SAP Innovation Awards 2024 - 4312 - Corona Industrial S.A.S

Business Innovator and Industry Leader Winner: Corona Industries with 29 manufacturing plants, six divisions, and ~1500 trucks transporting goods each day needed to streamline and optimize their logistics operations by connecting their own fleet, and 3rd party carriers, to a digital supply chain network in support of customer demand. They deployed SAP Business Network for Logistics, SAP S/4HANA Cloud Transportation Management, private cloud edition, and SAP Integrated Business Planning enabling a seamless integration of logistics processes. This solution provides excellent visibility into order management, planning, freight order status and payments, inventory and procurement management, tracking and tracing, and analytics. As a result, Corona can engage with the right carrier, at the right time. ドキュメントをダウンロードする

PUBLICEntry Pitch DeckCorona Industrial S.A.SRicardo MonsalveConsumer Products, Construction, ManufacturingMaking the Invisible Visible:Building a Transportation and LogisticsGoods-In-Transit Control Tower
COMPANY NAME:HEADQUARTERS:INDUSTRY:WEBSITE:NUMBER OF EMPLOYEES:Company Information© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2Corona Industrial S.A.SBogotá, ColombiaConsumer Products, Construction,Manufacturingempresa.corona.co10,000+Corona Industrial S.A.S (Corona) is a Colombian multinational with more than 140 years ofbusiness history dedicated to the manufacturing and marketing of products for the home,construction, industry, agriculture and the energy sectors. It is made up of four BusinessDivisions Bathrooms and Kitchens; Surfaces, Materials and Paints; Industrial Supplies andEnergy; and Served Table and two Commercial Units that are Corona stores and CommercialCorona Colombia.Corona has 21 manufacturing plants in Colombia, 2 in the United States, 3 in Central Americaand 3 in Mexico, as well as 39 Corona Center sales points in Colombia, 5 Solutions sales pointsin Central America and a global supply office in China. Corona’s products, such as Ambiance,Gamma, Mansfield, and more, are exported to over 43 countries around the world.Corona has the production and distribution rights for American Standard for Latin America only.Corona is committed to sustainable development in social, economic and environmental terms.To achieve this, we have framed our strategy in four promises and we have developed arelationship system and social and environmental sustainability plans in which our strategicprograms and projects are framed that seek to make efficient use of natural resources and createpositive impacts for society.
CHALLENGE: SOLUTION: OUTCOME:Making the Invisible Visible: Building a Transportationand Logistics Goods-In-Transit Control Tower© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 33RD party carriers availability over 98%of the time in less then 24 hours.Reducing demurrage costs for movinggoods (e.g., loading, unloading).98%Corona Industrial S.A.S~20% ~40%Corona Industries with 29 manufacturing plants, sixdivisions, and ~1500 trucks transporting goods each dayneeded to streamline and optimize their logisticsoperations by connecting their own fleet, and 3rd partycarriers, to a digital supply chain network in support ofcustomer demand.They aspired to have a central “Control Tower” providingreal-time visibility into the movement of goods, to trackand monitor shipments, optimize routes, lower thecarbon footprint, and ensure timely delivery.Corona needed a central view of data from manysources for better insight into actions on a 24/7 basis toassess, which areas need attention.Corona deployed SAP Business Network forLogistics, SAP S/4HANA Cloud TransportationManagement, private cloud edition, and SAPIntegrated Business Planning enabling a seamlessintegration of logistics processes.The end-to-end process provides excellent visibilityinto order management, planning, freight orderstatus and payments, inventory and procurementmanagement, tracking and tracing, and analytics.This solution enables Corona to find and engagewith the right carrier, which fits their requirements,at the right time.Corona is realizing many benefits and outcomes includingimproving operational efficiencies, enabling real-timevisibility and control, realizing cost savings, addressingcompliance and regulatory requirements, and improvingcustomer satisfaction with a view on demand, on-timedeliveries, and proactive collaboration.Corona has reduced the demurrage costs ~40%.As a result, they optimize transportation planning,maximize truck utilization, reduce empty miles, ensureshorter lead times, improve load consolidation andbackhaul optimization, and achieve less fuel consumptionand emissions, which positively impacts the overallsupply chain efficiency.Increased round trips for 3rd party carriersvs. returning with empty or half filledtrailors.
