SAP Innovation Awards 2024 - 4312 - Corona Industrial S.A.S
PUBLIC
Entry Pitch Deck
Corona Industrial S.A.S
Ricardo Monsalve
Consumer Products, Construction, Manufacturing
Making the Invisible Visible:
Building a Transportation and Logistics
Goods-In-Transit Control Tower
Entry Pitch Deck
Corona Industrial S.A.S
Ricardo Monsalve
Consumer Products, Construction, Manufacturing
Making the Invisible Visible:
Building a Transportation and Logistics
Goods-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 2
Corona Industrial S.A.S
Bogotá, Colombia
Consumer Products, Construction,
Manufacturing
empresa.corona.co
10,000+
Corona Industrial S.A.S (Corona) is a Colombian multinational with more than 140 years of
business 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 Business
Divisions – Bathrooms and Kitchens; Surfaces, Materials and Paints; Industrial Supplies and
Energy; and Served Table – and two Commercial Units that are Corona stores and Commercial
Corona Colombia.
Corona has 21 manufacturing plants in Colombia, 2 in the United States, 3 in Central America
and 3 in Mexico, as well as 39 Corona Center sales points in Colombia, 5 Solutions sales points
in 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 a
relationship system and social and environmental sustainability plans in which our strategic
programs and projects are framed that seek to make efficient use of natural resources and create
positive impacts for society.
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
Corona Industrial S.A.S
Bogotá, Colombia
Consumer Products, Construction,
Manufacturing
empresa.corona.co
10,000+
Corona Industrial S.A.S (Corona) is a Colombian multinational with more than 140 years of
business 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 Business
Divisions – Bathrooms and Kitchens; Surfaces, Materials and Paints; Industrial Supplies and
Energy; and Served Table – and two Commercial Units that are Corona stores and Commercial
Corona Colombia.
Corona has 21 manufacturing plants in Colombia, 2 in the United States, 3 in Central America
and 3 in Mexico, as well as 39 Corona Center sales points in Colombia, 5 Solutions sales points
in 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 a
relationship system and social and environmental sustainability plans in which our strategic
programs and projects are framed that seek to make efficient use of natural resources and create
positive impacts for society.
CHALLENGE: SOLUTION: OUTCOME:
Making the Invisible Visible: Building a Transportation
and Logistics Goods-In-Transit Control Tower
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
3RD party carriers availability over 98%
of the time in less then 24 hours.
Reducing demurrage costs for moving
goods (e.g., loading, unloading).
98%
Corona Industrial S.A.S
~20% ~40%
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 aspired to have a central “Control Tower” providing
real-time visibility into the movement of goods, to track
and monitor shipments, optimize routes, lower the
carbon footprint, and ensure timely delivery.
Corona needed a central view of data from many
sources for better insight into actions on a 24/7 basis to
assess, which areas need attention.
Corona 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.
The end-to-end process provides excellent visibility
into order management, planning, freight order
status and payments, inventory and procurement
management, tracking and tracing, and analytics.
This solution enables Corona to find and engage
with the right carrier, which fits their requirements,
at the right time.
Corona is realizing many benefits and outcomes including
improving operational efficiencies, enabling real-time
visibility and control, realizing cost savings, addressing
compliance and regulatory requirements, and improving
customer satisfaction with a view on demand, on-time
deliveries, and proactive collaboration.
Corona has reduced the demurrage costs ~40%.
As a result, they optimize transportation planning,
maximize truck utilization, reduce empty miles, ensure
shorter lead times, improve load consolidation and
backhaul optimization, and achieve less fuel consumption
and emissions, which positively impacts the overall
supply chain efficiency.
Increased round trips for 3rd party carriers
vs. returning with empty or half filled
trailors.
Making the Invisible Visible: Building a Transportation
and Logistics Goods-In-Transit Control Tower
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
3RD party carriers availability over 98%
of the time in less then 24 hours.
Reducing demurrage costs for moving
goods (e.g., loading, unloading).
