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

From mid-cap industrials for mid-cap industrials

Tacto is the leading procurement operations system for mid-cap industrials. For this, we were also awarded the BME Procurement Excellence Award (SME) by the German Association of Materials Management, Procurement and Logistics (BME).

Leading medium-sized companies trust us:

80% time savings in supplier management through digitization

Description
For 70 years, SONAX has represented a strong brand in car care, developing and producing nearly all of its cleaning and care products in-house in Neuburg.
Industry
Chemicals (focus: automotive industry)
Revenue
~ € 144 million per year

Challenge

"In 2015, Dr. Burghart, Chief Procurement Officer of SONAX GmbH, set the goal of automating and digitizing procurement processes at SONAX. Electronic procurement was intended to significantly reduce the existing time spent on manual tasks and create more room for strategic projects and procurement-related topics."

Successes

  • 80% time savings through the digitization of supplier requests and certificate management, along with automatic reminders
  • Very intuitive usability across all user levels
  • Freeing up capabilities for strategic initiatives in procurement through significant time savings in supplier management

"We didn't need a tool that required us to invest 100 hours; we needed 'plug & play,' and that's 100% what Tacto provides." - Dr. Burghart, Chief Procurement Officer

Dr. Stephanie Burghart
,
Chief Procurement Officer
SONAX

Direct increase in efficiency in terms of time and costs through data and spend transparency

Description
SED Flow Control is a subsidiary of Samson AG and is one of the leading manufacturers in the field of diaphragm valve technologies.
Industry
Diaphragm valve technologies
Revenue
~ € 16 million per year

Challenge

In the procurement department at SED Flow Control, one of the biggest challenges was the lack of transparency regarding supplier data and the procurement volume. There was no option to evaluate suppliers in the ERP system, nor was there a supplier information tool or cockpit through which data about suppliers could be obtained.

Successes

  • Holistic data transparency about suppliers and their procurement volumes and price developments
  • 80% time savings in preparation for supplier negotiations and 50% time savings in internal discussions on supplier developments
  • Direct cost savings by leveraging price potentials, which are identified at the push of a button by Tacto

Tacto saves around 20% of the time previously spent preparing for supplier meetings. Sales and price developments can be viewed at the touch of a button. Tacto also displays the general supplier performance and development at the touch of a button, thus immediately revealing risks that can be addressed directly in discussions with the supplier.

Patrick Leyhr
,
Head of Operational Purchasing
SED Flow Control

Automation of manual and operational tasks in procurement

Description
Internationally active company with 50 years of experience in mechanical and plant engineering for the pharmaceutical and food industries.
Industry
Medical device manufacturer
Revenue
~ 40 mio €

Challenge

The main challenge at Belimed Life Science was to establish a new procurement organization and to set up core procurement processes quickly and without a significant allocation of resources, while also creating transparency in the procurement activities.

Successes

  • 70% time savings through the automation of operational and Excel-based core processes, as well as data and output transparency at the push of a button
  • 80% time savings through a structured and digitized supplier management, from onboarding to certificate management, qualification, and evaluation
  • A transparent and reliable foundation for implementing targeted measures for the strategic and sustainable development of the supplier portfolio

"We onboard 4-5 new suppliers per month. With Tacto, we save ourselves 30-60 min of time per supplier."

Zvjezdan Garic
,
Head of Supply Chain
Belimed

BME award-winning project: Future-proof procurement through data-driven decisions and automation of manual tasks

Description
Development and production of complex control and steering systems for mobile machinery, utility vehicles, and specialty vehicles
Industry
Electronics Manufacturing
Revenue
~ € 25 million

Challenge

At the beginning of 2019, ME started to look for a procurement solution that, on the one hand, transparently presents all numbers, data, and facts in a procurement cockpit and, on the other hand, streamlines and digitizes lengthy strategic processes and workflows.

Successes

  • With transparency over supplier data and procurement activities, ME was able to reduce preparation time for supplier negotiations by up to 50%. 
  • Manual processes such as supplier requests, document management, and supplier onboarding processes in supplier management can be structured and automated, resulting in time savings of up to 50%.
  • The interaction of process and data world enables the strengthening of strategic procurement as well as a targeted control of the procurement department

"We were particularly impressed by the quick and straightforward implementation, as well as the engagement of the employees from day one. Employees proactively request access to the software and are highly satisfied with its usability."

