In 2017, the company, which is headquartered in the German town of Blieskastel and sells products in over 120 countries, benchmarked its purchasing organization. This assessment revealed that while all processes were running smoothly, many of them were too complex. In order to find a suitable way to optimize its purchasing processes and improve them, the Hager Group first needed a comprehensive analysis of those processes. It chose Tata Consultancy Services (TCS) as its partner for the analysis and consulting.
Advanced analytics reveals the potential for optimization.
The consultants from TCS had proposed a detailed advanced data analytics concept, in contrast to traditional methods of organizational design, to improve the Hager Group’s purchasing organization. Leveraging their expertise in procurement and in designing organizational processes, the TCS consultants had in-depth discussions with the employees and managers of the Hager Group involved in procurement, and ensured that the customer’s team accepted the process and the associated changes. During the analysis phase, which followed the discussions, the TCS team used advanced analytics to examine all digital records related to the Hager Group’s purchasing processes. For example, they questioned why orders were placed with certain suppliers as opposed to others. They also looked at who was responsible for specific orders, identified any inefficient or non-standard processes, and determined which processes could be digitized or automated.
“We wanted to know how we could improve the setup of our purchasing organization. After TCS performed an analysis, we had actual figures and were able to start implementation right away. Because the results of the analysis were so well prepared, our team responded very positively to the suggestions for improvement.” Bernd Kehl, Vice President and Global Head of Purchasing, Hager Group
The analysis by TCS’ consultants found that many routine tasks were still being performed manually, product groups were not always sorted consistently, and there were many decentral structures.
The analysis visualized all process steps down to the last detail, which helped the people responsible for the project to immediately implement and optimize the structure of the purchasing organization. The results of the analysis were presented very clearly, which ensured that the Hager Group’s employees could quickly accept the necessary changes. This significantly contributed to the success of the project.
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