Transwide case study: Evonik

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Evonik is a leading industrial group, active in the Chemicals, Energy and Real Estate markets. Evonik is focusing on technology and quality leadership, has activities in over 100 countries and employ 43,000 people.

Project key figures:

Wesseling plant
(base chemical manufacturing)
330 000 m2 total area
1,57 Mio t/year
40 000 transports/year
14 production facilities
140 carriers

Evonik- Initial Situation:

Trucks waiting time- 6/8 hours
(up to 20h in specific cases)
high demurrage costs
over 1 FTE ( Full Time Equivalent) overtime needed everyday
(even Saturdays during peaks)
Delays in deliveries to customers
 

Initial conclusion:

More parking place needed
More loading points needed
Or find a suitable time slot booking tool
 

Vendors selection:

After engaging in in-depth market research, Evonik identified its operational needs to achieve. Evonik ranked the vendors according to their ability to fulfil their requirements: why, what, who, how?.

Market offerings' comparison

User friendly service: Transwide [Yes], Company One [No], Company Two [No]
LP book directly from transport request in slot: Transwide [Yes], Company One [Yes], Company Two [No]
Cancellation of loading time entries possible by Evonik: Transwide [Yes], Company One [No], Company Two [No]
Change in loading time entries on the same day possible: Transwide [Yes], Company One [No], Company Two [Yes]
KPI monitoring: Transwide [Yes], Company One [No], Company Two [No]

Furthermore, Transwide had 3 unique advantages:

Transparent and acceptable costs
No hardware installation whatsoever as Transwide is available through an internet secured access
No software installation on Evonik and carriers premises on local pcs or servers
35% of Evonik's transport providers were already working with Transwide.
 

Project implementation:
Phase 1: Situation analysis
Phase 2: Onboarding of carriers
Phase 3: Registration and training
Phase 4: Operational activity

Phase 1.

Creation of Project team, lead by one Project Manager from Evonik and one Project Manager from Transwide
The Project Team investigated the plant, gathered information about the logistics operations ( number of loading bays, resources, rules) and IT infrastructure (ERP, communication channels)
The Project Team drafted the twSlot blueprint, based on Evoniks operational needs

Phase 2.

Evonik identified its carrier list with contact details and its own internal user list including training needs and authorisation levels
Evonik communicated their new process for slot booking and the anticipated start date to transport providers and internal users
Transwide onboarded to its platform the 140 carriers (carrier list)

Phase 3.

Transwide registered in total 50 Evonik users and all external users
Evonik and Transwide agreed on the go-live date and the training schedule
Transwide Project Manager came on site to give the training to selected key users

Phase 4.

Ramp up: The system is up and running
Carriers started booking their time slots on Transwide's web portal before arriving at Evoniks site

According to Evonik the main benefits of twSlot are:

Increased operational efficiency

Decreased amount of problem rate at loading/unloading 48% to 15%
Increased visibility of logistics activity and better efficiency at Planning and Managing the human and mechanical resources on site: Increased quantities loaded with the same workforce and equipment by about 10%
No truck waiting time, demurrage cost avoided
Increased customer satisfaction through strong reduction of delayed shipments
81% of all in/outbound slots are currently booked using Transwide.

Positive financial impact: Costs down by 70%

A fast ROI (within six months) due to low up-front costs, volume based pricing, quick implementation and tangible savings
One FTE (Full Time Equivalent) saved and now available for higher value tasks (Reduction of 10h overtime per day to 0h)
Total reduction of demurrage costs
Fact based negociation between shipper and carriers based on shared KPI