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

Short decision-making processes and no long IT projects

published on
30.11.2023

Anlagenbau Günther GmbH

🏗 Industry: Recycling technology

🗺 Company headquarters: Wartenberg (Hesse)

🧍 Employees: ~ 140

💶 Turnover ~ € 33 million per year

For several decades, Anlagenbau Günther GmbH (ALBG), which will celebrate its 100th anniversary in 2024, has represented an outstanding brand in the recycling industry. ALBG specializes in the production of sorting, separating and screening machines for the environmental and recycling industry. These innovative technologies play a crucial role in reducing waste and recovering valuable raw materials from waste. In this way, they make a significant contribution to preserving the environment. All technologies are developed, designed and built in-house at the Wartenberg site.

"It took less than two days for our IT department to create the required SQL scripts. Tacto provided exactly the CSV files we needed and the scripts could be customized within two days." - Matthias Stier, Head of Controlling & IT

Download success story

Initial situation and challenges

For Mr. Keller, Purchasing Manager at ALBG, the year 2022 represented a turning point for future procurement. The effects of the coronavirus pandemic and the war in Ukraine led to significant challenges on the procurement market, which did not leave the recycling machine manufacturer unaffected. The procurement markets were characterized by uncertainty due to the unavailability or poor availability of many items as well as supply chain disruptions. The strong price fluctuations for certain products and raw materials were particularly problematic for ALBG.

"We were receiving price increases from suppliers on a daily basis and it seemed difficult to find an anchor that would protect us from sudden jumps in costs. In these turbulent times, we were looking for help to keep the story on track and cushion the impact on our business." - Torsten Keller, Purchasing Manager

Overall, the COVID pandemic and the war in Ukraine have highlighted for Mr. Keller the need to adapt processes in procurement in order to be more resilient and better prepared for unforeseen events. The ability to react quickly to changes in global markets and minimize risks became a critical priority. Mr. Keller set out to find a suitable tool that could accompany him on the path to resilient purchasing and serve as an anchor in these turbulent times. It was particularly important for him to find a solution that was suitable for SMEs and required only minimal IT capacities.

The implementation process

After a thorough review of the market, Tacto was chosen as the partner for setting up a future-proof purchasing system. The software solution was able to convince both Mr. Keller and the management in particular with its tailor-made approach for medium-sized companies.

The contract was signed at the end of January 2023, and the data upload could begin as early as the beginning of February 2023. It took less than two days for the IT department to create the required SQL scripts. Tacto provided exactly the CSV files that were needed (8 files in total) and the scripts were customized within 2 days by the IT department.

Another plus point was the seamless integration of the AMS ERP system used with Tacto. The CSV files could be easily extracted from the ERP system and made available to Tacto, which made the entire process even more efficient.

Compared to other software providers, which often take months to implement, Tacto impressed with its agile and professional approach. The rapid implementation and smooth interaction undoubtedly made the software solution a reliable and efficient partner for ALBG. In addition, communication during the implementation was very structured.

"This smooth process went extremely quickly and was undoubtedly an example of efficient collaboration." - Matthias Stier

‍Tactoas THE solution

Thanks to the analytics module, ALBG receives the greatest added value in the form of the opportunity to focus more on strategic purchasing. The data and information are processed in detail at article, product group and supplier level, driven by ABC, which offers enormous potential. The rapid preparation of the data has significantly reduced the preparation for supplier meetings and made the entire process far more productive and efficient. This makes it possible to concentrate more on the actual strategic aspects of purchasing and make well-founded decisions.

In addition, ALBG now has the ability to identify price outliers at an early stage and track price developments. This real-time insight into price development and stability is invaluable, as it enables the company to react better to market fluctuations and conduct strategic price negotiations with suppliers.

Overall, the integration of the analytics module has meant significant progress. It enables the company to make data-driven and well-founded decisions, optimize the purchasing process and at the same time focus on long-term strategic goals.

"From the introduction to the target management: very structured and target-oriented. Tacto scores above all with its short decision-making processes - from SMEs for SMEs - and everyone is true to their word." - Torsten Keller

Outlook with Tacto

"We see Tacto as a long-term partner and companion for the future. There are still many challenges ahead of us, such as the Supply Chain Act. However, we are convinced that we have found a partner who will support us in all these upcoming tasks and take a pragmatic approach to things together with us. We want to continue to develop with and on the system and work together to leverage the potential in our purchasing department." - Torsten Keller

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Many thanks to Torsten Keller and Matthias Stier and the entire team at Anlagenbau Günther for our partnership and trustworthy cooperation.

Through partners and customers like you, it is possible to further develop our product in close exchange and close to the daily business, as well as to talk in joint webinars about the topics that concern the procurement of medium-sized industrial companies today.

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