Digitalisation creates overview and reduces cost in the Supply Chain

The company produces, sells, and delivers products where transport makes up a large part of the costs. When information about a given transport is exchanged between the relevant parties (internal departments, customers, and suppliers), this was done using Excel spreadsheets. This meant that all information was sent back and forth in different versions of the spreadsheet, making it challenging to maintain an overview and optimize the efficiency of the individual transport, resulting in large (sometimes additional) costs.

At the same time, it was virtually impossible to determine the history of the individual cases, and when there is no documented history, there is no solid basis for estimating future requirements, costs and needs for similar tasks. The master data, which is the starting point for calculations and estimates in connection with the transport tasks, was also managed and used differently in the various units and departments in the company. The different ways of using and processing data caused transport costs to fluctuate from task to task. The historical data - which in many cases was inadequate – is also the basis for choosing suppliers and development of new products. And if the information is not valid and complete, both price and quality of future assignments will be affected.

The solution to the many challenges of data management, processing and sharing is a centralised digitalisation of the process, and the establishment of a common tool for handling the tasks. In practice, the IT solution consists of a consolidation of the many local Excel spreadsheets that were used to handle the tasks. And the consolidated solution is implemented at the enterprise level in the company's SAP ERP system, enabling all units and departments to use the same solution and the same data. The master data has undergone a thorough revision and consolidation and at the same time, the ownership of the master data is now clearly defined and placed in the organisation.

Very importantly, the way the users use the system, the workflows and the processes have also been clarified and consolidated, as it is important that all users use the system in the same way, so that data and history are of the highest possible quality. The company has also appointed a process owner who is responsible for communicating and ensuring the correct use of processes and system.

The solution has been implemented in one region, and the company is already seeing results in daily operation: Management in the unit now has a unique overview that allows them to make informed decisions on both a daily and a strategic basis. The rollout is ongoing in several regions and the value of the solution increases as more and more units and departments benefit from the data and information in the system. At the same time, the digital solution integrates with other systems in the organisation, so that other departments also join the digital journey, strengthening the overview and interaction between departments.

Digitalisation creates a better foundation for planning tasks as well as better estimates of price. The optimised handling minimises the risk of day fines and firefighting tasks, and this is reflected both in the bottom line and in the motivation of the employees.

kaastrup|andersen is responsible for scoping, IT development, change management and overall management of the project from start to end, ensuring that the solution is well implemented and works in the long term.