98%
Corona Industrial S.A.S
~20% ~40%
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 aspired to have a central “Control Tower” providing
real-time visibility into the movement of goods, to track
and monitor shipments, optimize routes, lower the
carbon footprint, and ensure timely delivery.
Corona needed a central view of data from many
sources for better insight into actions on a 24/7 basis to
assess, which areas need attention.
Corona 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.
The end-to-end process provides excellent visibility
into order management, planning, freight order
status and payments, inventory and procurement
management, tracking and tracing, and analytics.
This solution enables Corona to find and engage
with the right carrier, which fits their requirements,
at the right time.
Corona is realizing many benefits and outcomes including
improving operational efficiencies, enabling real-time
visibility and control, realizing cost savings, addressing
compliance and regulatory requirements, and improving
customer satisfaction with a view on demand, on-time
deliveries, and proactive collaboration.
Corona has reduced the demurrage costs ~40%.
As a result, they optimize transportation planning,
maximize truck utilization, reduce empty miles, ensure
shorter lead times, improve load consolidation and
backhaul optimization, and achieve less fuel consumption
and emissions, which positively impacts the overall
supply chain efficiency.
Increased round trips for 3rd party carriers
vs. returning with empty or half filled
trailors.
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 4
By implementing our control tower, Corona Industrial
is making what was previously invisible to us, now
visible, using this information to make agile,
high-volume transportation and logistics decisions.
For example, guaranteeing “round trips” to our
transporters, and delivering clear and precise
information on deliveries to our clients, provides
a single platform for all the stakeholders
to view based on their role.
Ricardo Monsalve
General Manager, Logistics and Transport - Corona Industrial
By implementing our control tower, Corona Industrial
is making what was previously invisible to us, now
visible, using this information to make agile,
high-volume transportation and logistics decisions.
For example, guaranteeing “round trips” to our
transporters, and delivering clear and precise
information on deliveries to our clients, provides
a single platform for all the stakeholders
to view based on their role.
Ricardo Monsalve
General Manager, Logistics and Transport - Corona Industrial
GLOBAL CHALLENGES BUSINESS CHALLENGES
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
Corona has 21 manufacturing plants in Colombia, 2 in the United
States, 3 in Central America and 3 in Mexico. They export products
around the world, including North America, Latin America, and
Europe. Transportation and logistics challenges include:
• Compliance with complex customs regulations, import/export
duties, trade policies, and regulatory requirements across
different countries, which can lead to delays, increased costs,
and potential issues.
• Shipping goods across long distances can impact freight
charges, fluctuating fuel costs, and customs duties, which
impacts the cost of goods, profit margins, and competitiveness.
• Visibility of risks including the need for the right carrier at the
right time, delays, damage, or disruptions, which require
strategic and contingent planning to mitigate potential supply
chains issues.
Corona needed a more holistic approach to monitoring and
collaborating with employees in cross-lines of business, logistics
partners, government agencies, and supply chain stakeholder to
ensure success and stay competitive in the global marketplace.
Corona had many business challenges with a goal to transform
logistics and transportation operations including:
• Reducing transportation costs.
• Gaining visibility into spend across different categories and
business units to identify savings opportunities.
• Accessing timely date-driven information to make decisions, based
on the facts associated with complex processes.
• Tracking and traceability including access to vehicle's GPS location
information.
• Integrating with SAP and 3rd party systems associated with the
supply chain.
• Enabling data from multiple sources that can impact Corona,
drivers, and carriers relationships and ongoing loyalty.
• Administering procurement and payment processes to ensure
payment to the drivers.
Corona addressed their challenges above by focusing in on key
performance indicators (KPI’s), benchmarks, and metrics for
continuous improvement and a best-in-practice approach.
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
Corona has 21 manufacturing plants in Colombia, 2 in the United
States, 3 in Central America and 3 in Mexico. They export products
around the world, including North America, Latin America, and
Europe. Transportation and logistics challenges include:
• Compliance with complex customs regulations, import/export
duties, trade policies, and regulatory requirements across
different countries, which can lead to delays, increased costs,
and potential issues.
