Petro Chemicals
Significantly reduced Logistics Services Buying Lead time from a months to within a week time, optimized costs up to 2.5 % and complete transparency, visibility and audit compliances..
Challenge:
A leading petrochemicals conglomerate bought the logistics services for over Twenty Five thousand different Logistics lanes manually. This was a laborious exercise and prone to human errors and leading to revenue loss and audit issues. This was also commercially unhygienic.
The major challenge was that the market enquiry of rates was done over phone for various routes once in every quarter. Negotiations were being done manually for about 1500 Primary lanes which was again extrapolated for more than 25000 secondary lanes. The entire work used to take at least 15-20 working days with excel sheets manually updated. The decision-making was highly dependent upon manual work accuracy.
Solution:
Our team carried out requirement gathering sessions across Supply Chain Management Stakeholders and the Logistics service providers and arrived at process flows. We then configured, customized and implemented our flagship product tEG 2.0 to digitize and optimise their Logistics services procurement for all modes of transportation and integrated digital contract data seamlessly to their Core ERP system (SAP) for vendor payments.
Results:
- Overall direct cost-optimized up to 3%
- Achieved over 80% reduction in Logistics Services contracting lead time.
- Achieved full audit compliance
- Achieved complete Transparency and Visibility across the Logistics channel
- Provided Analytics dashboards & reports for better decision making
- Deep integration with ERP system (SAP) to enable seamlessly and one-touch information flow.
