BAYER ’ S DIGITAL TRANSFORMATION JOURNEY
In 2010 Bayer Italy undertook the challenge for a transparent supply chain . The need to change the software for pre-invoicing transport costs offered the opportunity to challenge the scope : to embrace partners and customers in a collaborative ecosystem . The first step was to grant a fully automated Transport Management System ( human intervention only for exception ) able to calculate costs for 200,000 deliveries per year to about 20,000 customers in a widespread network of 300 wholesalers , over 11,000 pharmacies and parapharmacies , 3,500 hospitals , laboratories and nursing homes , 3,000 retail outlets . Once the first goal was attained , Bayer moved to an extended solution , beyond the concept of interface : a collaborative cloud platform able to dialogue natively with external actors , whatever IT language would have been used . At that time , this was a breakthrough in “ track & trace ” systems : Bayer moved from paper documents to digital Delivery Documents and Proofs of Deliveries tackling every kind of issue in the between .
Cybersecurity was not affected by the adoption of a cloud solution , since the legacy system let in only defined information following a stringent exchange protocol granted by an information security 3rd party .
THE FOUR BENEFIT AREAS
We can say Bayer has identified four benefit areas : the first benefit is referred to a full automated transportation costs calculation ; with this system 1 person can handle about 20.000 customers and 200.000 deliveries per year , without it about 7 employees would be needed and we ’ d have however a lower level of accuracy . The second benefit is that , together with the track & trace of deliveries , this system also allows to detect exceptions and to send an automatic alert to the right person . Third benefit : this system is multichannel and multicompany - – Bayer Group has different companies operating in different fields and a wide range of suppliers – and enables collaborative practices through the supply chain . Finally , the fourth benefit is a business intelligence dashboard to check performances together with the possibility to simulate different distribution scenarios , e . g . moving a warehouse or increasing / reducing the number of warehouses , considering the impact in terms of costs and service level .
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