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Customer Snapshot

Delivering Success
from A to B,
and Beyond

1.35 M 

tons of goods
transported annually

 

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.

 

Company

Pañalon S.A.

Headquarters

Villarrobledo, Spain

Customer Website

www.panalon.com

Revenue

~€130 million

Number of Employees

~850

Implementation Partners

Novigo GmbH

Line of Business

Asset Management, Supply Chain, Information Technology

Industry

Logistics Service Providers, Travel & Transportation

Featured Products

SAP Transportation Management (SAP TM), SAP Event Management

History

Vineyards to shipyards

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.

     

  • 1961Marcos Montero Ruiz founded Pañalon in Villarrobledo, Spain.
  • 1970Industrial growth, particularly in petrochemical refining, prompted Pañalon to develop specialized transportation for petroleum products.
  • 1986Spain joined the European Economic Community (EEC), opening new markets for Pañalon.
  • 1988Pañalon began transporting industrial vehicles via specialized trucks.
  • 1989Pañalón began transporting granulated products in specialized tank trucks.
  • 1995Pañalon became the first Spanish transport company to earn an International Organization for Standardization (ISO) 9002 quality certification.
  • 1999Pañalon started a division specializing in multimodal transportation, transporting chemicals in containers that can be hauled by road, rail, or short sea shipping.

The Challenge

Growth brings logistical complexity

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.

 

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Recognizing the need to move faster…

Enter SAP

Moving beyond ERP

Pañalon has been a long-time customer of SAP, using the SAP ERP application to consolidate business data, streamline processes, increase data transparency, and improve their flexibility to meet customer demands.

 

The SAP Experience

Trust and partnerships

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.

 

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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.

Running Better

Constant, comprehensive visibility

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.

 

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Approximately 700 trucks all have computers onboard…

Benefits

Now running smarter

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.

 

With SAP ERP and SAP TM, Pañalon has full visibility of roughly 950 containers, tanks, trucks, and more. Every month, that means deeper insight and control over:

300

forwarding orders

 

300

freight bookings

and orders

 

300

settlement

documents

1,800

event messages

 

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Pañalon is faster and more flexible

Today

The insight to make critical decisions faster

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.

Journey Ahead

Real-time business model expansion

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.

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