Bondalti: Transforming logistics processes to better manage transportation, yard operations, and carrier collaboration
How to reengineer logistics and carrier collaboration
A leading specialty chemicals and solutions company, Bondalti sought to reimagine its logistics processes. The SAP Transportation Management and SAP Yard Logistics applications as well as the SAP Business Network Freight Collaboration solution provide improved visibility and planning in transportation while integrating carriers for freight management and supply chain transparency.
| Industry | Region | Company Size |
| Chemicals | Porto Salvo, Portugal | 750 employees |
less time spent by trucks in the plants.
of carrier invoices received digitally, compliant, and error-free.
average reduction in transportation costs.
Director of Supply Chain and Regulatory Affairs, Bondalti
Improving logistics process management and planning visibility
With a history spanning more than 120 years, Bondalti has established itself as a leading Iberian producer of industrial chemicals. The company provides raw materials across a wide range of industries for the manufacture of numerous products of major importance to society. It also offers water treatment and recycling services that include engineering, design, and construction as well as maintenance, operations, and technical assistance. In green energy, the company is developing new green hydrogen plants and refining its capacity for lithium.
Bondalti operates multiple industrial units and focuses on innovation to deliver advanced chemical solutions for various industries. In its logistics chain, the raw material comes from suppliers to its port terminal and must then be brought by road to the plants. Up to 1,000 tons of the raw material can be moved in one day. This involves a lot of transportation that needs to be carefully planned and costs that need to be controlled.
The company wanted to improve the transparency of its planning process. It also sought to digitalize its manual approach and harmonize various legacy systems for logistics process management in its two countries of operations, Portugal and Spain. For example, Bondalti communicated transportation requirements to its carriers by e-mail or phone, and sometimes, there was no reply or a missed reply. The business also used Microsoft Excel spreadsheets for numerous logistics tasks, and employees decided on the best carrier to service a location based on information they held individually. This led to a decrease in operational efficiency and productivity. In addition, the lack of integration between systems resulted in difficulties accurately organizing information and supporting the company’s strategic objectives and decision-making.
Chief Information Officer, Bondalti
Using cloud solutions to strengthen the logistics core
Bondalti deployed three solutions to streamline its logistics activities. The SAP Transportation Management application on a private cloud lets the company manage transport planning and execution for the outbound flows from its plants. It has also started using the application to oversee the inbound road transport of one of its main raw materials between terminal and plant. Integrated with SAP Transportation Management is the SAP Yard Logistics application, which enables Bondalti to control its yard operations and help workers charged with security and loading the trucks.
The SAP Business Network Freight Collaboration solution, on a public cloud, allows the company to integrate a network of carriers for freight management and supply chain visibility. The carriers can enroll directly in SAP Business Network and collaborate with Bondalti as well as other shippers on subcontracting freight, dock appointments, and invoices, for example.
The combined software touches several points along the logistics chain, including commercial order fulfillment, carrier and client engagement, and production. It’s crucial for Bondalti that its logistics tools are linked to its financial and commercial data, so the software is integrated with its SAP ERP application. Given the large scope of the project, the company established key user groups and conducted training across several different departments and roles. This helped with the smooth execution of the project, which was successfully delivered in a short time frame of eight months.
Chief Information Officer, Bondalti
Standardizing and transforming logistics processes
The project helped Bondalti standardize its logistics processes and provide a single source of information across the logistics chain. The business has been able to align its systems with standard processes and employ resource-based planning. It has automated the planning process for optimal transportation plans and for yard management.
Approximately 100 employees are using SAP Transportation Management, and Bondalti can call on the application’s optimizer engine to propose the best carrier for a given location, rather than relying on employee knowledge. SAP Business Network Freight Collaboration, used by 50 employees, enables Bondalti to share information and transact with its carriers, increasing efficiency and transparency to strengthen the relationship between them.
More-efficient transportation oversight avoids extra cost to the company. Instead of multiple trucks arriving in the first hour of the morning, scheduled slots throughout the day decrease the wait time for the carriers. The amount of time trucks stay in the plants for check-in, loading, and checkout is reduced, which is better for safety and sustainability. Centralized processing and reporting allow the company to conduct automated settlement with its carriers at the end of the month, increasing efficiency in invoice handling and reducing invoice errors.
The digital transformation of Bondalti’s logistics has resulted in a performance rate of 80% on-time in-full delivery for outbound products, outpacing the industry benchmark. The transformation has improved the transparency, accuracy, reliability, and agility of its business processes. It has also inspired the digitalization of other processes, such as the self-checking application for the weighbridge machine in Spain. Truck drivers can now check in the freight order on a screen that automatically registers the truck’s weight and connects to SAP Yard Logistics in real time, replacing the old paper-based process.
Chief Information Officer, Bondalti
Furthering logistics efficiency and visibility
The essential next phase of the project will integrate the SAP Business Network Global Track and Trace solution to enable real-time shipment-execution tracking, automated notification of delays, and an assessment of the business impact from a delay. Bondalti intends to add more features of SAP Business Network such as enhancements to further automate settlement and improve visibility of its supply chain and order fulfillment processes. Also on its technology road map is the adoption of SAP SuccessFactors solutions to better manage HR processes and migration to SAP S/4HANA. Moving to SAP S/4HANA will be a game changer for the company, as it will strengthen integration not only with logistics operations but also across sales, procurement, production, and fulfillment.