Multimodal transport and SAP S/4HANA: lower costs, more efficiency and sustainability

According to a survey by the National Transportation Confederation (CNT), 65% of cargo in Brazil is still transported by roadmaking the country highly dependent on this mode. However, this dependence brings with it significant challenges, such as high operating costs and considerable environmental impact. So how can we make logistics operations more efficient and sustainable?

The answer lies in optimizing multimodal transporta model that combines different modes (road, rail, water and air) to optimize routes and resources. However, coordinating the complexity of this approach effectively requires advanced technology and an integrated vision of the logistics chain.

This is where the SAP S/4HANAthe ERP (Enterprise Resource Planning(Enterprise Resource Planning) system from SAP. Developed to operate in the cloud and with in-memory processing (in-memory computing), it enables real-time analysis, process automation and total integration of logistics management.. With SAP S/4HANA, companies can reduce costs, increase efficiency and align themselves with the best environmental practices, making operations more strategic and competitive.

In this article, we will explore the concept of multimodal transportation, the current challenges the industry and how SAP S/4HANA can be the key to more efficient more efficient and sustainable logistics.

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What is multimodal transport and why optimize it?

Multimodal transport is a logistics model that combines different modes of transportation - road, rail, water and air - within the same within the same operation. The great advantage of this model lies in its integrated management, in which a single operator is responsible for all cargo handling, regardless of the modes used.regardless of the modes used. This allows for a more coordinated flow of goods, making the operation more efficient and simplified.

The growing complexity of supply chains requires ever greater flexibility and efficiency in logistics. Thus, companies that diversify their modes are able to improve route planningreduce costs and optimize delivery time. In addition, integration between different forms of transport can contribute to more sustainable logistics by enabling the use of less polluting modes at certain stages of the operation.

In Brazil, the diversification of modes has become a strategic issue for companies in all sectors. This is because optimizing multimodal transport can bring competitive advantagesallowing operations to be more predictable, scalable and aligned with new market demands. of the market.

However, harnessing the full potential of multimodal transport requires planning, adequate infrastructure and technology to enable efficient integration between modes.

In the next section, we'll get to know the main challenges faced by companies adopting this model and how these barriers impact the efficiency of the operation.

The main challenges of multimodal transport 

Multimodal transportation offers operational and economic benefits, but its implementation still faces structural, regulatory and technological barriers. Below, we highlight the main challenges that impact the adoption of this model and its efficiency in Brazil:

• Limited infrastructure and lack of connectivityAlthough Brazil has an extensive network of roads, railroads, ports and waterways, connectivity between these modes is still poor. According to the CNT Transportation Yearbook, only 12% of cargo is transported by rail, despite the fact that this mode is more economical and sustainable. Poor integration between logistics systems hinders the continuous flow of goods and increases operating costs;

• Lack of standardization and visibility of the operationThe problem is that each modal operates with its own systems, making it difficult to exchange information and track cargo in real time. Without centralized and integrated management, companies face delays, communication failures and a lack of predictability, impacting the entire logistics chain;

• Operational costs and complexity: multimodal transportation can generate savings in the long term, but requires initial investments in infrastructure, technology and staff training. In addition, coordination between different modes requires well-structured processes to avoid inefficiencies and extra costs;

• Bureaucracy and regulatory challengesEach modal is subject to different tax rules and customs requirements, making transportation more bureaucratic and less agile. The lack of document standardization and delays in regulatory processes increase costs and affect the predictability of operations;

• Sustainability and environmental challengesCompanies need to reduce their carbon footprint, but the migration to more sustainable modes still faces obstacles, such as high adaptation costs and insufficient rail and waterway infrastructure.

Faced with these challenges, technology is becoming essential to integrate and optimize multimodal operations - and SAP S/4HANA is the solution that enables this transformation.

In the next section, we'll explore how the system can bring operational efficiency and cost savings to this model.

Advantages of using SAP S/4HANA in multimodal transportation 

To overcome the challenges of multimodal transportation and make logistics more efficient, agile and sustainable, companies need advanced technology that integrate operations, optimize processes and offer complete visibility of the supply chain.

By enables fast decisions based on real-time dataSAP S/4HANA is the best solution, translating into greater operational efficiency, reduced costs and minimized environmental impact.

Below we highlight the four main advantages of SAP S/4HANA for multimodal transportation:

• Reducing costs

• Route and modal optimizationThe system analyzes data in real time to suggest the best combination of modes, reducing freight and fuel costs;
• Efficient stock and storage managementThe best way to avoid unnecessary costs with prolonged storage or inefficient handling;
• Financial predictabilitygreater control over taxes, tariffs and operating expenses, reducing hidden costs in the operation;
• Less waste of resourcesProcess automation avoids rework, manual errors and miscommunication between suppliers and carriers.

