Blue Yonder > Case Studies > Bayer’s Digital Logistics Transformation

Bayer’s Digital Logistics Transformation

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Company Size
1,000+
Region
  • America
  • Europe
Country
  • Brazil
  • United States
Product
  • Blue Yonder’s transportation management
Tech Stack
  • Data tracking
  • Geo mapping
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Customer Satisfaction
  • Productivity Improvements
Technology Category
  • Platform as a Service (PaaS) - Connectivity Platforms
Applicable Industries
  • Pharmaceuticals
Applicable Functions
  • Logistics & Transportation
Use Cases
  • Supply Chain Visibility
  • Transportation Simulation
Services
  • System Integration
About The Customer
Bayer is a multinational pharmaceutical and life sciences company and one of the largest pharmaceutical companies in the world. Headquartered in Leverkusen, Germany, Bayer's areas of business include pharmaceuticals; consumer health; crop science and animal health. The company is a renowned innovator in the healthcare and agriculture sectors. Bayer's products and services are designed to benefit people by supporting efforts to overcome the major challenges presented by a growing and aging global population. The company is committed to the principles of sustainable development, and the Bayer brand stands for trust, reliability, and quality throughout the world.
The Challenge
Bayer, formerly Monsanto, identified the need to standardize its end-to-end transportation processes globally, which previously followed different practices across operating regions. The company's logistics processes required responsiveness to meet time-sensitive customer demands, a pressure that was intensified by the company’s continuing growth in its global markets. The critical need for standardization paired with seasonality challenges, road transportation challenges and lacking adequate tools and processes to provide visibility into logistics raised awareness around the need for a complete digital logistics overhaul. Bayer’s goal was to improve the customer experience that could consistently provide better information to their customers, while staying efficient.
The Solution
Bayer integrated Blue Yonder’s transportation management capabilities to modernize end-to-end logistics operations by optimizing costs via route consolidation and load optimization and industry-leading practices in supplier bidding and carrier contract management. Advanced technologies allowed Bayer planners to leverage new capabilities in mobility, data tracking and geo mapping, increasing their ability to make real-time decisions that maximize responsiveness. The transportation management platform, along with updated business practices, helped Bayer improve asset utilization by maximizing truck capacity and eliminating 1.4 million miles traveled by vehicles in Brazil alone, reducing their carbon footprint around the globe. Integrations with track and trace platforms provide real-time delivery information so customer service teams can answer questions in a single phone call, or even be proactive if unexpected changes occur to a delivery.
Operational Impact
  • Bayer was able to ensure employees are sharing consistent transportation practices and business rules throughout their 353 facilities in 69 countries.
  • Bayer streamlined routine carrier bidding events, reduced time to conduct bid analysis and enabled complex scenario modeling to ensure the most cost-effective strategy is selected for all new contracts.
  • They were even able to increase service levels by 3 percent, including carrier pickup, on-time delivery and carrier performance tracking metrics.
  • Through the digital platform, Bayer’s transportation planning, logistics optimization, transportation analytics and procurement automation ensure they’re providing a superior customer experience compared to their competitors.
Quantitative Benefit
  • 4% reduction in “cost to serve”
  • 7% improvement in asset utilization
  • 3% increase in service levels
  • Eliminated 1.4 million miles traveled by vehicles in Brazil alone

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