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Simple ways to achieve material price transparency in procurement - how HERMA counters price volatility

Direct added value through the digitalisation of procurement

published on
30.11.2023

Schwäbische Werkzeugmaschinen GmbH

🏗 Industry: Mechanical engineering

🗺 Company headquarters: Waldmössingen (Germany)

🧍 Employees: 1200

🧰 Procurement volume: low triple-digit millions / year


Schwäbische Werkzeugmaschinen GmbH, SW for short, is an internationally active manufacturer of production systems in metalworking. The company specialises in machining centres, automation and system solutions in the automotive industry, but has also proven itself in the agricultural and construction machinery sector, as well as in hydraulics and pneumatics.

"In procurement, we were able to achieve initial success with isolated solutions, but Tacto was the jackpot. Previously, there was nothing that could be introduced with reasonable effort.

Matthias Schlotter

Head of Procurement

Download success story

3

Implementation weeks

6

digit savings

> 500

Hours saved

The challenge:

Before SW started working with Tacto, IT projects often involved high implementation efforts, high costs and were prone to errors.

However, due to SW's strong growth in recent years, the revision and optimisation of processes became indispensable. At the same time, staff resources are limited in both IT and procurement. In order to ensure future security and further growth, the digitalisation of procurement is essential.

For example, it seemed almost impossible to analyse all relevant data without a procurement system. Transparency about the development of all suppliers, categories and articles was not given. Without such an overview, price increases and outliers often went unnoticed and potential savings remained hidden.

In order to automate highly manual, Excel-based processes such as price evaluations or reporting, Tacto has developed an intuitive procurement cockpit with SW's buyers - with all the required key figures and visualisations.

On the way to digitalisation, SW has only been able to achieve success in the search for a procurement operating system in isolated areas of procurement. No software could be found whose price or effort was in proportion to its return.

Merely isolated solutions for procurement that did not function holistically and led to system breaks in work processes

Time-consuming, manual & Excel-based processes and data analysis that tied up staff capacity and created no added value.

Increasing complexity & intransparency in procurement, which hid negative developments

Tacto as the solution

With Tacto, SW is significantly advancing the digitalisation of procurement:

The ease of use and added value of the software quickly made itself felt by all staff. Shortly after the introduction of Tacto, all buyers proactively requested access to the functions, as they made the buyers' lives much easier. With Tacto, SW's procurement is moving away from Excel-based processes to a fully digitalised procurement with automated processes.

In discussions with management and suppliers, impressive analyses can be used in real time. In this way, potential savings can be identified and measures can be initiated. Even supplier measures were maintained and tracked via the new software. Only a few months after the implementation of Tactos software, SW was already able to record strong savings.

For example, SW was able to analyse price developments of individual suppliers and ward off price increases in the five-digit range. The intelligent notification of strong price deviations (outliers), which preventively warns the company of overpayment, is also an extraordinarily great help.

What makes Tacto a preferred partner of SW is that Tacto has been able to perfectly address SW's most pressing procurement needs. No other software on the market can offer so much assistance to procurement and at the same time be implemented with so little effort.

Fully digitized procurement tailored to SW's requirements

Software that can be used intuitively by all employees and automates manual processes

Savings through Tacto alerts and transparent data analysis for supplier negotiations

What SW appreciates most about Tacto

The cooperation is very good, especially very fast and professional. In addition, it was simply fun. The fact that results could be realised so quickly is something you don't really know from software projects. When our employees saw the first spend analytics, one of them said "wow, that makes us brutally digital".

If you would also like to learn how Tacto can support you with your digital peocurement needs, please feel free to contact us. (see below)

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