• Minimizing environmental impact 

• Choosing more sustainable modesThe system's predictive analysis identifies routes and transport combinations that reduce carbon emissions, prioritizing modes such as rail and waterway;
• Less waste and greater energy efficiencyReal-time control avoids unnecessary movements, improving fuel efficiency and reducing emissions;
• Environmental impact reportsSAP S/4HANA generates detailed reports on emissions and resource consumption, helping companies to monitor and reduce their carbon footprint.

• Real-time visibility and tracking 

• Integrated monitoringIntegrated monitoring: allows cargo to be tracked in real time, ensuring greater predictability and safety in multimodal operations;
• Automated alertsAutomated alerts: notifications in the event of delays, route deviations or operational problems, enabling rapid responses;
• Interactive control panels: dashboards personalized data provides strategic information for more agile decision-making.

• Greater efficiency and operational automation  

• Automated processesAutomated processes: reduce manual activities, speeding up operations and minimizing human errors;
• Integration with other SAP solutionsIntegration with other SAP solutions: connects logistics to financial, tax and sales management systems, ensuring a unified operation;
• Decision-making based on data intelligencePredictive reports help anticipate demand and plan the best distribution of modes.

With this combination of advantages, SAP S/4HANA not only solves logistical challenges, but redefines the way companies manage multimodal transportation. More than a traditional ERPit brings integration, predictability and sustainability to a sector that demands ever greater efficiency.

Now, let's understand which specific functionalities make all this possible in practice. Follow along in the next section!

SAP S/4HANA's main functionalities for multimodal transport

As we have seen, SAP S/4HANA is more than a conventional ERP: it is an intelligent platform that integrates, automates and optimizes all multimodal transport operations. With features aimed at transportation management, cost control, tracking and sustainability, the system provides more predictability, operational efficiency and risk reduction.

Check out the essential functionalities and modules of SAP S/4HANA for companies wishing to modernize their logistics management:

• Transport planning and execution

The SAP TM module (Transportation Management(Transportation Management) module enables companies to plan, execute and monitor their logistics their logistics operations in an integrated way, offering:

• Route planning and selection of the best mode based on costs, deadlines and environmental impact; 
• Automated execution of transport orders, ensuring operational efficiency; 
• Centralized management of contracts and freight costs, reducing errors and inconsistencies.

• Integration with warehousing and distribution

The SAP WM module (Warehouse Managementmodule is responsible for optimizing processes within distribution centersensuring that multimodal transport works synchronously when it is carried out:

• Coordination between storage and transportation, reducing cargo handling time; 
• Stock optimization, avoiding overstocking and improving product allocation. 

• Automated cost and billing control

The complexity of costs in multimodal transportation requires a robust solution to manage tariffs and expenses. In view of this, the SAP Freight Costing & Settlement (module automates this process, ensuring more transparency in the following ways:

• Automatic calculation of transportation costs, taking into account distance, modes and established contracts; 
• Integration with the financial area, facilitating audits and invoicing processes. 

• Full cargo tracking and visibility

The SAP Track & Trace (module) allows companies to monitor each stage of the operation in real timeguaranteeing greater predictability and security:

• Continuous monitoring of cargo, reducing the risk of loss or delays; 
• Automatic alerts of deviations or delays, allowing quick and efficient responses; 
• Interactive panels and dashboards facilitating decision-making.

• Environmental reporting and ESG (Environmental, Social and GovernanceEnvironment, Social and Governance)

Concern for sustainability is a growing reality in the logistics sector. The SAP Sustainability Analytics (module) module helps companies measure and reduce their environmental impact by by providing:

• Calculation of CO₂ emissions and energy consumption, helping to comply with environmental regulations; 
• ESG reports to support companies' sustainable strategy; 
• Optimizing the use of less polluting modes, contributing to more environmentally friendly transport. 

Logistics management requires efficiency, control and predictability, and that's exactly what SAP S/4HANA offers. With its advanced functionalitiesit not only connects and automates processes, but also brings intelligence to decision-makingmaking multimodal transportation more strategic, sustainable and financially viable.

But for this transformation to happen efficiently, the implementation of the solution needs to be well planned and structured. That's what we'll see next.

How to implement SAP S/4HANA for multimodal transportation 

Adopting SAP S/4HANA is not just a technological change, but a strategic transformation. To ensure an efficient implementation that brings the best results, companies need to follow a well-structured companies need to follow a well-structured processthat involves planning, integrating and adapting teams.

Here we have created an objective step-by-step guide on how to implement the platform effectively in multimodal transport:

• Step #1 - Mapping the current logistics operation 

• Before starting the implementation, it is essential to evaluate the existing logistics infrastructure and identify the points that need to be optimized; 
• It's important to answer questions such as: Which modes are currently used? Where are the operational bottlenecks and the main logistics costs? Is there complete visibility of operations or do manual processes still predominate?;
• This diagnosis will help you set realistic goals for implementation, ensuring that SAP S/4HANA is configured according to the company's specific needs.

