{"id":15873,"date":"2019-11-13T09:14:29","date_gmt":"2019-11-13T09:14:29","guid":{"rendered":"\/?page_id=15873"},"modified":"2025-07-09T16:36:12","modified_gmt":"2025-07-09T20:36:12","slug":"lanxess-uses-odysseys-transportation-management-systems","status":"publish","type":"resources","link":"https:\/\/www.odysseylogistics.com\/why-odyssey\/case-studies\/lanxess-uses-odysseys-transportation-management-systems\/","title":{"rendered":"Lanxess embraces the future one step at a time"},"content":{"rendered":"\t\t
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Case study<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Lanxess embraces the future one step at a time<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tHow one manufacturer leveraged its long-term managed transportation relationship to gain access to top-of-the-line transportation management systems, carrier options, real-time cost data and end-to-end supply chain visibility.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Client background<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Given the opportunity, most organizations would prefer to focus on what they do best and leave the non-core responsibilities for reliable, reputable third parties to handle. In the real world, however, most companies have to cover myriad functions that they don\u2019t really have the resources, expertise, or skillsets to manage properly.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Challenge<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tWhen global chemical producer LANXESS realized that managing its North American logistics and transportation in-house was becoming too burdensome, it sought out a managed transportation provider to help fill in some of the \u201cblack holes\u201d in its supply chain.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tFor LANXESS, \u201ccore business\u201d means developing, manufacturing and marketing chemical intermediates, additives, specialty chemicals and plastics\u2014not managing the movement of its freight throughout North America. \u201cWe invest in production and manufacturing,\u201d says Eric Smith, director of logistics, \u201cand not so much in logistics and related systems.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tWith 11 different business units in North America, LANXESS ships products and runs warehouses across the continent. It also imports materials from overseas that it distributes within North America\u2014a process that incorporates both transportation and warehousing. To get its products to its customers, the manufacturer utilizes a combination of rail, International Organization for Standardization (ISO) tanks, bulk trucks and package trucks\u2014all of which are outsourced because it doesn\u2019t own its own fleet.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tRewind the clock back about 10 years and LANXESS, which has about 15,400 employees in 33 countries and is represented at 60 production sites worldwide, was procuring its own freight, managing its own transportation routing through its own transportation management system (TMS), and was working with a third-party provider to audit and pay its carrier freight bills.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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This arrangement created some major visibility gaps for the manufacturer, and particularly in terms of aligning freight audit and payment functions. A LANXESS business unit that needed specific customer\u2019s freight expenses, for example, had to wait while the data was gathered, reviewed, and disseminated. The resultant reports were spreadsheet-based and included scores of tables and spreadsheets that weren\u2019t especially user-friendly.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\n\t\t\t\tDue to a communication gap, figuring out how much we were actually spending on freight was somewhat of a black hole. It was taking a lot of data cleansing and back-office work to figure out our true transportation costs.\t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\tEric Smith, Director of Logistics
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Handing over to a third party<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Producing and transporting chemicals through the supply chain safely and efficiently can be complex, especially when moving hazardous cargo. For example, chemical logistics requires detailed security plans, specialized equipment, a network of qualified, reliable suppliers and full supply chain visibility.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\u201cBased on the hazardous nature of the commodities we\u2019re shipping, we need to have transportation security plans in place for certain products,\u201d says Smith. Other key requirements include hazmat certifications and tanker endorsements for drivers; the right personal protective equipment (PPE) for those operators; and the proper vetting of carriers to ensure that they understand the hazardous nature of the chemicals.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\u201cA lot of times, drivers are required to get up on top of the tank trucks and hook hoses up to the equipment,\u201d Smith explains, \u201cso it\u2019s critical that we have good carriers that are vetted and that understand the nature of the product in order to ensure everything is done safely.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Ready to offload its non-core logistics and transportation operations to a reliable third party, LANXESS considered about nine potential partners. Only two of them focused on the chemicals industry, and\u00a0Odyssey Logistics<\/a>\u00a0was one of them. \u201cThe rest were more involved with consumer goods and other commodities,\u201d says Smith.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\n\t\t\t\tBased on the special nature of chemical transportation, and the precautions that must be taken with these shipments, we had a higher comfort level with Odyssey.\u201d\t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\tEric Smith, Director of Logistics
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\n\t\t\t\t\t\t\t\t\tFor the implementation, LANXESS put together a project team and brought in a consultant that was familiar with SAP\u2014the manufacturer\u2019s ERP system\u2014and Odyssey\u2019s TMS platform. That consultant proved especially valuable during implementation, particularly when it came to sharing information and requirements across SAP and the TMS.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\u201cWe got a very customized solution that fulfilled all of our needs,\u201d says Smith. \u201cImplementation was very smooth and we didn\u2019t miss a beat when we flipped the switch to turn on our managed transportation solution.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Continuous improvement<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Today, when a LANXESS business unit calls to find out freight costs for a particular customer, Smith\u2019s team can pull up that data and provide it within minutes, and with minimal effort. Using filters for a certain time period, for instance, it can review all of a customer\u2019s shipments during that time, and see all of the costs\u2014from the line haul to the fuel charge to any accessorial charges.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\u201cWe can then turn around and provide that level of detail to the business unit,\u201d says Smith, \u201cwhich uses it for general decision making, including the freight component of pricing decisions.