German Lufthansa AG

For us eCl@ss was an important step towards more transparency in the business

"Despite our heterogeneous structure eCl@ss is enabling us to participate in cross-industry product category activities."

 

German Lufthansa AG

The Lufthansa Group is a global aviation group with almost 500 subsidiaries and affiliates. It consists of five divisions that represent the areas of passenger transport, air freight, and downstream services: Passenger Airline Group, Logistics, MRO, catering and IT services.

All divisions are among the market leaders in their sectors. The Lufthansa Group employs more than 120,000 people who commit themselves to the growth of the company and thus form an important basis for the company‘s success worldwide.

 

INITIAL SITUATION

eCl@ss became an issue in the Luthansa Group with the introducion of the LUPUS desktop purchasing system. Previously, the separate companies of the Group only had individual product category trees, which made a comparison across the limits of their own company virtually impossible. Especially in indirect procurement, where material numbers are parially supplier-speciic and also vary regionally, shopping synergies could be achieved only with great manual efort.

Already then the catalog suppliers ofered an almost blanket coverage with the eCl@ss informaion on their aricles. Through the introducion of eCl@ss as an overall product category code a big step forward was made in the indirect purchasing processes of the Luthansa Group, which has opened up many new possibiliies, especially for strategic purchasing. Since then, at Luthansa a lot of posiive experiences have been gathered in product category management.

USE

Within the Luthansa Group the eCl@ss product category tree is used with priority when purchasing. Within the Group a very lean product category tree, based on eCl@ss, with just over 200 product groups is used, but is nevertheless matched directly to the eCl@ss tree. At all points in the order systems where a manual assignment of product groups is required, this reduced Luthansa view is used, which the purchaser can handle in a well-organized manner. From the catalog systems of the group the purchasing documents are automaically enriched with the eCl@ss informaion and as such low into the back-end systems for reporing and controlling purposes.

Luthansa coninues to paricipate in a number of purchasing benchmarks and is very involved in purchasing alliances beyond its own industry. To speak a common language here with the respecive partners, an eCl@ss-allocaion is essenial and makes collaboraion much easier. Purchasing is in many ways a mater of data.

CONCLUSION

To meet the growing cost pressure, it is now more important than ever to take advantage of all opportuniies for the exploitaion of synergy potenials. This applies to any company of the Luthansa Group, but also across all business segments.

A necessary condiion for the success of this strategy is the standardizaion of processes and the creaion of transparency wherever a potenial for improvement is suspected. Of course the procurement plays an important role and uses a whole range of instruments to bring the organizaions that have developed very diferently over the years back, together again to a common power. An important tool here is the eCl@ss product group tree, which helps to provide a common view of the procurement and use the strength of Luthansa in the procurement market opimally through a focused market approach.

www.lufthansagroup.com

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