to worry about time-intensive routine tasks. Since business intelligence users can now create the reports needed for ad hoc queries themselves, IT colleagues are free to focus on strategic projects such as developing and providing innovative IT solutions. As for controllers, they no longer need to manually export key figures and prepare reports. Instead, they can fully concentrate on their core tasks: analyzing business KPIs and providing even better decision-making support to the executive management. With a consistent and valid database and the central and integrated BI platform, Chemion can now run more detailed and efficient business analyses faster and at higher quality than ever before. “The software means that we can identify developments such as sudden jumps in sales or unusual customer behavior patterns even earlier, allowing us to react in real time and make the necessary decisions,” says Wagner. The precise and incisive information about company performance also allows Chemion to manage its business activities more effectively. Future plans “Thanks to the consistent and valid data, we can run faster and higher-quality business analyses. We can now obtain an up-todate overview of company performance at any time, allowing us to make targeted improvements.” Daniel Wagner, Head of Controlling, Chemion Logistik GmbH 8
  9. 9. Chemion Logistik Executive overview Even more KPIs Company Vision Why SAP Implementation Solution Benefits CMP19629 (12/05) Future plans Copyright/Trademark | Privacy | Impressum Chemion has already achieved a great deal, and processes for data extraction and KPI analyses are clearly faster and more efficient. But that’s not all. Now, the company wants to drill down even further into operational KPIs and is looking to obtain key data on inventories, warehouse utilization, inventory turnover, and even deployed resources (such as locomotives, heavy goods vehicles, and container terminals). “We are confident that this will offer even greater insight, and will lead to more cost-effective business processes in operational areas that we can continuously improve,” concludes Boungou. 9
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