\u201d\nBecause it now has high visibility into its freight spend, LANXESS has also improved its freight payment reporting processes. When it imports ISO tanks from overseas, for example, those tanks may sit in holding yards or \u201cdepots\u201d until a customer places an order. Lengthy stays used to result in higher storage charges, but now the manufacturer can clearly see whether it\u2019s turning those tanks as quickly as it should.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\u201cIf we have specific tanks that have been sitting for months, accruing storage charges,\u201d says Smith, \u201cwe now can identify those much faster and recommend moving them out as soon as possible.\u201d As for the third-party freight audit process that LANXESS once relied on, Smith says it\u2019s been replaced by a more streamlined system that goes directly through its managed transportation provider.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\n\t\t\t\tOdyssey\u2019s freight audit department is constantly scanning invoices and picking up on issues like duplicate invoices from freight vendors. We\u2019ve seen a lot of cost avoidance over the years from that freight audit technology alone.\t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\tEric Smith, Director of Logistics
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Real-time data and intelligence<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Through its managed logistics services unit, Odyssey Logistics & Technology today manages both inbound and outbound logistics across North America for LANXESS. Those managed services include transportation procurement, establishing rates, freight tendering, and freight payment processing for both truck and rail.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Since aligning with Odyssey, LANXESS has also seen its transportation costs decrease\u2014a benefit that Smith attributes to the provider\u2019s broad network of carriers and collective transportation spend. \u201cAs a mid-sized shipper, we could only manage so many carriers, not all of which are strong in every lane,\u201d Smith explains.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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With Odyssey, the manufacturer is now aligned with carriers that can handle its freight efficiently. Its also no longer forced to take unattractive lanes along with the lanes that it really desires in order to move its freight. \u201cWe also have the added benefit of being part of a much larger pool that has $1 billion in transportation spend,\u201d says Smith.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Over the last two years, LANXESS\u2019 managed transportation provider has been tweaking its data and reporting to the point where the manufacturer no longer has to run any internal reports or create data sets to use for freight reporting. Using Odyssey\u2019s online \u201cProject Insight\u201d tool, it can capture relevant statistical data from the provider\u2019s TMS, from its own ERP, or from its clients\u2019 ERP systems.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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LANXESS is using Odyssey\u2019s technology platform to gain real-time data and intelligence for company shipments. It has access to information on historic costs, costs in aggregate by customer, spend with a particular carrier, spend by a particular mode, freight costs and other data points.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\n\t\t\t\tAll of the pertinent information is right at our fingertips. The application has filters that we use to customize the data set that we\u2019re viewing, slice and dice it, and get whatever information we need.\t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\tEric Smith, Director of Logistics
LANXESS <\/cite>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Teamwork and collaboration count<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tMoving to a managed logistics arrangement usually requires a digital transformation. That, in turn, requires a solid partnership and continuous improvement mindset. For example, LANXESS is using Odyssey\u2019s weather-mapping tool, but has requested a few changes to make it more valuable based on internal feedback from its various business units. Odyssey has taken LANXESS\u2019 suggestions into account, incorporating feedback and making improvements to meet its specific needs\u2014and ultimately make it more beneficial for other shippers.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The end result is a partnership that works both ways to deliver. While Odyssey brings its insights, expertise, and network to the table, LANXESS brings its collaborative spirit on solving complex logistics challenges that are unique to its business.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\n\t\t\t\tOur managed transportation relationship ensures that we always have best-in-class transportation management systems to utilize.\t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\tEric Smith, Director of Logistics
LANXESS <\/cite>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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To shippers interested in a managed transportation relationship, Smith says it\u2019s best to approach it from a partnership standpoint versus just passing transportation planning and procurement responsibility off to a third party in hopes that it will handle the task well.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u201cIf you want to just sit back while someone else handles the planning, then you\u2019re setting yourself up for failure,\u201d says Smith. \u201cFor managed transportation to work well, there really needs to be a partnership in place, with both parties working together, sharing information, dedicating resources, and ensuring good communication and information flow.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Full Article Via\u00a0Logistics Management<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Ready to connect?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Get in touch with one of our multimodal logistics experts to drive your business forward.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tTalk to an expert<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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How one manufacturer leveraged its long-term managed transportation relationship to gain access to top-of-the-line transportation management systems, carrier options, real-time cost data and end-to-end supply chain visibility.<\/p>\n","protected":false},"author":2,"featured_media":22910,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"_links_to":"","_links_to_target":""},"class_list":["post-15873","resources","type-resources","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\nLanxess embraces the future one step at a time - Odyssey Logistics<\/title>\n<meta name=\"description\" content=\"LANXESS leveraged its long-term managed transportation relationship with Odyssey to gain access to top-of-the-line transportation management systems\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.odysseylogistics.com\/why-odyssey\/case-studies\/lanxess-uses-odysseys-transportation-management-systems\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lanxess embraces the future one step at a time - 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