Robin A. Lippmann
,
Procurement and Materials Management Manager
Mobil Elektronik

Herma creates transparency regarding raw material price developments

Description
Europe's leading manufacturer of labels and labeling machines
Industry
Industry agnostic
Revenue
approx. € 430 million

Challenge

Herma was searching for a solution to bring transparency to procurement activities and raw material price developments, in order to be better prepared for supplier negotiations and to strengthen strategic efforts

Successes

  • Co-innovation to create transparency on commodity price developments and material price transparency
  • Time savings and data transparency through evaluations of changes in demand, suppliers, categories, and articles
  • Automation of manual and Excel-based data evaluations

"Tacto is the ideal partner for us, as it is perfectly tailored to the needs of medium-sized industrials. For instance, with Tacto, we can eliminate manual, non-value-adding tasks and gain an overview of categories, articles, and suppliers at the push of a button."

Tobias Demmer
,
Head of Procurement
Herma

How Schwäbische Werkzeugmaschinen uses Tacto to establish a holistic supplier management and meet the requirements of the LkSG

Description
International manufacturer of production systems for metal processing
Industry
Mechanical Engineering
Revenue
> € 500 million

Challenge

Due to SW's rapid growth, it was nearly impossible to manually analyze all relevant data to gain transparency regarding the developments of all suppliers, categories, and articles without a procurement operating system.

Successes

  • Fully comprehensive solution that covers the requirements of the Supply Chain Act and makes it possible, piece by piece, to set up procurement more strategically
  • Very little IT effort (not even 2 days) to enter the entire supplier base into the tool
  • High acceptance of the tool by employees in procurement as well as by suppliers due to its intuitive usability

"According to our analysis, Tacto was the only provider that fits the requirements of SMEs and is also a long-term partner for our digitalization strategy in procurement. The tool offers a comprehensive solution that covers the requirements of the LkSG and enables us to gradually make our purchasing more strategic."

Matthias Schlotter
,
Head of Procurement
Swabian Machine Tools (SW)

HUBTEX - Data and spend transparency within a few weeks

Description
International machine builder in special vehicle construction
Industry
Conveyor technology and logistics
Revenue
110 million €

Challenge

HUBTEX had been looking for a procurement software since 2019 that would solve siloed data structures, create transparency around procurement activities, and automate manual procurement processes.

Successes

  • Easy implementation with minimal (IT) resource requirements
  • All numbers, data, and facts for categories, suppliers, and articles at the push of a button
  • Transparent overview of direct savings potentials and price outliers

"We just sent Tacto a file and an unedited SAP export. Within 2 weeks we had a solution that fit for us."

Sebastian Vey
,
Deputy procurement manager
HUBTEX Mechanical Engineering

Within just 3 months, immediate value was realized through the digitization of procurement, resulting in six-figure savings

Description
International manufacturer of production systems for metal processing
Industry
Mechanical Engineering
Revenue
> € 500 million

Challenge

Due to SW's rapid growth, it was nearly impossible to manually analyze all relevant data to gain transparency regarding the developments of all suppliers, categories, and articles without a procurement operating system.

Successes

  • Fully digitized procurement tailored to SW's requirements
  • Software that is intuitively usable by all employees and automates manual processes
  • Savings through Tacto alerts and transparent data analysis for supplier negotiations

"The costs for Tacto amortized themselves within just a few weeks. Tacto is the first tool where employees proactively request access. Therefore, it was not a question to collaborate in the long term."

Matthias Schlotter
,
Head of Procurement
Schwäbische Werkzeugmaschinen

Evaluate suppliers, develop them strategically and manage them in line with corporate goals

Description
For more than 100 years, Hesse Lignal has been a specialist for intelligent and sustainable coating solutions for trade and industry.
Industry
Chemistry
Revenue
~ € 110 million per year

Challenge

The overriding challenge at Hesse Lignal was to transform purchasing, establish it as a strategic value driver for the company and develop it in line with the company's objectives.

Successes

  • 80% time savings thanks to the digitalization of supplier queries and certificate management as well as the reminder function
  • 60% time savings in the supplier evaluation process
  • Strategic alignment of purchasing through massive time savings in operational activities

With the support of Tacto, we in Purchasing can focus on the really important and strategic questions, namely 'How do we manage the product groups and suppliers based on our strategic goals?

Tobias Gaub
,
Head of Procurement
Hesse Lignal

Schedule meeting

Get to know us! I would be happy to guide you through our software in a short phone call and to work out the potential for your company together.

  • Digitization check of your procurement
  • Individual consulting for you and your team
  • Insight into all product functions
  • Tailor-made to your focus aspects

Do you have further questions? Contact us now.

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