Alemea and Artoni: finding the best route to business growth, To transform itself from a regional transportation provider to an international logistics company, Artoni reengineered its business processes and replaced legacy systems with software from SAP
To transform itself from a regional transportation provider to an international logistics company, Artoni reengineered its business processes and replaced legacy systems with software from SAP. Using transportation and warehouse management functionality, Artoni boosted operational efficiencies and cut costs. By enhancing marketing effectiveness, the customer relationship management functionality is boosting top-line growth.
Key Challenges
Transform regional transportation business into international logistics service provider
Reengineer business processes to manage high volume shipments (700000 per months)
Deploy integrated business software to support optimized processes
Streamline transportation management
Integrate software with warehouse automation solution
Why SAP Was Selected
Exceptional scalability and flexibility of SAP® software
Ability to support internationalization and diversification of services
Extend SAP ERP application to the most strategic processes of the group's companies
Trust in vendor
SAP software support for transportation and logistics best practices
Low Total Cost of Ownership
Deployed software on time, within budget
Completed first deployment in just 5 months
Rationalized and simplified application landscape
Financial and Strategic Benefits
Reduced CO2 emissions through optimized transportation routes
Reduced operational costs through closer planning between logistics and transportation
Productivity (ratio between 100 kilos transported and hours worked) +30%
Cost per 100 kilos transported -10%
Storage space for goods to be transported -20%
Conversion rate for marketing leads +26%
(*) results from pilot project
QUICK FACTS
Industry (or Industries): Transportation and logistics
Revenue: €217 million
Employees: 600 direct, 3,000 subcontractors
Headquarters: Reggio Emilia, Italy
Web Site(s): www.artoni.com
SAP® Solutions and Services:
SAP Transportation Management, SAP Extended Warehouse Management, SAP Customer Relationship Management, SAP ERP, and SAP Productivity Pak applications, as well as SAP NetWeaver Portal component
Implementation Best Practices
Redefined and optimized business processes
Adopted ASAP methodology, PRINCE2 method, and COBIT IT framework for project management
Decreased execution time and reduced project risks using best practices
Collaborated with SAP development team on software deployment
Deployed e-learning courses to train users
Communicated project progress via portal
Narrative
At the beginning of the 20th century, men of the Artoni family hauled goods, building materials, and stones from railcars to customers over the cobbled streets of Reggio Emilia. Today, Artoni is an international transportation and logistics provider, moving freight by road, rail, and sea to clients throughout Europe. One key to the company's continued growth and success is the use of powerful transportation and warehouse management software from SAP.
Headquartered in northern Italy, Artoni is a family business that processes more than 700,000 shipments per month. To support its transformation from a regional shipping company to an international transportation and logistics enterprise, Artoni needed to reengineer and optimize its business processes. The firm also wanted to streamline its transportation and warehouse management methods to maximize efficiencies and enhance customer service levels.
Fuel for Change
Artoni's legacy software tools were unable to handle its growing transportation volumes or accommodate increasing requests for differentiated logistics services.
After considering several software products, the company chose the SAP® Transportation Management and SAP Extended Warehouse Management applications. The software packages offered exceptional scalability and flexibility as well as the ability to integrate with the company's existing automated warehouse system. Artoni also chose the SAP customer relationship management functionality to support its marketing efforts. The new software integrated well with the company's already-deployed SAP financial software, and the Artoni team trusted SAP's transportation and logistics expertise.
Smooth Road to Optimized Processes
With the support of its implementation partners, Artoni quickly optimized its business processes and deployed the new software - on time and within budget. The new logistics processes and software were operational in just five months. The warehouse management solution was integrated with the automated warehouse system within four months. The company began retiring the legacy and homegrown systems.
Using best practices supported by the ASAP methodology, the PRINCE2 project management method, and the COBIT IT governance framework and toolset, the Artoni team decreased project execution time and reduced project risk. Team members used the SAP NetWeaver® Portal component to communicate progress; collaboration with the SAP development team on the transportation and warehouse management solutions supported rapid deployment. Users were trained using the SAP Productivity Pak application.
Move to the Future
With a newly rationalized and simplified application landscape, Artoni realized dramatic business benefits. Optimized transportation routes helped reduce CO2 emissions, and closer integration between the logistics and transportation processes is improving operational efficiencies and reducing costs. For example, the volume of goods moved per hour rose by 50030% and the cost of transporting goods was cut by 10%. Storage space for goods to be transported has been reduced by 20%.
Marketing effectiveness also improved. Campaign execution is faster, reducing time to value. With enhanced timeliness and clarity of communications, the conversion rate for marketing leads is up 26%.
"In such a widespread, complex business transformation, having the right methodology, organizational structure, and communication is fundamental to project success," says Norberto Delendati, organization and IT director at Artoni. "With the help of our SAP software, we will continue optimizing our processes and adding new services to enhance customer satisfaction and support our ongoing growth".
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