• Shipping goods across long distances can impact freight
charges, fluctuating fuel costs, and customs duties, which
impacts the cost of goods, profit margins, and competitiveness.
• Visibility of risks including the need for the right carrier at the
right time, delays, damage, or disruptions, which require
strategic and contingent planning to mitigate potential supply
chains issues.
Corona needed a more holistic approach to monitoring and
collaborating with employees in cross-lines of business, logistics
partners, government agencies, and supply chain stakeholder to
ensure success and stay competitive in the global marketplace.
Corona had many business challenges with a goal to transform
logistics and transportation operations including:
• Reducing transportation costs.
• Gaining visibility into spend across different categories and
business units to identify savings opportunities.
• Accessing timely date-driven information to make decisions, based
on the facts associated with complex processes.
• Tracking and traceability including access to vehicle's GPS location
information.
• Integrating with SAP and 3rd party systems associated with the
supply chain.
• Enabling data from multiple sources that can impact Corona,
drivers, and carriers relationships and ongoing loyalty.
• Administering procurement and payment processes to ensure
payment to the drivers.
Corona addressed their challenges above by focusing in on key
performance indicators (KPI’s), benchmarks, and metrics for
continuous improvement and a best-in-practice approach.
PROJECT OBJECTIVES WHY SAP
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
Corona's project objectives aligned to the overall organization’s goals
Including:
• Streamlining the transportation management end-to-end
processes by integrating core systems for freight planning, carrier
selection, shipment execution, and tracking.
• Consolidating and analyzing spend data from various sources to
identifying cost-saving opportunities, and implementing strategies
to optimize procurement and sourcing processes.
• Enabling intelligent decision-making by leveraging data analytics
capabilities to provide actionable insights by using predictive
analytics to identify transportation routes, and potential risks.
• Strengthening collaboration with carriers and truckers by
leveraging the SAP Business Network to enable a real-time
information exchange, collaboration on procurement processes,
and supports improved relationship management.
• Improving customer satisfaction with accurate demand planning
and ensuring timely and accurate deliveries.
The Corona project team a digital transformation approach providing
advanced insights to a complex global supply chain was critical.
Corona chose SAP because it has a transportation and logistics
solution that is spreading in our country with other companies,
that will allow us to collaborate and integrate between many
organizations.
By using the SAP Business Network for Logistics and SAP
S/4HANA Cloud Transportation Management it guarantees a more
fluid native integration of logistics tools, including the SAP
Extended Warehouse Management (EWM) that we already
implemented in one of our operations in Mexico.
We consider that SAP gives us an excellent capability of scalability
for other regions and other operations, with the support, teaming,
and innovating together.
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
Corona's project objectives aligned to the overall organization’s goals
Including:
• Streamlining the transportation management end-to-end
processes by integrating core systems for freight planning, carrier
selection, shipment execution, and tracking.
• Consolidating and analyzing spend data from various sources to
identifying cost-saving opportunities, and implementing strategies
to optimize procurement and sourcing processes.
• Enabling intelligent decision-making by leveraging data analytics
capabilities to provide actionable insights by using predictive
analytics to identify transportation routes, and potential risks.
• Strengthening collaboration with carriers and truckers by
leveraging the SAP Business Network to enable a real-time
information exchange, collaboration on procurement processes,
and supports improved relationship management.
• Improving customer satisfaction with accurate demand planning
and ensuring timely and accurate deliveries.
The Corona project team a digital transformation approach providing
advanced insights to a complex global supply chain was critical.
Corona chose SAP because it has a transportation and logistics
solution that is spreading in our country with other companies,
that will allow us to collaborate and integrate between many
organizations.
By using the SAP Business Network for Logistics and SAP
S/4HANA Cloud Transportation Management it guarantees a more
fluid native integration of logistics tools, including the SAP
Extended Warehouse Management (EWM) that we already
implemented in one of our operations in Mexico.
We consider that SAP gives us an excellent capability of scalability
for other regions and other operations, with the support, teaming,
and innovating together.