157,000 € Cost savings through transparency for B and C parts, conclusion of quantity contracts & batch size changes
published on
28.8.2024
🏗 Industry: Mechanical engineering
🗺 Company headquarters: Verden (Aller)
🧍 Employees: ⁓ 900 worldwide
VEMAG Maschinenbau GmbH, Verden/Aller, is one of the world's leading machine manufacturers in the development, production and sale of high-quality filling, portioning, forming and loading systems. The company manufactures its machines and modules exclusively at its site in Verden. The company produces efficient solutions for the trade, medium-sized businesses and industry. The company also offers special designs and a comprehensive range of services. With over 900 employees, the company is active worldwide and exports around 85% of its products.
"Tacto's price outlier tool offers very good transparency regarding the quantity and price trends for B and C parts. By recognizing these conspicuous components and the resulting requests for graduated prices as well as the change in batch sizes and the partial conclusion of new quantity contracts, we expect to save more than 157,000 euros in 2024." - Florian Greulich, Purchasing Manager VEMAG Mechanical Engineering
One of the biggest requirements at VEMAG was the further optimization of various key figures in purchasing as well as the further automation of different processes.
The initial focus was on analyzing B and C parts, which are often considered hidden cost drivers. The team led by Florian Greulich, Purchasing Manager at VEMAG, analyzed the price structures together with Tacto and ensured greater transparency.
It was also clarified for which B and C parts it makes sense to conclude new quantity contracts or adjust batch sizes. In addition, the mechanical engineering company has centralized communication with its suppliers and the demanding onboarding processes have also been further optimized.
With the "Procurement 2027" strategy, Florian Greulich placed a central focus on the digitalization of procurement and central purchasing processes. The aim is to relieve Purchasing of operational tasks and concentrate more on strategic components. Tacto plays a key role here as the central SRM system.
As part of digitalization and the "Purchasing 2027" strategy, VEMAG has already made significant progress with the introduction of Tacto as a central SRM system. For example, over 150 existing suppliers have already been activated via the new onboarding process in Tacto, which means that all the necessary documents and information can be accessed digitally with just a few clicks. New suppliers are now added to the supplier base exclusively via this efficient process.
VEMAG has also uncovered major savings potential with the help of the price outlier tool. Savings of over 157,000 euros are expected to be realized over the course of 2024. These savings are mainly concentrated on B and C parts, which often "fly under the radar" in day-to-day business and are purchased at better conditions by concluding quantity contracts and adjusting batch sizes
Florian Greulich is pursuing the clear goal of further expanding and strengthening the partnership with Tacto. In the next step, VEMAG plans to implement the Supply Chain Act (LkSG) and connected supplier assessments (deadline and delivery reliability, quality, etc.) automatically. Here too, VEMAG plans to work closely with Tacto.
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Many thanks to Florian Greulich, Steen Bösche and the entire VEMAG team for our partnership and trustworthy cooperation.
Thanks to partners and customers like you, it is possible to further develop our product in close exchange and close to daily events, as well as to talk in joint webinars about the topics that concern the procurement of industrial medium-sized companies today.
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