ECLASS partner A.T. Kearney Europe has determined that a reduction in procurement costs of 1% has the same ultimate effect as an increase in turnover of up to 20%, depending on the industry.
In fact, procurement is an area with significant low-hanging fruit. Optimization can achieve particularly quick and good results here. For this reason, purchasing departments seek to pool and centralize procurement volumes to the greatest degree possible.
ECLASS makes it possible to analyze and bundle purchasing portfolios on the basis of consistent criteria. Vendors are completely transparent, so all related materials and products can be compared by supplier. This promotes competition between vendors, and helps consolidate the supply base. Due to the comparability of the procedure, the time taken for tenders can be reduced by as much as half in some cases.
With its adoption of the standard, Lufthansa wanted to create more transparency within the group, seeking particularly to reorganize the compartmentalized world of purchasing. An impenetrable system for order and stock numbers had made it impossible to obtain an overview. ECLASS enabled the company to leverage considerable synergies, through which the organization was once again brought closer together. A new goods-group hierarchy, which is mandatory throughout the company, restructures procurement, streamlines purchasing and significantly reduces procurement costs.
Soennecken, a leading purchasing group for office-supply needs with 500 affiliated distributors, recognized early that a single data source would solve its previous deficiencies with regard to the quality of product data. Since then, the internal product platform has been designed to be able to implement every new release. With 65,000 articles from 900 producers, this makes a crucial contribution to supplying distributors successfully. Soennecken takes its work in the expert groups very seriously, and contributes actively to the sectoral standard.
Austria’s Bundesbeschaffung (Federal Procurement Office) arranges contracts for the public sector that encompass 270,000 products and services. ECLASS helped the purchasing agency take a leading market position in tender management. While media discontinuities and manual activities previously slowed the assessment of bids, time to market has now been cut by as much as 75%. ECLASS fully supports the organization’s pan-European tenders in 16 languages. Lead time and transparency have been significantly improved, as have compliance and data security – and fewer questions are generated.