Optimal Ordering Processes at WOLF for Heating and Ventilation Technology
The WOLF Group, one of the leading system suppliers of heating and ventilation systems, has been relying on REMIRA SUPPLIERCOLLABORATION.NET since 2009 - with success: In addition to winning the BME "Excellence in eSolutions" award, WOLF was able to achieve a significant increase in productivity and cost reduction per procurement process. The electronic procurement solution led to partially or fully automated processes that give employees more time for value-adding activities - an important aspect for a company that puts people at the center of its work.
Supply Chain Collaboration with REMIRA SUPPLIERCOLLABORATION.NET
The guiding principle of the service-oriented system provider for heating, air-conditioning, ventilation and solar technology with around 2,100 employees is "PERFECTLY IN TUNE WITH YOU". The WOLF Group is a subsidiary of Centrotec SE and is internationally positioned with ten subsidiaries and 60 sales partners worldwide. Its product range covers the entire spectrum of modern and energy-saving heating and ventilation technology. WOLF thus underpins its positioning as an expert for healthy indoor climates and ensures the best quality of life indoors, where people spend around 90% of their lives. In 2009, WOLF decided to use REMIRA SUPPLIERCOLLABORATION.NET (at that time still abbino SCM Collaboration Platform) in order to avoid having to manually process the approximately 100,000 orders and delivery schedule call-offs per year and to be able to better use valuable personnel resources elsewhere. Ernst Kranert, head of purchasing at the WOLF Group, still remembers the selection process:
"We wanted a software that was easy to use for our suppliers with a high interface diversity and a good price-performance ratio. SUPPLIERCOLLABORATION.NET also offered customized programming and was 100% web-based. After all, we had to convince our suppliers of the advantages of electronic order processing - so we wanted to spare them the effort of implementation."
All-in-One SCM Collaboration
REMIRA SUPPLIERCOLLABORATION.NET is an "all-in-one SCM collaboration" solution that automates and optimizes all operational and tactical purchasing processes. The web portal supports the complete P2P process and reliably secures the entire supply chain. From inquiry management in eAuction to electronic order processing and electronic invoicing, SUPPLIERCOLLABORATION.NET supports all tactical and operational purchasing processes. At WOLF, various modules of the SaaS solution are in use. On the one hand, orders and order confirmations are processed electronically, so that the operational processes run automatically and the order data is available centrally and transparently to all users.
"Thanks to the partially or fully automated processes, we were able to achieve a significant reduction in administrative work. We can now concentrate the approximately 3 FTEs saved on value-adding activities."
WOLF also benefits from the Kanban concept with SUPPLIERCOLLABORATION.NET. In this case, the suppliers take over the supply of certain materials to WOLF on their own responsibility and orient themselves to the filling levels of the Kanban containers to be supplied. For the suppliers, there is a rolling evaluation of their performance, which has resulted in a significant increase in quality and delivery reliability. In addition, the number of special trips has dropped significantly: "The suppliers all strive for a 100% evaluation, which in turn only brings advantages for us. We also use the Forecast module, which visualizes a preview of materials to be delivered in the future in SUPPLIERCOLLABORATION.NET. Suppliers receive an overview on a monthly basis of all intended items or materials that may be ordered."
Advantages for WOLF and the Suppliers
The automated processes support day-to-day business at WOLF and provide more transparency in the area of ordering processes and forecasts. This makes it easier for WOLF to meet customers' demands for short delivery times and also makes work easier for the approximately 300 connected suppliers. For Ernst Kranert, it was important to convince smaller and medium-sized companies of the advantages of the electronic procurement solution. And he has succeeded in doing so, because the feedback from suppliers has been almost entirely positive. In particular, the user-friendliness and the transparent and efficient processing without implementation were praised from the supplier's point of view.
Another important module for WOLF is the overseas transit module. In SUPPLIERCOLLABORATION.NET, it visualizes and monitors the transit quantities between the suppliers' port of shipment, the interim storage facility in the Netherlands and the on-site warehouse in Mainburg. "After the materials have been shipped by the suppliers, the transit quantities are first transported to an intermediate storage facility in the Netherlands. Wolf calls off its material there and transports it to its warehouse. The three players can therefore track and control the transit quantities to be monitored in the overseas transit module. This means that it can be determined with certainty exactly where the material is on its way to Wolf and when it is expected to arrive," says Ernst Kranert, explaining the advantages of the module. By using SUPPLIERCOLLABORATION.NET, WOLF has been able to increase on-time delivery from 80% to 98% and achieve a 19% reduction in costs per procurement transaction in operational purchasing. The 24% increase in productivity in operational purchasing also created more capacity for more highly qualified tasks.
Award and Fast ROI
In 2012, WOLF Heiztechnik received the "Excellence in eSolutions 2012" award from the German Association of Materials Management, Purchasing and Logistics (BME) for its use of SUPPLIERCOLLABORATION.NET in the category SME. The electronic connection of the 300 suppliers resulted in significantly improved transparency in the development of requirements, and the prompt transmission of requirements reduced safety stock levels. Due to the increased order situation, WOLF was able to handle the 32% increase in stock turnover for raw materials, consumables and supplies with the same personnel. "We are pleased to have such a competent and experienced supply chain partner in REMIRA. The cooperation was fast and without complications and we were able to convince our management immediately at that time due to the promised fast ROI. The promise was kept, because the acquisition had already paid for itself after one year," says Ernst Kranert, summing up the many years of successful cooperation with REMIRA.
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