NORMA Group Standardizes and Digitalizes the Internal Purchasing Process in 27 Global Plants
- Press Release
- Source to Contract
Bundling of orders ensures more efficiency and enables cost savings.
The NORMA Group, international market leader for high-quality connection technology, has successfully rolled out an internal purchasing portal worldwide, working with JAGGAER. The “NORMA Store” offers transparent insight into the company’s expenditure. The integrated catalog function ensures improved supplier management and enables cost savings through bulk orders. These can also be traced from entry in the NORMA Store through approval to the delivery of the goods.
Promoting efficient global purchasing processes
The NORMA Group uses a global sourcing structure with around 20 purchasing managers for its internal purchasing. In 2020, expenses for goods and services that do not flow into production amounted to around €404 million and internal purchases comprised over 30% of all sourcing. The large numbers of stakeholders and product groups make the internal purchasing process complex. The requirements for the new solution are correspondingly high – it must be accessible to every one of the firm’s approximately 9,000 employees if it is to standardize internal purchasing in the 27 plants around the world. Using a catalog system, the integration of contractually stipulated prices and quantities is intended to optimize supplier and expenditure management.
Global rollout following successful pilot project
Together with JAGGAER, NORMA Group established an internal shopping portal, the NORMA Store. JAGGAER software covers the part of the indirect purchasing process from purchase to order, while the other process steps are traditionally 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 a grip on the migration of data from legacy systems. NORMA Store was then rolled out globally as the standard in all other plants and adapted to local circumstances,” so says Niklas Heckelt, Project Manager Purchasing Systems & Processes, highlighting the relevance of such a pilot project.
A new level of standardization ensures efficiency and cost savings
The catalogs in the internal NORMA Store show more than 2,000 suppliers, some of which have their own catalogs in the system, while the others can be searched for using free text. In this way, NORMA Group has for the first time been able to bundle orders globally or regionally, which results in 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 fewer manual entries.
Niklas Heckelt is certain that the path chosen with JAGGAER was the right one and is already looking to the future: “We have now learned even more about how communication between the individual JAGGAER modules works. There is still a lot of potential in there – we want to accelerate this in the future in order to make even better use of the entire system.”
About Norma Group
NORMA Group is an international market leader in engineered and standardized joining and fluid-handling technology. With around 9,000 employees, NORMA Group supplies customers in over 100 countries with more than 40,000 product solutions. NORMA Group supports its customers and business partners in responding to global challenges such as climate change and the increasing scarcity of resources. NORMA Group’s products help reduce emissions harmful to the climate and use water more efficiently. Its innovative joining solutions are used in water supply, irrigation and drainage systems, vehicles with conventional and alternative drive systems, ships and aircraft, as well as buildings. NORMA Group generated sales of around EUR 952 million in 2020. The company has a global network of 27 production sites and numerous sales offices in Europe, North, Central and South America and the Asia-Pacific region. Its headquarters are located in Maintal near Frankfurt am Main. NORMA Group SE is listed on the Frankfurt Stock Exchange in the regulated market (Prime Standard) and is a member of the SDAX.
About JAGGAER: Procurement Simplified
We drive customer value for buyers and sellers through our global connected network served by offices located in the Americas, APAC, Asia and EMEA. JAGGAER develops and provides comprehensive source-to-settle SaaS-based solutions, including advanced Spend Analytics, Category Management, Supplier Management, Sourcing, Contracts, eProcurement, Invoicing, Supply Chain Management and Inventory Management. These all reside on a single platform, JAGGAER ONE. JAGGAER has pioneered spend management solutions for more than 25 years and continues to lead the innovation curve by listening to customers and stakeholders in all industry sectors, public services and academia.
JAGGAER Media Contacts:
Corporate Ink for JAGGAER
Tel.: +49 (0) 211 730633-60