Optimizing Supply Chain Efficiency through 4PL Services

Farmer's Sunset Inspection of Soybean Field.

About Syngenta

Industry

SERVICES PROVIDED

ABOUT

The Challenge

Syngenta needed to establish new strategic warehouses in Colombia, Guatemala, and Panama to improve proximity and ensure faster deliveries to their end customers due to business growth in the country. Syngenta sought a comprehensive 4PL solution to enhance logistics, reduce CO2 emissions, and increase operational efficiency.

The Solution

The partnership between the Syngenta and PSA BDP has spanned over a decade, with 4PL solutions being provided since 2018. As a 4PL provider, PSA BDP played a pivotal role in enhancing Syngenta's business processes, overseeing the design and management of the entire supply chain, including customs, storage, and transportation processes across multiple countries. Recognizing the importance of a well-organized supply chain, Syngenta entrusted PSA BDP to design and manage their new logistics model named GTM “Go To Market”. This new project consisted of opening new satellite warehouses in Colombia and others country allowing Syngenta to deliver to end clients faster than competitors. PSA BDP identified the optimal locations for these new warehouses.

Currently, PSA BDP manages 11 warehouses for Syngenta in Colombia, Panama, and Guatemala, totaling 14,000 pallet positions. This involves coordinating 14 suppliers across these locations and handling the full scope of logistics activities, including local trucking, customs brokerage, health, safety, and environment (HSE) compliance, as well as financial management. The integration of the Smart Vū PO management system with Syngenta's information system ensures seamless communication and visibility throughout the supply chain. PSA BDP also implemented tailor-made dashboards for Syngenta to monitor their KPIs.

Following the successful GTM launch, PSA BDP initiated a comprehensive project to transition Syngenta's fleet to cleaner technologies. In 2024, two new electric vehicles were introduced, each with an operating range of 150 kilometers and a load capacity of 4.5 tons. This transition is expected to reduce CO2 emissions by 15% compared to 2023, equating to a reduction of 150 tons of CO2 throughout 2024.

The Result

Post-implementation, PSA BDP demonstrated tangible improvements in key performance indicators. The On-Time Delivery (OTD) metric saw a remarkable increase, reaching an impressive 97% in 2023. Additionally, the HSE management of chemical products achieved a perfect record, with zero incidents to date. There has also been a perfect record in terms of security, both in warehouses and local trucking, and customs compliance.

Cost savings have been significant, with a 10% reduction compared to the initial budget since the launch of the project.

The introduction of electric vehicles has been the latest notable success, with 23 tons of CO2 saved.

The strategic partnership between Syngenta and PSA BDP has not only addressed the company’s immediate need to expand their warehouse presence, but has also transformed their overall supply chain into a highly efficient, environmentally conscious, and technologically advanced system, aligning with the evolving needs of Syngenta and the global market.