Creating key figure transparency in purchasing and providing an integrated and smart solution to the Supply Chain Duty of Care Act
published on
23.7.2024
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🏗 Industry: Mechanical engineering
🗺 Company headquarters: Bad Saulgau (Baden-Württemberg)
🧍 Employees: ~ 1200 worldwide
🧍 Employees: ~ 15
The family-owned company KNOLL Maschinenbau GmbH, which has been managed by the second generation since 1970, is a market leader in the production of conveyor and filter systems for metal processing. With its products, KNOLL offers added value for industries in which metal is machined, including mechanical and plant engineering, the automotive industry, aerospace, medical technology, energy technology and other industrial sectors. As a new business segment, KNOLL is developing automated assembly and transport systems for production, such as driverless transport systems. As part of its further development, the company is focusing on internationalization - with existing subsidiaries in Asia, America and Europe - as well as on process automation and digitalization in production and logistics processes.
" Tacto offers everything procurement needs to be agile - all in one place. From spend analytics to supplier management and compliance, including supply chain law. In my opinion, it's the best solution for medium-sized companies." - Mario Koch, Purchasing Manager
At the turn of the year 2018/2019, Purchasing at KNOLL was split into a strategic and an operational division. Due to the changing importance of purchasing and KNOLL's growth, it was necessary to reorganize purchasing. Unfortunately, SAP only offers limited evaluations and hardly any visualizations.
For example, each buyer manually calculated the required key figures in their own and decentrally organized Excel files. In addition, different calculation logics were used, which led to different key figures. While one purchaser carried out the calculation on the basis of order quantities, another used the invoice quantity as the basis, resulting in a time lag.
This lack of transparency and decentralized processes were the decisive reason for KNOLL to focus intensively on the digitalization of purchasing in 2021 - with a focus on key figure transparency.
The overarching goal was to implement a lean solution that would fit KNOLL's purchasing structures and requirements perfectly. The focus was particularly on the transparency of the purchasing key figures, such as the purchasing volume per supplier and the identification of top-selling items, as well as the uniformity of the key figures, which should be centralized and accessible to all, but also trends, developments and comparisons over a selectable period of time.
Compared to other solutions, Tacto impressed with its flexibility and agility. Other solutions were very rigid and not suitable for SMEs and KNOLL's requirements. KNOLL has been a cooperation partner of Tacto since the beginning of product development. Thanks to the mutual flexibility, Tacto and KNOLL benefit from the result, as do other Tacto customers.
" The introduction of Tacto has significantly improved our processes. If I need specific key figures for a supplier, I can get them within a few seconds with just a few clicks. I no longer have to compile figures, calculate unit prices or volumes or prepare Excel tables myself. Not only have we become faster, we also avoid errors. The platform also enables us to track developments over the years and provides a comprehensive overview of data such as supplier performance, quantities and more - all at a glance." - Mario Koch, Purchasing Manager
" Tacto makes it much easier to prepare for a meeting or negotiation. The necessary information and available potential can be found easily and in a structured way, but above all they are reliable and available at the touch of a button. In terms of processes, this saves a lot of time for me and my colleagues, allowing us to focus on value-adding activities." - Ralf Wäscher, strategic buyer
KNOLL started with the Tacto analytics module to initially improve transparency and centralization of data and processes. Tacto enables the purchasing team to achieve complete transparency regarding key figures and potential. The purchasing volume can be broken down by supplier, article or product group at the touch of a button.
This allows KNOLL to continuously recognize which items are among the top-selling items and which items should be the focus of the next negotiation. In addition, Tacto enables KNOLL to track price developments and quantity trends, as well as changes in real time, which also precisely identifies the need for possible price negotiations.
The introduction of Tacto has also established a uniform and centralized key figure basis for purchasing. All purchasers now refer to the same data, regardless of supplier, article or product group, and do not have to work decentrally in Excel spreadsheets, which lead to a high error rate.
" The visualization is a special highlight that is not available in this form in SAP. There you only have tables and masks, but no diagrams. This visual approach offers considerable added value. The ability to display data using graphics not only provides a clear overview, but also shows important trends, such as price developments, in a clear way." - Daniel Rundel, SAP Process Manager Purchasing & Key User Tacto
In addition to purchasing issues, KNOLL is also solving the Supply Chain Act together with Tacto. With 1,100 employees in Germany, KNOLL has been directly affected by the legislation since the beginning of 2024 and is therefore already required to report.
Simple design of the LkSG requirements
KNOLL's goal was to make the requirements of the Supply Chain Act as lean, uncomplicated and, in particular, simple as possible for suppliers and to integrate them seamlessly into existing systems and processes.
Time savings due to minimal involvement of purchasers
The Tacto supply chain law module enabled KNOLL to achieve considerable time savings. The purchasers were only minimally involved in the implementation process, which significantly reduced the workload. Potential risk suppliers can be filtered at the touch of a button and measures can be initiated.
" Compared to the competition, Tacto offers a simple and intelligent solution: instead of questionnaires comprising 40 to 100 questions, we use a targeted questionnaire with only 20 questions, which is directed exclusively at suppliers with specific needs, without overburdening them. It was also important for us to be on the safe side legally." - Mario Koch, Purchasing Manager
"Tacto's supply chain law module is 100% in line with the entire supplier module, which enables significant synergy effects and creates a uniform working basis. Tacto provides everything procurement needs to be agile - all in one place. From spend analytics to supplier management and compliance, including supply chain law. In my opinion, it's the best solution for medium-sized companies." - Daniel Rundel, SAP Process Manager Purchasing & Key User Tacto
The effort required to comply with the Supply Chain Act will now be considerably reduced for KNOLL, as a solid and future-proof basis has been created with Tacto.
KNOLL would like to delve deeper into the topic of cost modeling in particular in order to gain transparency about how raw material prices have developed and changed.
"I see Tacto as a long-term partner for us in purchasing. I particularly appreciate the mutual support and cooperation. Even if we switch to S4/HANA in 2025, this will not replace Tacto in any way. Rather, we plan to deepen our partnership by integrating additional modules and working together on new topics." - Mario Koch, Head of Purchasing
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Many thanks to Mario Koch and the entire KNOLL 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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