Vulnerability to climate change in the form of storms that shut down a key partner in its supply chain prompted polymer producer Meraxis to turn to software to better manage risk and unpredictability. 

“Houston, we have a problem.” That was the dire message coming out of the plastics processing industry in February 2021 when a winter storm brought polymer production around the Texas metropolis to a standstill, threatening downstream supplies in other parts of the world. Houston is home to some 90 major producers of polyethylenes, polypropylenes, polyvinyl chlorides, and other primary plastics for the global market. Further similar storms demonstrate the effects of climate change, along with many other challenges facing the polymer supply chain.  

The Swiss company Meraxis is one of the biggest players in the global market for polymer materials, with annual revenues of more than €2 billion ($2.19 billion) in the procurement and supply of traditional plastics, engineering plastics, masterbatches (color granules), and recyclates. Meraxis also procures purchased parts (including metal, foils, and electronics) as well as machinery, equipment, and tools for various plastics processing techniques. The Swiss company supplies polymers and polymer-related products to companies in all industries through a global network of over 25 regional offices on every continent. 

Meraxis wanted to consolidate and coordinate supply chain data to protect its supply chain against unforeseen circumstances. They sought help from Siemens Digital Logistics. 

Meraxis had been working hard for years to digitally integrate its suppliers, logistics service providers, and customers. In 2020, the company launched a customer portal for various services, aimed at simplifying procurement processes, and supporting plastics processors in overcoming the current challenges in global supply chains.  

In seeking to digitize its supply chain, Meraxis deployed AX4 from Siemens Digital Logistics. The cloud-based control tower solution brings together all data and documents in a centralized hub, making supply chain data visible — what’s commonly referred to as a control tower. Meraxis is now integrating its supply chain partners with EDI, web app, and email options. The result is an end-to-end visibility that sets a new standard in the plastics industry. “AX4 gives us the ability to view and monitor our flow of goods at any time,” reports Daniel Knöpfel, Head of Supply Chain Management at Meraxis, adding that AX4 also integrates seamlessly into the company’s SAP environment. 

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For tracking and tracing road transports, the AX4 control tower solution includes a track-and-trace system that shows the status of every order based on milestones defined by the project team — ranging from the initial order placement to pickup to proof of delivery at the final destination. “Our employees always know the up-to-the-minute status of any shipment,” Knöpfel confirms. The data will eventually be mirrored to the Meraxis customer portal, so that customers can always see the status of their orders. “This gives those of us in the plastics industry supply chain the kind of visibility that has long been the norm for consumers in the B2C sector,” Knöpfel points out. 

AX4 also offers an alert feature for end-to-end supply chain monitoring. The system generates automatic notifications whenever there is any deviation from the planned shipping process, or one of the defined milestones is missed. “This allows us to provide the best possible safeguards for our supply chain, even when crisis strikes, and to move as quickly and effectively as possible to prevent bottlenecks if unforeseeable events impact the movement of goods in the plastics processing industry,” says Knöpfel. 

AX4 delivers many other benefits to Meraxis. All information is exchanged electronically, and documents are automatically shared with all relevant parties, slashing costs and super-charging workflows for suppliers, carriers, Meraxis itself, and Meraxis customers. 

Freight cost auditing has also been significantly improved. “Billing errors are now a thing of the past. Having a digital supply chain has also made the job of checking and manually reconciling order and delivery data much easier. Above all, the process of reconciling the orders entered in the system with incoming invoices is much more efficient today,” says Knöpfel. 

Knöpfel says the solution that Siemens Digital Logistics developed for Meraxis gives the company a critical edge in maintaining stable operations despite uncertainties. 

Meraxis has further ambitions to generate most of its revenue through digital sales channels by 2025 and to integrate both customers and suppliers in this transformation. 

Resource Links:

Meraxis, https://www.meraxis-group.com/en/

Siemens Digital Logistics, https://siemens-digital-logistics.com/home-en