Supernova Award Category
Data to Decisions
The Problem
Across the globe, Monsanto had fragmented and siloed transportation processes supported by a variety of tools and technology. Processes included shipment planning and tendering via antiquated systems and leveraging manual processes including email, spreadsheets, and telephone. The lack of standardization resulted in data accuracy challenges, impacting the ability to effectively manage supply chain complexities and understand baseline transportation costs.
This lack of standardization impacted customer service. 70% of customer phone calls were to ask “Where is my truck?” and fragmented procedures made it impossible to promptly respond. Phone calls were made to the carriers but many times the shipment was delivered before the information reached customer service. These were missed opportunities that could impact sales.
In summary, Monsanto lacked the necessary standardized processes and technology to optimize its shipments and provide a consistent customer experience.
The Solution
Monsanto wanted to improve their delivery experience and consistently provide better information to their customers, while staying cost efficient and supporting its carbon neutrality objective. At the same time, it needed to standardize its global end-to-end transportation processes. After evaluating several providers, Monsanto determined JDA was the best partner to address their business needs and execute their global supply chain strategy. The program delivered JDA Transportation Management solutions to Brazil, Europe, North America, Latin America, and Asia. Cross-functionally and spanning all four commercial hubs, Monsanto’s Logistics Transformation project integrates JDA Transportation Management with Smart Logistics capabilities that enables sensor and analytics driven automation using an advanced logistics platform. These advanced capabilities and platforms include Last Mile Visibility, Differentiated Logistics Management, Logistics IoTs and Salesforce.
The results
Using JDA Transportation Management, Monsanto has been able to modernize end-to-end logistics operations and optimize costs by 8 percent via route consolidation, load optimization and industry-leading practices in supplier bidding and carrier contract management. Advanced technologies have also allowed Monsanto planners to leverage new capabilities in mobility, data tracking and geo mapping, which has increased the company’s ability to make real-time decisions that maximize responsiveness.
Additionally, the company has been able to streamline routine carrier bidding events, reduce time to conduct bid analysis and enable complex scenario modeling to ensure the most cost-effective strategy is selected for all new contracts. Each of these components contributes to Monsanto having more reliable and consistent delivery performance. Through the platform, Monsanto can ensure a superior customer experience in comparison to its competitors.
Lastly, the platform connects customer service teams to information they lacked access to in the past. 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. Since the JDA Transportation Management platform accounts for details, such as business hours when optimizing, Monsanto is easier to do business with and the customer satisfaction level has increased.
Metrics
The project exceeded business expectations on all 3 parameters of cost savings, customer experience & process standardization:
1. On track to deliver 3.5% annual freight savings & realized several million dollars in legacy system cost avoidance. During FY17, the project delivered expected cost savings by optimizing 136,000 loads across three regions
2. Real-time delivery tracking helped Customer Service drive first call resolution. On target to achieve real-time shipment visibility from < 10% to 90% by FY20
3.Using a unified data platform made automated sustainability reporting possible. Monsanto’s optimized shipments reduced CO2 emissions 8% per unit in row crops since FY15
4. Achieved an average of 85% process & product standardization across all regions with 100% system adoption. The platform is used by 1500+ Monsanto employees & carrier partners across 320+ ship-from locations around the world.
5. Reduced “cost to serve” by 4% by optimizing shipments by load and route & improving bidding and carrier contract management
6. Increased service levels by 3%, including carrier pickup, on-time delivery, & carrier performance tracking metrics
7. Improved asset utilization by 7% by using larger equipment types & loading more inventories into the same truck
8. Maximized truck capacity and eliminated 1.4M miles traveled by vehicles in Brazil alone, reducing their carbon footprint
The Technology
Implemented solutions:
- JDA® Transportation Manager
- JDA® Transportation Planner
- JDA® Transportation Modeler
- JDA® Logistics Procurement
- JDA® Business Analysis
- JDA® Transportation Mobile User
Implemented services
- JDA Consulting Services
- JDA Education Services
- JDA Cloud Services
- JDA CoE Services
Disruptive Factor
The digital economy is putting pressure on traditional supply chain models to conform to the “now” generation. Monsanto recognized this shift and can be considered an early adopter before the industry disruption began to take place.
Managing an active project focusing on multiple work streams, including seasonality timing constraints, added to this disruption. Being in the agricultural market, seasonality plays a huge factor in Monsanto’s supply chain and logistics operations. The company must meet time-sensitive customer demands across all global markets, and deal with complexities across key regions. For example, in Brazil, there are tax regulations to account for.
To address this, the team implemented JDA’s TMS in over 45 countries in less than 3.5 years. Monsanto saw a significant maturity on tool adoption, value, and ability to use data to make both operational and strategic decisions. This data is a critical component to the new Brazil Logistics Smart Center. The center displays information that enables proactive decisions which have a positive impact to the customer experience. Planners now leverage new capabilities in mobility, data tracking and geo mapping. This has improved asset utilization by 7% through maximizing truck capacity and eliminated 1.4M miles traveled by vehicles in Brazil. The reduction of Monsanto’s global carbon footprint correlates to this decrease in miles traveled.
Shining Moment
Monsanto has won several awards for this successful project, including the Frost & Sullivan Manufacturing Leadership Awards 2018 and the Supply & Demand Chain Executive 100 100 Top Supply Chain Transformations, with JDA. Internal awards include 2018 Monsanto IT Value Award – Customer Centricity, 2017 Monsanto ES&H Award, & 2017 Monsanto Global Supply Chain One Team Award.