Success Story BOS

4flow developed a customized, evolutionary stepwise solution

Growth targets and increasing internationalization presented the major challenge for BOS to increase the transparency of global delivery flows while ensuring supply chain cost efficiency. The company did not start directly with a highly developed comprehensive solution, but rather with a custom-made, evolutionary step-by-step solution. The objective is to gradually align the supply chain network for future growth while increasing delivery reliability and quality and reducing costs.

“4flow’s concept of integrated transportation management is perfectly suited to BOS,” said Heiko Kraemer, senior director supply chain international at BOS. "It enables us to gradually increase our supply chain maturity and to make it more future-oriented."

Development path for integrated transportation management

Using a step-by-step plan, 4flow brings customers closer to integrated transportation management and determines which path to embark on together. A company’s first milestones can range from supply chain management as top priority to focusing on reducing transportation costs.

Development path and milestones at BOS

Before the first implementation project began, BOS and 4flow drafted a development path without a fixed timeline, which outlined milestones and development steps. From the beginning, it was important for BOS to maintain flexibility in the speed and expansion of the transportation management solution’s steps to stay in tune with the company’s actual requirements.

"Success was achieved thanks to the cooperative teamwork with BOS," said Nadine Lehmann, director at 4flow management. "Together, we were able to optimize approximately 80 percent of the supplier relations and reduce over 20 percent of the transportation costs."

Development step 1 – START: Pilot project with selected European suppliers

In step 1, BOS selected some European suppliers for a pilot project. As a neutral partner, 4flow took over the operational management and coordination of all transportation stakeholders including suppliers, carriers, transshipment points and plants. For this purpose, all relevant transportation indicators and structures were collected and analyzed. Using the optimization software 4flow vista^® in a standardized planning process, the entire supply chain network was modeled, and optimization potential was identified and implemented.

Solid data quality creates a foundation and is sustainably generated during the process. In this way, real-time information and planning data can later be used to manage complex supply chain networks and identify possible cost savings. With a good deal of pragmatism and effort, the necessary transportation and supply chain data is collected, adjusted and analyzed within a short amount of time at the onset of the project.

Within nine months of this first step, 4flow implemented significant optimization potential for approximately half of BOS’ supplier relations, increased the reliability of the transportation chain on short notice and reduced transportation costs by more than 20 percent in the optimized supplier relations.

Development step 2 – CONNECT: Integration of all European suppliers and overseas transportation

BOS was convinced by the results of the pilot project. In the second step, all European supply lanes and sea transportation were centralized. Moreover, the automotive supplier introduced invoicing and freight cost transparency as additional services. 4flow also identified further optimization potential and valuable support for budget planning. Thanks to real-time transparency, the delivery performance was further increased, while transportation costs were reduced by an additional 13 percent and processes were further digitized.

Development step 3 – SMART: Network transformation

In June 2020, BOS decided to start the next phase, which was focused on the implementation of new network structures. 4flow was selected to carry out a study to plan a cost-optimized set up for transshipment and warehouse locations in Europe. Identified potential of up to 20 percent prompted BOS to decide for implementation. The nine-month project includes support for both service tendering and the subsequent implementation of new network structures.

"We convinced our management with clear results", said Heiko Kraemer. “Even during the acute phase of the coronavirus pandemic, the added value of 4flow's stepwise solution was visible. We were able to act proactively, implement quick measures and avoid unnecessary deliveries and transportation costs."

Development step 4 – DIGITAL: Expanding digitization

The next step is currently being planned. There are already some first ideas, such as using a digital twin that enables the status, position and expected arrival time of shipments to be transmitted in real time. In addition, connecting the BOS ERP to 4flow vista® would result in a highly developed solution that initiates automated delivery processes and enables proactive transportation management.