Success Story: From LTM to CSI – How an innovative system saves costs and protects the environment

Background

For over 20 years, we have been developing and maintaining the Load Carrier Management System (LTM) for a renowned automaker based in southern Germany. Originally launched in the 1990s on a COBOL-based platform, the system has been continuously expanded, modernized, and deployed worldwide.

LTM was introduced at that time to maintain as comprehensive an overview of the load carriers as possible. The purchase of these specialized transport racks was—and remains—extremely costly; therefore, seamless tracking was essential. With LTM, it was possible to track the location of the load carriers—whether at the supplier’s facility, on the factory premises, or in transit.

Another key advantage: The annual inventory allowed the company to monitor stock levels and minimize losses. This not only led to significant cost savings but also contributed to environmental protection. Since there was no need to purchase new load carriers unnecessarily, resources were conserved and emissions were reduced.

Over time, however, the system became increasingly complex, and a fundamental modernization was necessary. With the development of Container System International (CSI), we are consistently continuing this evolution.

CSI Project Description

By mid-2027, LTM Classic will be completely replaced by CSI (Container System International). The new CSI is integrated into the SC IT development plan and is based on a modern IT architecture.

Overarching Goals of CSI

• Further development of efficient processes and enforcement of standards
• Reducing complexity within the business logic
• Simplifying and customizing the use of CSI through an improved user interface
• Modular design based on a building-block principle to enable more flexible integration of new customers
• Improving data quality and ensuring data transparency and consistency
• Modern programming language to replace COBOL, ensuring long-term maintainability and further development as the availability of COBOL experts continues to decline. By migrating away from COBOL to a widely used programming language, we ensure the availability of expertise, simplify the onboarding of new developers, and guarantee the long-term maintainability of the system.

The Challenge

Technological Transformation While Systems Remain Operational

Modernizing a system that had evolved over two decades posed a particular challenge:

• Replacing the existing architecture: The migration from COBOL to Java and the transition to a microservices architecture required extensive modifications.
• Data migration and performance optimization: Over 2 million transactions and more than 100,000 supplier accounts are processed annually—the new platform had to handle this data efficiently and with high performance.
• Ensuring functionality: CSI had to take over all essential functions from LTM, implement new and consolidated functions, while removing or outsourcing modules that were no longer needed.
• Time constraints: Since the system shutdown had to take place at a clearly defined time, the migration from COBOL to Java was deliberately carried out manually. This allowed us to ensure a high-quality, on-time implementation independent of the training time required for automated processes.

Sample Requirements for CSI

• Separation of Group Companies (Project Focus)
• Process integration of external third parties
• New business models and partnerships
• Requirements from the KPMG audit, in particular:
  • Authorization framework
  • Process controls
  • Master data logic

The Solution Approach

Strategy for a Phased Migration

Since LTM was deeply integrated into business processes, we opted for a smooth migration rather than an abrupt transition:

Technological Modernization

• Replacement of the Java client with a web-based application featuring a modern user interface.
• Implementation of a microservices architecture to make modules more flexible.
• Migration of the database from IBM DB2 to Microsoft Azure to reduce costs.
• Use of SQL databases with optimized queries for faster response times.

Functional Optimization

• Removal of modules that are no longer relevant to simplify the system.
• Continuation of the proven supplier integration (ECON view), which will remain unchanged for the time being.
• Optimization of nightly data processing to ensure efficient transaction processing.

User-Friendliness and Design

• Development of an intuitive and modern user interface tailored to the needs of various user groups.
• Expansion of individual user settings for a personalized experience.

Technical Implementation

• Translation from COBOL to Java by an experienced team of experts.
• Integration of cloud technologies (MO360 platform) to ensure a future-proof architecture.
• Cross-table data processing to link different system areas and create greater transparency.

Results

Successful implementation and long-term benefits

✅ Future-proof technology through the transition from mainframes to modern cloud architectures.

✅ Significant cost reduction through the elimination of expensive mainframe infrastructure and reduced IT administration efforts.

✅ High scalability and flexibility through dynamic adjustment of IT resources.

✅ Improved performance and data availability through professional maintenance and operation of cloud resources.

✅ User-friendly interface that enables easier operation and better user guidance.

✅ Optimized inventory management of load carriers, thereby avoiding unnecessary new purchases.

Measurable Results

• Reduction in IT operating costs by switching from IBM to Microsoft Azure.
• Optimized performance, which has improved the processing of over 2 million transactions per year.
• Greater transparency in the supply chain, allowing for more efficient management of load carriers.
• Lower CO₂ emissions, as improved tracking of load carriers eliminates the need for unnecessary new purchases.

Conclusion and Outlook

With the modernization from LTM to CSI, we have reached an important milestone in the digital transformation of load carrier management. Through the consistent further development of our system—which we have been maintaining for over 20 years—we have created a solution that is technologically future-proof, economically efficient, and user-friendly.

Outlook on the Next Steps

• Adapting CSI to changing logistics processes
• Further modularization to make the system even more flexible.
• Implementation of new technologies, such as AI-powered software development.