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 4By implementing our control tower, Corona Industrialis making what was previously invisible to us, nowvisible, using this information to make agile,high-volume transportation and logistics decisions.For example, guaranteeing “round trips” to ourtransporters, and delivering clear and preciseinformation on deliveries to our clients, providesa single platform for all the stakeholdersto view based on their role.Ricardo MonsalveGeneral Manager, Logistics and Transport - Corona Industrial
GLOBAL CHALLENGES BUSINESS CHALLENGESChallenges and Objectives 1 of 2© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5Corona has 21 manufacturing plants in Colombia, 2 in the UnitedStates, 3 in Central America and 3 in Mexico. They export productsaround the world, including North America, Latin America, andEurope. Transportation and logistics challenges include: Compliance with complex customs regulations, import/exportduties, trade policies, and regulatory requirements acrossdifferent countries, which can lead to delays, increased costs,and potential issues. Shipping goods across long distances can impact freightcharges, fluctuating fuel costs, and customs duties, whichimpacts the cost of goods, profit margins, and competitiveness. Visibility of risks including the need for the right carrier at theright time, delays, damage, or disruptions, which requirestrategic and contingent planning to mitigate potential supplychains issues.Corona needed a more holistic approach to monitoring andcollaborating with employees in cross-lines of business, logisticspartners, government agencies, and supply chain stakeholder toensure success and stay competitive in the global marketplace.Corona had many business challenges with a goal to transformlogistics and transportation operations including: Reducing transportation costs. Gaining visibility into spend across different categories andbusiness units to identify savings opportunities. Accessing timely date-driven information to make decisions, basedon the facts associated with complex processes. Tracking and traceability including access to vehicle's GPS locationinformation. Integrating with SAP and 3rd party systems associated with thesupply chain. Enabling data from multiple sources that can impact Corona,drivers, and carriers relationships and ongoing loyalty. Administering procurement and payment processes to ensurepayment to the drivers.Corona addressed their challenges above by focusing in on keyperformance indicators (KPI’s), benchmarks, and metrics forcontinuous improvement and a best-in-practice approach.
PROJECT OBJECTIVES WHY SAPChallenges and Objectives 2 of 2© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6Corona's project objectives aligned to the overall organization’s goalsIncluding: Streamlining the transportation management end-to-endprocesses by integrating core systems for freight planning, carrierselection, shipment execution, and tracking. Consolidating and analyzing spend data from various sources toidentifying cost-saving opportunities, and implementing strategiesto optimize procurement and sourcing processes. Enabling intelligent decision-making by leveraging data analyticscapabilities to provide actionable insights by using predictiveanalytics to identify transportation routes, and potential risks. Strengthening collaboration with carriers and truckers byleveraging the SAP Business Network to enable a real-timeinformation exchange, collaboration on procurement processes,and supports improved relationship management. Improving customer satisfaction with accurate demand planningand ensuring timely and accurate deliveries.The Corona project team a digital transformation approach providingadvanced insights to a complex global supply chain was critical.Corona chose SAP because it has a transportation and logisticssolution that is spreading in our country with other companies,that will allow us to collaborate and integrate between manyorganizations.By using the SAP Business Network for Logistics and SAPS/4HANA Cloud Transportation Management it guarantees a morefluid native integration of logistics tools, including the SAPExtended Warehouse Management (EWM) that we alreadyimplemented in one of our operations in Mexico.We consider that SAP gives us an excellent capability of scalabilityfor other regions and other operations, with the support, teaming,and innovating together.