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Oracle Customer Success — Henkel AG & Co. KGaA

Henkel AG & Co. KGaA

Henkel Deploys Oracle to Unify Group-Wide Transportation Operations

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With Oracle Transportation Management, we have a group-wide IT solution that has enabled more efficient management of our transport operations across all business units and countries. It has increased our competitiveness, and will boost customer satisfaction and significantly reduce cost.

— Matthias Czaja, Corporate Senior Vice President, Henkel Global Supply Chain B.V. – Beauty Care

Henkel Increases Agility and Reduces Transportation Costs by Unifying Processes and Consolidating Transport Across Business Units on a Single Platform

Henkel is a major consumer and industrial goods group, with noted brands in detergents (Persil), beauty products (Schwarzkopf), and bonding agents (Loctite) which have obtained globally leading market positions. Operationally, the Germany-based multinational is organized into the three business units: laundry and home care, beauty care, and adhesive technologies. In recent years, Henkel has been expanding into new markets, a strategy which has greatly paid off, now with nearly half the company’s revenue being generated in emerging economies.

 
Challenges
  • Increase competitiveness in the consumer/industrial goods market by reducing transport costs and enabling faster responses to frequently changing customer requirements
  • Unify and streamline transportation and supply chain processes across three business units and 30 countries by implementing a modern, standards-based transportation management solution
     
  • Consolidate hundreds of transport service providers onto a single, integrated system to improve supply chain management and strengthen supplier relationships
  • Centralize the transportation planning function to increase efficiency and provide the necessary visibility to identify synergies across the business
  • Standardize and automate logistics processes and promote best practices and operational excellence throughout the group
Results
  • Increased business agility and competitiveness, and supported faster responses to fluctuating customer needs by deploying Oracle Transportation Management to transform disparate, localized transport management processes into a homogenous, efficient, unified system across 30 countries and 3 business units
  • Optimized routes and enabled better space utilization to significantly reduce transport mileage, fuel consumption, and carbon dioxide emissions—reducing freight cost between 3% and 8% per country
  • Reduced overall expenses for the entire transportation lifecycle—from procurement to payment—thanks to the digital, standardized, faster, and scalable processes enabled by Oracle Transportation Management
  • Gained the ability to reduce logistics supplier costs by leveraging Oracle Transportation Management to easily identify multidrop transports, where carriers discharge parts of the freight at different destinations
  • Automated transportation planning and dispatch processes to streamline operations and enable logistics coordinators to focus on managing exception cases where each minute matters, such as an order of special adhesives to be delivered immediately to a car manufacturer
  • Improved supply chain efficiency and relationships with key suppliers, and optimized transportation planning, by seamlessly integrating 200 transport service providers with the solution via electronic data interface or web portal access—anticipating the integration of a further 400 suppliers and 200 plant and warehouse units upon project completion
  • Reduced tender preparation time for freight purchasing from weeks to days on average, since all data that have to be collected—such as legal requirements in different countries, routes and distances—are readily available, while making tender preparation and execution fully transparent
  • Enhanced group-wide transport operations and reduced spend by enabling more efficient management of transportation planning across all business units and countries with Oracle Transportation Operational Planning—for example by automating transport mode and carrier selection
  • Provided visibility to identify synergies within and across the group’s business units laundry and home care, beauty care and adhesive technologies by harmonizing logistics processes in a centralized, Henkel owned shared service center
  • Standardized transport management processes across the group’s entire outbound supply chain to substantially increase efficiency, and paved the way for further standardization, for example covering tariff structures, and warehouse and carrier communication
  • Used robust data analytics from Oracle Transportation Intelligence to develop long-term transportation solutions that will further reduce cost, increase efficiency, and boost customer satisfaction
  • Coordinated business units on Oracle Transportation Management to drive operational excellence through simplicity and interoperability, while promoting best practices across all countries to support the group’s next wave of growth

 

Following a rigorous and independent review of software vendors we chose Oracle Transportation Management for its ability not only to enable substantial cost-efficiency gains through transport consolidation, but also to drive operational excellence throughout the group.

— Robert Meckel, Corporate Senior Manager, Henkel Global Supply Chain B.V.

Execution

“In a complex project environment with 3 business units: Henkel IT, Henkel Shared Service Center, and an external implementation partner, Flo Group, we were able to quickly implement and deploy Oracle Transportation Management in two major regions Europe and Asia.” - Matthias Kloth, Corporate Director, Integrated Business Solutions, Henkel AG & Co. KGaA


About Henkel AG & Co. KGaA

Headquarters

 
Düsseldorf, Germany

Employees

 
around 50,000

Annual Revenue

 
around US$20 billion

Founded in 1876, Henkel is a global leader in the consumer and industrial goods businesses and is one of the most renowned Germany-based companies in the global marketplace. Its shares are listed in the German stock index DAX.
 

Partners

To ensure a smooth and rapid implementation of its new transportation management system against tight project deadlines, Henkel engaged with Oracle Partner Flo Group. Flo Group demonstrated its flexibility to commence the project straight away, introducing Henkel stakeholders to key project personnel, and helped to ensure the success of the project within the short timeframe.
 

Published:  Apr 26, 2017