An Agro-Chemical Company Cuts
$1.5M Monthly Costs with
SAP S/4HANA
Executive Summary
A leading manufacturer of agricultural chemicals, vitamins, and biochemical derivatives faced major inefficiencies in its import operations, lacking product tracking, struggling with inventory expiry, and incurring $150,000–$200,000/month in container rental fees.
Previously dependent on basic tools like Primavera, the company partnered with A5E Consulting to implement SAP S/4HANA. The solution streamlined the entire import lifecycle, from purchase orders to warehouse delivery, enabling complete traceability, a 50% reduction in manpower, and elimination of demurrage through automated alerts and FIFO inventory management.
Client Overview
Executive Summary
A leading manufacturer of agricultural chemicals, vitamins, and biochemical derivatives faced major inefficiencies in its import operations, lacking product tracking, struggling with inventory expiry, and incurring $150,000–$200,000/month in container rental fees.
Previously dependent on basic tools like Primavera, the company partnered with A5E Consulting to implement SAP S/4HANA. The solution streamlined the entire import lifecycle, from purchase orders to warehouse delivery, enabling complete traceability, a 50% reduction in manpower, and elimination of demurrage through automated alerts and FIFO inventory management.
Client Overview
The Business Challenge
Lack of product visibility
There was no tracking of which products were in specific containers among 100-150 weekly arrivals - containers would arrive at the port with no visibility into contents until physical opening.
Massive demurrage costs
$15,000 daily charges after a free 5-day port period, totaling $150,000-$200,000 monthly due to inability to prioritize container processing.
System fragmentation
Using disparate systems like Primavera without integration, created data silos that prevented complete tracking from purchase to delivery.
Inventory expiration losses
Products expiring during 45-60 day shipping cycles with no advance warning system, led to significant waste of temperature-sensitive agricultural chemicals
Manual process inefficiencies
Multiple employees were required for each step from purchase requests to delivery, with separate resources handling order negotiation, purchase orders, and sales analysis.
Hidden cost accumulation
The ability to track complete landing costs from initial purchase to final warehouse delivery made accurate pricing and profitability analysis impossible.
A5E’s Approach & Solution
A5E’s Approach & Solution
Key Outcomes & Business Impact
A5E’s Approach & Solution
Key Outcomes & Business Impact
Core Implementation Features:
Key Outcomes & Business Impact
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