CHEMICALS

FERTILIZER SALES & DISTRIBUTION

€1.37 BILLION

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Borealis L.A.T

Digital transport logistics for fertilizers

Customer

This Austrian-based company is a subsidiary of the Borealis Group which is active in 120 countries and employs 6,500 people. The Group mainly produces polyolefins as raw materials for plastics, chemicals and fertilizer production. The backbone for this organization’s complex and challenging logistics comprises over 300 employees in eleven countries as well as warehouse capacities of over 700,000 tones in more than 70 warehouses across Europe.

We have achieved our goals: streamlining administrative processes, making these processes more transparent, and increasing the performance of our network.  

Zsolt Udvari, Supply Chain Manager
Borealis L.A.T 

Challenges

Strongly seasonal demand put considerable strain on Borealis L.A.T, the European market leader in fertilizer sales and distribution. Although production quantities are constant throughout the year, agricultural customers call for stock in relatively short windows – in springtime and late summer.

  • Decentralized logistics management (multiple production sites, warehouses, transport modes and customers)
  • No transparency in processes and freight purchasing
  • Failure to comply with Group purchasing guidelines
  • Tendering and transport management involved many manual steps and there was no integrated system
  • Limited number of carriers caused delivery shortages in peak seasons
  • Sub-optimal production site process flows

Solution

Centralized digitalization as a solution:

  • Tendering & Rate Management – Borealis submits tenders using Ticontract Tendering, and the fixed contracts of selected carriers are transferred to the Transporeon platform for transport assignment
  • Automated transport assignment with “best carrier” – this process considers current offers and market data, and makes available every single transport assignment
  • Fully-automated transport assignment with “no-touch order” – fixed prices for specific routes are pre-arranged with carriers; when a bid is accepted, the carrier receives the offer according to a predefined ranking or distribution key
  • Time Slot Management – assigned carriers can select free spots for fast delivery and collection
  • Carrier Performance Rating – to collect carrier performance data

Results

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CENTRALIZED LOGISTICS

Reduced internal effort and optimized freight purchase

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COST SAVINGS

On certain routes, freight costs have reduced by 10-35%

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PAN-EUROPEAN STANDARDIZATION

Defined purchasing regulations are being observed

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TRANSPARENCY

All transactions are visible and uniformly regulated Europe-wide