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09 August 2017

eProcurement: Instant Transparency

ifm Achieves Better Prices in Indirect Procurement with JAGGAER solution

Vienna | Research Triangle, NC, USA | Essen, August 09, 2017 – ifm, the specialist for sensors in automation technology, has said goodbye to manual processing in indirect procurement once and for all. With the eProcurement digital procurement tool from JAGGAER, provider of the world’s most comprehensive Source to Pay (S2P) indirect and direct solution suite, more than 6000 employees will soon be able to submit and track requests. Additional functions such as SSO (Single Sign On) and the user-friendly interface increase performance. ifm can use the tool to negotiate prices for indirect materials more easily and more quickly. Read the whole success story!

ifm electronic gmbh, a leader in automation technology, has always been ahead of the curve when it comes to using digital processes in indirect procurement. The catalog solution that the company had been using could no longer keep up with ifm’s growth. The company now buys more than 7,000 catalog items from approximately 850 suppliers, and processes more than 2,500 free text purchase orders per year. The scale and range of the company’s processes could no longer be covered satisfactorily, and ifm had limited control over the selection of catalog providers. The external platform between the sensor specialists and their suppliers also left little room for negotiating prices. Leo Grenz, who is responsible for organizational projects in procurement at ifm, concisely summarizes the company’s needs as follows: “We wanted an eProcurement tool that would be free for our suppliers to use and would make us more flexible by giving us the opportunity to select our own catalog providers and negotiate our prices more independently.”

The decision to implement an eProurement tool that would be integrated into the ERP system and would be compatible with other systems in the company was a logical next step. JAGGAER has long been ifm’s partner of choice for addressing complex procurement issues. Since the two companies began working together in 2009, ifm has been handling procurement and RFQs for production materials, and strategic supplier management using JAGGAER’s solution. By adding pure eProcurement, ifm now controls its own catalog management, which is connected to procurement processes in the system. 

Say Goodbye to Manual Processing 

Price negotiations and the selection of catalog providers are no longer limited, and even items that are not in a catalog can be easily purchased using the system. Previously, these kinds of PREQs had to be processed manually by Procurement, which was a more time-consuming process that resulted in more errors. Soon, free-text PREQs will trigger an automatic workflow that will turn PREQs into purchase orders. This completely eliminates the need for any manual steps for Procurement. ifm can now select their catalog providers on their own and negotiate prices more independently. 

Immediate Transparency

In addition to shorter processing times, eProcurement also ensures transparency for its users thanks to its simple user interface. Each user can track his or her PREQ in JAGGAER, and can instantly access all of the relevant data without searching in an external sub-system or contacting a third party, meaning that users only have to sign in once during the process. The tool is easy to use and has an intuitive, clear interface. Leo Grenz confirms that: “A system that is going to be used by many users must be simple, transparent, and self-explanatory. eProcurement fulfills offers precisely that level of comfort.”

About the ifm Group: Measuring and controlling - When it comes to pioneering automation technology, ifm electronic gmbh is the ideal partner. Since the foundation of the company in 1969 ifm has shaped industrial automation by continuous new developments in the field of sensors, controllers and systems. Today the family-run business in second generation with about 6,000 employees in 70 countries is among the world-wide industry leaders. ifm‘s exceptionally large product portfolio does not only cover all relevant standard solutions but also the special requirements of individual industries. In 2016, the company achieved a turnover of more than 775 million euros. 

About JAGGAER: Global Indirect and Direct Spend Management Solutions: JAGGAER offers the only comprehensive and complete spend solution suites enabling commerce between any businesses, anywhere. We pioneered spend solutions over two decades ago and have continued to lead the innovation curve by listening to customers and analyzing the market. Our solutions suites are trusted by the world's largest higher education, manufacturing, pharmaceutical, life sciences, automotive, engineering, construction equipment, serial production and medical technology companies. Our indirect and direct spend solutions suites collectively form a global network processing billions of dollars in annual spend between 900+ customers and 2.5 million suppliers. JAGGAER’s SaaS based, Source to Pay (S2P) solutions enable an efficient relationship between buyers and suppliers, covering the entire spectrum of needs, from spend analysis to sourcing, through contract and supplier relationship management. Additionally, JAGGAER holds 38 patents, more than any other spend management company, and acquired POOL4TOOL in 2017. Learn how our solutions can power your organization. |