Global Heavy Equipment Manufacturer Leverages SAP BTP to Adapt to COVID-19 Market Disruptions
A leading heavy equipment manufacturer in the construction industry produces and imports machinery for dealers across North America. Some models are manufactured in the U.S., while others are imported from production facilities in Asia. These machines arrive via ocean freight, enter the U.S. through coastal ports, and are then transported to a local yard until picked up by dealers.
"This initiative is a great example of how business strategy and technology can align to drive real business outcomes. SAP BTP empowers organizations to be agile, but success also depends on having a partner who truly understands the industry’s challenges. At Redfig, we’re not just BTP experts—we bring deep business and industry experience to ensure technology solutions deliver exceptional ROI."
Olavo Figueiredo - CEO at Redfig
BUSINESS CHALLENGE:
During the COVID-19 pandemic, demand for heavy equipment surged while global supply chain disruptions led to delays and inventory shortages. The traditional logistics process—where imported machines were first moved to a storage yard before reaching dealers—resulted in increased costs and extended order fulfillment times. Dealers, eager to receive equipment faster, sought a more efficient delivery model.
SOLUTION:
To streamline operations, the company implemented a Direct Ship program, allowing dealers to pick up machinery directly from the port, bypassing storage yards. A mobile-friendly application was built on the SAP Business Technology Platform (BTP) to facilitate real-time coordination between the manufacturer, dealers, and carriers. This application enabled dealers to:
- Look up order details for machines eligible for Direct Ship.
- Submit carrier information for direct port pickup.
- Reduce dependency on intermediate storage facilities.
The system seamlessly integrated with SAP and other business data sources to ensure accurate, real-time information sharing.
RESULTS:
- Reduced Order Fulfillment Time – Orders were processed 4 days faster on average.
- Lower Transportation Costs – The company saved $771,000 annually by eliminating unnecessary storage and handling costs.
- Improved Dealer Satisfaction – Faster deliveries led to reduced delays and enhanced dealer relationships.
By leveraging SAP BTP, the manufacturer achieved greater supply chain efficiency, minimized logistics costs, and improved responsiveness in a highly volatile market.