Digital Transformation in Freight Operations: A Case Study on Sika Deutschland
Technology Category
- Networks & Connectivity - 5G
- Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
- Cement
- Transportation
Applicable Functions
- Logistics & Transportation
- Sales & Marketing
Use Cases
- Last Mile Delivery
- Time Sensitive Networking
Services
- Testing & Certification
About The Customer
Sika Deutschland GmbH is a German subsidiary of Sika, a global leader in the construction chemicals sector with subsidiaries in over 100 countries. The company specializes in the development and marketing of a wide range of industrial adhesives, from self-leveling fillers for substrate preparation on construction sites to industrial tile adhesives. The majority of its products are low-price raw materials like sand, cement, and gypsum, which are manufactured at its six locations in Germany. The Rosendahl plant, in particular, faces significant challenges in shipping these heavy yet low-value materials around the world, making its operations extremely price-sensitive and reliant on punctual deliveries.
The Challenge
Sika Deutschland, a leading supplier of industrial adhesives, faced significant challenges in managing freight operations at their Rosendahl site. The two primary concerns were freight rates and punctuality, both of which were crucial to meet customer requirements. As a heavyweight in the construction chemicals sector, Sika Deutschland had to ship low-price raw materials like sand, cement, and gypsum around the world, which often posed logistical challenges. Freight accounted for a high share of their total costs due to the heavy yet low-value nature of their products, making their operations extremely price-sensitive. The company needed to transport goods as cheaply as possible without compromising on delivery schedules. Any failure to meet delivery dates resulted in additional costs and operational turmoil. Sika Deutschland was also in need of a freight-forwarding partner for the US market that understood the regional requirements and could provide real-time updates on shipment status.
The Solution
Sika Deutschland partnered with Flexport, a digital freight forwarding company, to streamline its logistics processes along the East Coast trade route. Flexport's online platform offered a centralized location for all information, making it easy for both the sender and the recipients to access shipment details. The platform allowed Sika Deutschland to handle documents only once, storing them in a central location where everyone involved in the process could access and review them. This significantly reduced the time spent on administrative tasks. The platform also provided real-time tracking of shipments, which was particularly useful for Sika's customers in the US, where shipments typically spent four to five weeks in transit. The platform also simplified the handling of customs processes across different time zones. Flexport's team, known as the Flexport Squad, provided solution-oriented support, understanding Sika's specific requirements and working tirelessly to resolve issues such as costly storage fees due to extended stays in harbors.
Operational Impact
Quantitative Benefit
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