IL-Beratungsgespraech

Beratungstermin vereinbaren

Sie planen, eine unserer Lösungen neu einzuführen oder zu erweitern?
Wir beraten Sie gerne!

Termin vereinbaren

IL-e-mail-weiss

Schließen Sie sich über 15.000 Lesern an!

Melden Sie sich jetzt für unseren Newsletter an und bleiben Sie stets up-to-date zu ERP, Best Practices und Business-News!

Jetzt anmelden

    Search

    Reference EGGER

    Procuring services with eProcurement

    With the decentralized ordering of services via the DIG e-procurement platform, the world's leading manufacturer of wood-based materials is taking the next hurdle on the way to the best possible automation in procurement. "We are aiming for up to 75% automation - by 2022. We have found the right partner for this in DIG," says Gerd Hesse, Head of Purchasing Technology for Germany.

    egger-400x200

    Industry: Manufacturer of chipboard and fiberboard

    Web: egger.com

    Learn more

    Two locations bundle the driving forces in the EGGER Group with 19 international plants: Brilon in Germany and St. Johann/Tyrol in Austria. "We work as a team across several countries to create the conditions to exploit our potential in strategic purchasing. We combine as many perspectives as possible to create solutions that can be used throughout the Group - including e-procurement for services," explains Dominik Lenz, Purchasing Technology in Brilon.

    First mover in service procurement

    After the successful introduction of DIG E-Procurement around eight years ago, the desire to map service procurement in a decentralized process soon arose in view of increasing outsourcing . "At first I thought, we're not the only ones working with service providers. There must be a ready-made solution. I was all the more surprised to find the opposite. And the deeper we delved into the complexity of our requirements, the clearer it became for us to play a kind of first-mover role here," recalls Hesse. And this role was a demanding one: "We wanted the system to be as easy to use as possible and it had to be self-explanatory in order to motivate new user groups and make it easier to connect additional locations. At the same time, it had to include all processes for future use. We were in danger of despairing at some points with this task, but the development tandem with our project team and DIG ultimately led us to our goal!"

    > Together with the site in Tyrol (see picture at the top), the EGGER plant in Brilon/Germany launched the initiative for greater procurement efficiency throughout the Group.

    Ordering with multiple parties

    "The way we work is that the requester enters a BANF into the system. This can be, for example, any maintenance work such as electrical work or painting. This is accompanied by an estimate of the work involved, i.e. how many hours the service provider will need in order to obtain a cost framework," explains Lenz. "But of course, an estimate can also be made with a subsequent offer from the supplier." According to the rules of the SAP system used, an order itself can only be triggered by a manager with budget responsibility- but this person is often not the actual requester: "That's why there is a field in the form where the EGGER contact person is specified as the technical coordinator on site." This person is the contact for the supplier, goes through the work with them, confirms the proof of performance, etc. " The supplier then uses his own access to the system to enter his expenditure, i.e. the hours worked. Any surcharges for work on public holidays or similar are automatically taken into account. The manual performance record is also uploaded here ."

    Dealing with deviations

    "It is in the nature of the service that hourly estimates and actual expenditure are not always congruent," says Hesse, explaining the reason for specific approval processes depending on the extent of the additional work. The technical coordinator is involved in the approval process if there is an overrun of 25% or more . The technical coordinator checks the plausibility of the overrun and the manager only receives a notification. "Alternatively, the manager can also take the matter into their own hands. This is different if the limit is exceeded by more than 60%, in which case the coordinator is skipped and the case is dealt with directly by the manager." These limits can be set flexibly - and not just for each supplier. Lenz gives a practical example of this function: "This is particularly important for projects such as the construction of new plants. It makes sense to reduce the percentage values in order to be able to react to cost overruns in individual trades at an early stage to ensure the costing reliability of the overall project."

    Go-live and roll-out

    After around 1 .5 years of implementation and a 6-month test phase, the go-live took place at the Brilon site: "From the second or third connected supplier, the different working methods became apparent - adaptations were necessary, which were implemented flexibly by the DIG team," Hesse and Lenz report on a steadily growing process, the benefits of which he is convinced. "After around 460 orders in the past 18 months, we are more than satisfied. The expected time advantage has materialized, which confirms the enormous potential for our group!" Accordingly, the system is currently being rolled out at the Wismar and Gifhorn sites. " The ease of use of the system has won over our initially skeptical colleagues from the other plants. Further locations are to follow in the coming months, including from other countries."
    While seven suppliers are currently connected in Brilon, the two new sites are starting with one each: "We deliberately chose the suppliers who do the most work in day-to-day business. But of course we want to connect many more as quickly as possible so that the benefits are maximized on a day-to-day basis!"