Klabin reduces freight costs with Oracle Transportation Management

Klabin, a leading producer and exporter of pulp and paper, has a 100-year history in Brazil and today employs 25,000 workers. From forests and production inputs to cellulose conversion and packaging manufacturing, it offers not only customized solutions, but excellence in quality at all stages of the production process. However, given the complexity of its operations, Klabin faced significant challenges in its logistics. With 200,000 shipments a year involving trucks, containers, rail, and air operations, and an annual production of more than 4 million tons, the efficient management of the entire chain required a deep understanding of the business. The company’s diverse products and customers required a flexible and integrated approach.

Klabin operated a transport management system in only one manufacturing unit, but it did not meet company expectations. Klabin became dependent on manual tools and spreadsheets to conduct its logistics operations. This resulted in slow processes and difficulties in identifying and solving problems, as well as high costs. The high volume of cargo shipped daily, much of which was produced on the same day, increased the urgency in moving to an effective and automated logistics management system.

Klabin ultimately selected Oracle Transportation Management, part of the Oracle Supply Chain Management (SCM) suite of applications. Oracle offered specific solutions and a strategic vision for expansion. Oracle’s ability to anticipate and adapt to market changes, along with offering a constant supply of new features and improvements, gave Klabin confidence that OTM would evolve along with the company’s demands and growth strategies.

After the implementation, Klabin could monitor in real time all production and visualize possible impacts on logistics, resulting in faster responses to changes. The company was able to significantly reduce direct and logistical costs, thanks to the planning algorithm that provided more accurate and faster decision-making. After automating several processes, Klabin saw a jump in efficiency, with employees freed from manual tasks to focus on actual logistics management. Logistical inefficiencies drastically decreased with automation, which eliminated human errors such as dispatching vehicles on an incorrect date or selecting the wrong vehicle type. In addition, faster responses to inquiries improved customer satisfaction, reduced overtime costs, and improved employees’ quality of life. Finally, the implementation helped support Klabin’s  sustainability goals by putting fewer trucks on the roads.