Flexport Case Studies Digital Transformation in Freight Operations: A Case Study on Sika Deutschland

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	Digital Transformation in Freight Operations: A Case Study on Sika Deutschland Flexport

Digital Transformation in Freight Operations: A Case Study on Sika Deutschland

Flexport

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
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. Read More
About 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. Read More
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. Read More Log in to view content
Contents

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

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.

About 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.

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.

Impact #1	The partnership with Flexport has brought about significant operational improvements for Sika Deutschland. The real-time tracking feature of Flexport's platform has enhanced Sika's customer communications, providing customers with precise information about the status and arrival time of their shipments. This has reduced the number of inquiries from customers, saving the company valuable time. The central document management system has simplified administrative tasks, reducing the need for multiple document handling. The support from the Flexport Squad has also been instrumental in resolving issues promptly, preventing costly storage fees and keeping business operations smooth. Overall, Flexport's digital solution has enabled Sika Deutschland to maintain consistently high quality standards in their delivery processes despite their strong growth.

Impact #1

The partnership with Flexport has brought about significant operational improvements for Sika Deutschland. The real-time tracking feature of Flexport's platform has enhanced Sika's customer communications, providing customers with precise information about the status and arrival time of their shipments. This has reduced the number of inquiries from customers, saving the company valuable time. The central document management system has simplified administrative tasks, reducing the need for multiple document handling. The support from the Flexport Squad has also been instrumental in resolving issues promptly, preventing costly storage fees and keeping business operations smooth. Overall, Flexport's digital solution has enabled Sika Deutschland to maintain consistently high quality standards in their delivery processes despite their strong growth.

Benefit #1	24/7 access to time-sensitive documents, enabling efficient handling of customs processes across different time zones
Benefit #2	100% reduction in time spent manually tracking shipments, saving several hours each month
Benefit #3	Over two years of effective collaboration with Flexport, allowing Sika to focus on scaling their business

Benefit #1

24/7 access to time-sensitive documents, enabling efficient handling of customs processes across different time zones

Benefit #2

100% reduction in time spent manually tracking shipments, saving several hours each month

Benefit #3

Over two years of effective collaboration with Flexport, allowing Sika to focus on scaling their business

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Overview

Digital Transformation in Freight Operations: A Case Study on Sika Deutschland

Operational Impact

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