TGW Logistics Saves 2.4 Million Euros in Process Costs in One Year With JAGGAER

TGW Logistics, one of the world's leading providers of highly automated intralogistics solutions, relies on JAGGAER's software solutions for its source-to-pay activity, originally with the aim of increasing the level of automation and boosting operational efficiency. Today, however, TGW Logistics is also benefiting from significant cost savings: in 2023 alone, process costs were reduced by around 2.4 million euros.

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TGW Logistics decided to introduce JAGGAER One back in 2016, as the company's growth had led to new challenges in global purchasing. Processes could in fact no longer be adequately managed with the previous process and IT infrastructure because TGW Logistics has a heterogeneous product range with a large variety of parts, which requires enormous precision and flexibility due to the large number of global procurement processes. The new tool had to respond to these needs and provide greater efficiency. After a comprehensive comparison of providers, TGW Logistics finally opted for the source-to-pay suite from JAGGAER. According to Lisa Steininger, SCM Process Manager at TGW Logistics, the procurement expert was above all impressed with JAGGAER’s comprehensive service portfolio and professional advice, making the company the ideal choice to meet their requirements.

Significant increase in operating efficiency

Originally implemented primarily as a central tool for order optimization, JAGGAER One has now also become indispensable in other areas too. The company, headquartered in Marchtrenk, Austria, currently uses a range of modules such as Supplier Relationship Management, Sourcing, Contract Management, E-Procurement - in particular for order processing in direct procurement - as well as the ratings from Quality Management. The interface to the SAP/4 HANA ERP system integrated in JAGGAER also offers great added value. The seamless data exchange between the systems has made a significant contribution to increasing operational efficiency: "With JAGGAER, we were able to automate routine activities and thus gain more time for process improvements," explained Lisa Steininger. "This not only led to optimized workflows, but also to significant cost savings."

This can be seen, for example, in the area of e-procurement: last year alone, TGW Logistics placed over 55,000 orders with suppliers, all of which were triggered in SAP and transmitted to JAGGAER. Although it is always possible to process individual orders manually, the majority of orders at TGW Logistics are generated automatically. This also applies to order confirmations from suppliers, which are automatically mirrored from JAGGAER to SAP. This no-touch workflow provides a considerable increase in efficiency and reduces both the effort and the risk of errors caused by manual intervention to a minimum. This is also the case in the area of sourcing, where the company processed more than 3,400 tenders via JAGGAER One in 2024. Tenders for direct material are also created in SAP and automatically transferred to JAGGAER, while more complex requests - such as for extensive projects - are created directly in the JAGGAER One platform. In addition, the tool makes it easy to compare offers from different suppliers, automatically notifies them of the award decision and finally triggers the offer feedback to SAP so that information records are automatically updated.

All supplier data at a glance

TGW Logistics also benefits from a comprehensive 360° view of the more than 1,700 connected suppliers thanks to JAGGAER's supplier management. This means that the purchasing teams have an overview of all relevant data, ratings, supplier-specific documents and certificates at all times, which enables even more targeted negotiations. The tool also facilitates the registration of new suppliers and ensures an efficient and smooth onboarding process thanks to user-friendly questionnaires and automatic reminders when information is missing. TGW Logistics also sees the user-friendly and intuitive user interface of the JAGGAER software as a major advantage.

The next steps are being planned

JAGGAER and its solutions are therefore of decisive strategic importance for the company and are a key success factor for increasing efficiency and cutting costs. For this reason, TGW Logistics is planning to integrate JAGGAER even more closely into its procurement and supply chain processes in the future. Specifically, the expansion of supplier management is on the agenda: the aim is to further optimize onboarding, to automatically derive suitable measures from supplier evaluations with the help of JAGGAER's Action module, and to focus even more on risk management. TGW Logistics would also like to increase the proportion of inquiries processed via the sourcing module to up to 100% and integrate additional criteria - particularly in the area of sustainability - into the tenders in future.

"Companies today face rising costs in all areas, which makes the identification and utilization of potential savings critical. What TGW Logistics has achieved with our JAGGAER solutions is an ideal example of what is possible with the right purchasing tools. We are delighted to be able to support the company on this journey and look forward to the next steps," said Jochen Krüger, Vice President Germany, Austria & Switzerland at JAGGAER.

About JAGGAER:

JAGGAER is a global leader in enterprise procurement and supplier collaboration, and the catalyst for enhancing human decision-making to accelerate business outcomes. We help organizations to manage and automate complex processes while enabling their highly resilient, accountable, and integrated supplier base. Backed by 30 years of expertise, our proven AI-powered industry-specific solutions, services, and partnerships form JAGGAER One, serving direct and indirect, upstream, and downstream, in settings demanding an intelligent and comprehensive source-to-pay solution. Our 1,200 global employees are obsessed with helping customers create value, transform their businesses, and accelerate their journey to Autonomous Commerce. www.jaggaer.com

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