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tons of goods
Safe and secure transport is critical for the chemical and automotive industries – that’s why European businesses trust Pañalon S.A. With the SAP Transportation Management application, they use data-driven planning to cut costs and increase efficiency across the supply network. The result is a competitive advantage for both Pañalon and their customers.
Asset Management, Supply Chain, Information Technology
Logistics Service Providers, Travel & Transportation
SAP Transportation Management (SAP TM), SAP Event Management
Deep in the heart of La Mancha, the world’s largest continuous region of vineyards, Marcos Montero Ruiz founded a family trucking company that specialized in transporting liquid agricultural riches like wine and olive oil. More than half a century later, Pañalon has grown into one of Europe’s largest specialty transporters of bulk liquids, powders, and granulated products for the chemicals industry, ensuring the safe passage of often dangerous materials by road, rail, and sea.
As a growing international company with an increasingly complex set of offerings, Pañalon needed to streamline processes to minimize costs and create logistical advantages for customers. Specifically, they needed to improve planning for multimodal operations by automating the organization of container master data, and the tracking and tracing of their own vehicle assets. Working with a legacy system developed in-house 20 years ago – it was time to bring the company’s technology up to speed with today’s business.
Recognizing the need to move faster…
Given the long and trusted relationship between SAP and Pañalon, SAP Transportation Management was the obvious choice to automate and integrate fleet and container management and tracking with the rest of the business. With the help of partner Novigo, SAP successfully delivered a proof of concept for supporting multimodal transport with SAP TM. The application was integrated with SAP Event Management, the sales and distribution and materials management modules for SAP ERP, and Pañalon’s own legacy ordering system.
Pañalon is building a powerful transportation network using the SAP Transportation Management solution
The result was a comprehensive transportation and logistics management system that could handle everything, from planning to order management, to the subcontracting of freight orders and booking, to settling orders and managing master data on containers, vehicles, and customers.
The SAP implementation helps create greater visibility into Pañalon’s operations. Using SAP TM and a container search function developed by Novigo GmbH, Pañalon can automatically track the location and contents of every container. The company can also collect data directly from their transportation fleet’s onboard computers with SAP Event Management. Data such as driver hours, loading and unloading times, and vehicle weight help provide a comprehensive view of fleet processes.
Approximately 700 trucks all have computers onboard…
Regardless of mode of transportation, Pañalon is now able to access and analyze pricing and performance data and proactively manage logistical events. For example, by closely monitoring fleet activity, Pañalon can be sure to reuse tank trucks for multiple shipments of identical chemicals, reducing the cost and time off the road required for cleaning.
With SAP solutions, Pañalon managers can aggregate information across the supply chain to make strategic decisions on how to improve business processes with the added knowledge of interrelated logistical events. Supply chain information can be easily searched, shared, stored, accessed, and linked to other relevant data and systems. Furthermore, integration with the legacy ordering system helps improve operations by adding order visibility to daily tactical operations.
Pañalon is faster and more flexible
The combination of SAP Transportation Management and SAP Event Management gives our planners the detailed information they need to fully control operations and better serve our customers. These tools allow us to be faster and more flexible, helping us adapt quickly to meet our customers’ needs. And that is a competitive advantage not only for us, but also for our customers.
— Miguel Ángel Díez, CIO, Pañalon S.A.
Pañalon manages their fleet of roughly 950 containers and vehicles with much greater ease using SAP Transportation Management. The company can automatically reconcile product names, unique identifiers and units of measure – increasing accuracy, improving visibility and efficiency, and reducing administrative costs. Plus, real-time access and insight into shipment data helps planners make critical decisions on scheduling and coordination faster.
Having optimized their multimodal transport operations, Pañalon is now benefiting from an expanded business model that combines the low cost of rail transport with the reliability of road transport. Through close analysis of data gathered for various modes of transport, the company is driving a 360-degree, global view of all logistics activities.
With real-time visibility into the status of all containers, including trucks, rail containers, ships, and barges, Pañalon is on the road to complete and fully synchronized information access and management that will continue to improve the daily tactical operations of their own supply chains, and in turn, do the same for their customers.