• Step #2 - Defining the integration strategy 

• SAP S/4HANA must be integrated with the systems and processes already used in the company, guaranteeing fluidity and centralization of operations; 
• It is important to consider integration with transport management systems, optimizing the choice of modes and routes; 
• Connection with the financial and tax areas, automating invoicing and regulatory compliance; 
• Compatibility with tracking and monitoring solutions, ensuring total visibility of operations; 
• The better the synergy between SAP S/4HANA and the other platformsthe more efficient the transition to an automated logistics management model will be.

• Step #3 - Configuring and customizing the system 

• Each company has different operational needs, which is why the implementation of SAP S/4HANA needs to be adjusted to the reality of the business;
• It is important to define workflows workflows, reducing manual processes;
• Setting up rules for calculating freight, tariffs and taxes, ensuring financial predictability; 
• Customization of dashboards and strategic reports, facilitating real-time monitoring;
• This phase ensures that SAP S/4HANA is aligned with the company's objectives and brings operational efficiency from the outset.

• Step #4 - Training and adapting teams 

• Technology only delivers its full potential when people know how to use it. That's why training teams is an essential step towards successful implementation;
• It is important to provide training for the logistics and operations teams, ensuring that everyone knows how to use the new tools; 
• Initial monitoring of the adaptation, resolving doubts and configuration adjustments; 
• Creation of an internal team of SAP S/4HANA experts to ensure ongoing support; 
• This process reduces the learning curve and speeds up the adoption of the new technology, avoiding negative impacts on the operation.

• Step #5 - Continuous monitoring and optimization 

• After implementation, it is essential to monitor the performance performance of SAP S/4HANA in the logistics operation and seek constant improvements;
• It is important to analyze performance indicators (KPIs), such as cost reduction, efficiency in the use of modes and delivery time; 
• Adjustments to the system configuration, according to the company's new needs; 
• Expansion of the use of SAP S/4HANA to new areas of the logistics chain. 

Remember: implementing SAP S/4HANA in multimodal transport doesn't just mean automating processes, it means creating a more intelligent, connected and future-proof logistics management for the future. Companies that adopt this solution gain in predictability, cost reduction and sustainability, strengthening their competitiveness and relevance in the market.

Cast group Solutions: optimizing multimodal transport with technology

The digitalization of logistics is not just a question of technologyit's a strategic change. In the Transport and Logistics sector, where every decision affects costs, deadlines and operational efficiency, the integration of modes needs to be done with intelligence and specialized support.

We know that implementing SAP S/4HANA goes beyond adopting a system.. It's about transforming processes, reducing inefficiencies and ensuring that every movement in the logistics chain is optimized and sustainable.

That's why we at Cast group Solutionsare at the companies' side to ensure that this transformation takes place with maximum efficiency and security. We work with companies to ensure that SAP S/4HANA is implemented efficiently, without negative impacts on operations and with real results right from the start.

• We map processes and identify opportunities before implementation;
• We create a solid transition planminimizing risks and ensuring operational continuity;
• We integrate SAP S/4HANA with existing logistics systemsmaking the operation more fluid and connected;
• We train teams so that the use of technology is strategic and brings tangible results;
• We offer ongoing supportWe monitor the evolution of the solution to ensure that the company continues to extract maximum value from digitalization.

Our commitment is clear: to ensure that the digitalization of multimodal transport generates operational efficiency, predictability and sustainable growth for your company.

We know that each company has specific challenges and needs. That's why we offer a consultative serviceto understand your scenario and outline the best strategy for implementing SAP S/4HANA. Talk to one of our experts and find out how we can accelerate the digital transformation of your logistics operation!

Conclusion

The transportation and logistics sector is undergoing a transformation. With challenges such as high operating costs, lack of integration between modes and pressure for sustainability, companies need to go beyond traditional models to ensure efficiency, predictability and competitiveness.

As we have seen in this article multimodal transport is a strategic way to optimize routes, reduce costs and make operations more sustainable. However, for this model to be efficient, technology needs to be at the center. technology needs to be at the center of the strategy.

Given this need, the SAP S/4HANA system has the power to transform multimodal logistics by offering automation and total integration of multimodal operations; cost reduction with efficient transport planning; real-time tracking and monitoring for greater predictability; and sustainability, with data analysis to minimize environmental impacts.

However, it's important to remember that technology alone can't solve logistics challenges. That's why correct implementation and a well-structured strategy are fundamental to to ensure that SAP S/4HANA brings the expected results.

Now, how about exploring other strategies to optimize your logistics management? Visit our blog and check out more content on innovation, technology and digital transformation in the Transportation and Logistics sector.