Digital Procurement for Schunk Group

Comprehensive digitization project of the Schunk Group: amc developed a consistent digitization strategy for the procurement department. Now a group-wide procurement platform is being implemented. Procurement becomes much more efficient.

The Schunk Group is a multiple hidden champion. Cars, ICE locomotives and mobile phones are tested for weather resistance in climate chambers of the corporation. The carbon brushes of robust electric motors, the ultra-welding technology used to manufacture cable harnesses, Li-ion batteries and power electronics are made by Schunk. In addition, there are high-tech products and systems for ceramic materials and sintered metal. Leading in many markets is the strategy of the global company, which employs 8,200 people worldwide.

Digitization Roadmap for Procurement

The heterogeneous Group environment with its broad range of products and services and four large Group entities is a challenge for Procurement. Especially when it comes to developing a Group-wide digitalization strategy for procurement and implementing a universal procurement platform. Knut Grothaus, Head of Corporate Procurement, therefore opted for support from the amc Group: „amc guided us through a very structured digitization project in our heterogeneous and organizationally complex group. With our own available resources, we would not have achieved these results at this speed and quality. This enabled us to successfully complete the project on schedule and within budget,“ says the procurement manager with satisfaction.

This is how amc proceeded with the Schunk Group

Together with representatives of the most important Group entities, the actual processes and their maturity level were defined first. The target processes were defined based on the amc procurement function model. This resulted in a roadmap which prioritizes the processes for digitization. 45 future operational, tactical and strategic processes in procurement (defined and documented in text and flow charts) ultimately formed the basis for the functional, technical and IT-relevant requirements for the procurement software. All of this was incorporated into a comprehensive specification.

Clear efficiency Benefits in Procurement

The further procedure also followed the amc structure: supplier long list based on the amc eSolution finder was developed. Then a market inquiry, evaluation and negotiation of the final conditions with the selected supplier took place. At the same time, a comprehensive cost/benefit analysis was developed for the internal project application. The business case contained a significant benefit expectation in the double-digit million range. „Thanks to amc’s many years of digitization expertise, we were able to achieve significant efficiency advantages, especially in the context of scoping, for the digitization roadmap and in the subsequent target process definition,“ explains Procurement Manager Knut Grothaus. The procurement department also trusts on support of amc for the upcoming implementation of the new eSolution.

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