Purchasing process: More efficiency through a global sourcing structure
The Norma Group uses a global sourcing structure with around 20 purchasing managers for its internal purchases. In 2020, expenses for goods and services that do not flow into production amounted to around 404 million euros and internal purchases comprised over 30 percent of all sourcing processes. The large number of stakeholders and product groups makes the internal purchasing process complex. The requirements for the new tool are correspondingly high – accessible to all around 9,000 employees if it is to standardize internal purchasing in the 27 plants worldwide. Using a catalog system, the integration of contractually stipulated prices and quantities is intended to optimize supplier and expenditure management.
Global rollouts after a successful pilot project
Together with Jaggaer, the Norma Group established the “Norma Store”, an internal shopping portal. Jaggaer’s software maps the part of indirect purchasing, from purchase to order, while the other process steps are handled by the ERP system. The standard was developed for all other plants on the basis of a pilot project. “Jaggaer gave us excellent support in testing the solution intensively. We were able to get to know the modules, run through the processes in a practical way and get the migration of data from previous systems under control. The Norma Store was then rolled out globally as the standard in all other plants and adapted to local circumstances, ”reports Niklas Heckelt, Project Manager Purchasing Systems & Processes at the Norma Group, on the relevance of the pilot project.
Purchasing process: New level of standardization achieved
The catalogs in the internal Norma store map over 2,000 suppliers, some of which have their own catalog in the system, while others can be searched using free text. In this way, global or regional bundling of orders is possible for the first time for the manufacturer, which brings considerable cost savings through volume discounts. Thanks to the transparent supply chain, the detailed overview of all internal company expenses and the standardization of data, purchasing managers are able to analyze their expenses and cost efficiency more quickly and more precisely. The time saved is also considerable, as users have to make significantly less manual entries.
Niklas Heckelt is convinced that choosing Jaggaer was the right decision and is already looking to the future: “We have now learned even more about how communication between the individual Jaggaer One modules works. There is still a lot of potential in there – we would like to accelerate this in the future in order to make even better use of the entire system. ”
The Norma Group is one of the market leaders for highly developed and standardized connection technology and fluid transport systems. With around 9,000 employees, the group of companies supplies customers in over 100 countries with more than 40,000 product solutions. The group’s products help reduce emissions that are harmful to the climate and use water efficiently. The innovative connection solutions are used in systems for water supply, irrigation and drainage, in vehicles with conventional or alternative drive types, in ships and airplanes as well as in buildings.
Jaggaer is a provider of SaaS-based procurement solutions that encompass the entire source-to-settle process, including spend management, category management, supplier management, sourcing, contract management, e-procurement, invoice processing, supply chain management and inventory management. These core purchasing processes are all located on a single platform, the Jaggaer One. (sg)