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Petrochemical
Significantly reduced Logistics Services Buying Lead time from a months to within a week time, optimized costs up to 2.5 % and complete transparency, visibility and audit compliances
About the Project
A leading petrochemicals conglomerate faced significant challenges while managing logistics services for over 25,000 different logistics lanes manually. The process was labor-intensive, prone to human errors, and resulted in revenue losses and audit issues. It was also commercially unviable.
One of the major challenges was conducting market rate enquiries over the phone once every quarter for various routes. Negotiations were manually done for around 1,500 primary lanes, which was then extrapolated for more than 25,000 secondary lanes. The entire process took at least 15-20 working days, and required manually updating excel sheets. Decision-making was highly dependent on the accuracy of manual work.
Our Solution
By leveraging our expertise and innovative technology, we were able to streamline the entire logistics services procurement process for our client. We collaborated with stakeholders and providers to gather requirements and design optimized workflows. Our flagship product, Logistics Management System (tEG 2.0), was then customized and implemented to digitize the process and improve efficiency. The integration with their Core ERP system (SAP) for vendor payments ensured seamless and accurate accounting.
Obtained Results
- Optimized direct costs by 3%
- Reduced Logistics Services contracting lead time by over 80%
- Achieved full audit compliance and complete transparency and visibility across the logistics channels
- Provided analytics dashboards and reports for better decision-making
Seamlessly integrated with ERP system (SAP) for one-touch information flow