Hapag-Lloyd has equipped two million containers with transmitters that report their position in real time. SAP uses this data in its ERP systems. Delays become apparent quickly and production plans can be adjusted. The beneficiaries are freight forwarders, buyers and production planners worldwide.

Logisticians were and are currently facing major challenges: First, the corona pandemic and its consequences disrupted global supply chains to an unprecedented extent, and today global conflicts are hindering shipping traffic – including in the Strait of Hormuz.

In order to be able to produce and deliver in a planned manner despite the associated delays and unpredictability, many companies had recently increased their inventories again – which led to high costs.

Container tracking and real-time data now bring unprecedented transparency to supply chains, allowing companies to reduce their inventory levels again.

Hapag-Lloyd, the fifth largest container shipping company in the world, provides live position data for its containers. SAP uses this data in its ERP systems or in the cloud solution SAP Business Network Global Track and Trace and connects it with the shipment and material information stored there. Hapag-Lloyd is not only an SAP customer, but also a supplier and partner.

We talked to Karsten Schmidt, Director, Product Owner Live Position/Track&Trace at Hapag-Lloyd and Sven York Pohl, Chief Expert Digital Adoption at SAP SE, about how the collaboration began, how the users of the systems benefit from it and what possibilities it still holds for the future.

News Center: Tracking shipments has changed drastically in recent years. What events triggered the innovations?

Sven York Pohl: In times of Corona, we experienced massive delays in deliveries. And we learned that logistics processes are far too non-transparent.

Karsten Schmidt: So far, only milestones of sea transport such as the arrival of the container at the port or loading onto the ship have been tracked. We knew when a delivery was loaded onto the ship and when the container left the port in Hamburg. But if he didn't arrive in Munich afterwards, no one could say what had happened.

And how does tracking work today?

Schmidt: After Corona, we decided to equip all non-refrigerated containers with IOT trackers, i.e. with transmitters that continuously report their position. By mid-2024 we had 90 percent of our containers equipped accordingly. Since then, we have been tracking over two million containers worldwide and providing live event data every 15 minutes for land transport and every six hours for sea transport. This means our customers can track the exact journey of “their” containers on a website.

How did the cooperation between Hapag-Lloyd and SAP come about?

Pohl: At that time I was supporting an SAP transformation project at Hapag-Lloyd, so I met Karsten Schmidt more often anyway. It was clear to both of us from the start that the position data was a treasure of gold that needed to be exploited not only for the logistics company – but also for their customers. If you know exactly when a preliminary product will arrive – or by how many days it will be late – you can plan its further processing with precision. Of course, this works best if I not only make the position data visible on a standalone website, but if it becomes an integral part of the applications with which I control my production and other business processes. So Karsten Schmidt and I talked about how the position data could get into SAP ERP systems.

Which SAP applications use the data?

Pohl: The cloud solution SAP Business Network Global Track and Trace offers companies consistent and transparent real-time shipment tracking across the entire supply chain. And it enables data to be embedded natively in backend systems such as SAP S/4HANA. For example, alerts can be integrated here that continuously show where a container is currently located. The data can also be used via the SAP Business Network for Logistics. The cloud-based supply chain collaboration platform seamlessly connects shippers with logistics service providers and freight forwarders. Real-time data like that from Hapag-Lloyd not only ensures transparency, but also ensures maximum safety and sustainability in the supply chain thanks to the seamless traceability of materials.

Which target groups primarily benefit from Hapag-Lloyd tracking data?

Schmidt: First of all, logistics managers who need to know as precisely as possible where their containers are – and when they will arrive. The data also allows conclusions to be drawn about the sustainability of the transport chain. In addition, warehouse planners who want to keep their inventory as small as possible – but not too small. And of course transport companies who want to plan their routes as reliably as possible. In addition, the tracking data can also influence payment processes.

The current conflict in the Middle East has probably made it clear how helpful and necessary tracking is for planning routes?

Schmidt: Indeed. Most recently, countless containers were transported from the Persian Gulf across Saudi Arabia to the port of Jeddah on the Red Sea to be shipped from there. Our counterparty tracking solution continuously shows me the overland route chosen and where a container is currently located.

And if this container gets stuck somewhere if the journey doesn't continue? What help does the system provide in this case?

Schmidt: We're working on that right now. Normally, most customers call our customer service if they want to know where their container is. With 15,000 containers stuck in the Persian Gulf, we were no longer able to cope with the volume over the phone. That's why we gave all customers – including those who had not booked this service – access to live positioning. In this extreme situation it became clear how much work this step means for our processes.

Pohl: In the long term, SAP users will have the opportunity to ask the software they use about options for action and about alternative transport routes or means.

Schmidt: If, for example, a ship is delayed and misses the connection for the transfer to the rail, the system will tell it whether further transport by truck is possible and how much longer the container's journey will then take – in other words, predictive service.

Pohl: We will also use the generative AI solution Joule, which is integrated into our cloud portfolio, for this service. The aim is for the AI ​​to suggest concrete options for action.

Schmidt: Of course, we know that when transporting goods over long distances – especially by sea – delays can never be ruled out. But what we can eliminate is the feeling of powerlessness, the feeling of being helpless at the mercy of events over which I have no influence.