Detailed knowledge about an enterprise’s own cost and earnings structure is increasingly becoming a key success factor for transport and logistics companies: Only service providers who know their most profitable products, transport routes, customers and partners in detail can align their business accordingly to make it more profitable and fly in the face of growing competition in the market.
Particularly in parcel shipping, individual process steps and costs are comprehensively documented through permanent scanning procedures. An overall analysis and assessment of this valuable information is nonetheless hampered in practice as the data generated is often distributed across various IT systems (logistics, finance etc.). A leading parcel and express service provider therefore took the decision to solve this entrepreneurial challenge together with Q_PERIOR using SAP HANA’s new technological potential. In a first step, the company developed an extensive process cost model for all shipment transactions. The technical implementation using in-memory technology from SAP enabled a detailed calculation of the contribution margin right down to the level of an individual parcel. This approach allowed the logistics company to conduct extensive profitability analysis of products, customers, partners and transport routes. The result is used as a control basis for Controlling, Sales and Marketing. Q_PERIOR provided support for the successful project from the technical concept right through to implementation.