Running a business in today’s environment is increasingly complex, with supply chain challenges, geopolitical tensions, evolving regulations, and other disruptions becoming standard. This complexity is amplified for organizations like KION Group AG with a global footprint, necessitating strong relationships and clear communication with suppliers at every level to respond proactively to shifting market conditions.

Based in Frankfurt, Germany, KION is a global leader in material handling equipment and supply chain solutions. Established in 2006, KION operates a multi-brand business portfolio, including renowned brands like Linde Material Handling, STILL, Dematic and Baoli. With operations spanning over 100 countries, KION has deployed more than 1.8 million units worldwide, making it a key player in modern supply chains and warehouse automation. 

Despite its success, KION faced significant challenges in managing its extensive supplier network and procurement processes. “For the mitigation of supply chain and business risks, we need closer integration and easy collaboration with our suppliers,” said Jens Brethauer, VP of e-Procurement & Digitalization at KION.

To achieve an optimal level of connectivity, KION turned to QAD Supplier Relationship Management (SRM) to support the global manufacturer in cultivating strong relationships and maintaining clear communication with suppliers across all levels.

Overcoming Manual Processes and Disconnected Systems

KION’s procurement process relied heavily on manual communication methods, such as emails and phone calls, to interact with suppliers. This approach was increasingly insufficient for a company of its scale. The inefficiencies of manual data management hindered KION’s ability to create sourcing events quickly and maintain seamless supplier relationships. 

Key challenges included:

• Supplier Management Complexity: Coordinating with suppliers across regions was cumbersome, slowing decision-making and response times.
• Time-Consuming Sourcing Events: The manual creation of Request for Quotes (RFQs) was labor-intensive, detracting from strategic procurement activities like negotiation.
• Performance and Capacity Tracking: Evaluating supplier capacity and performance lacked the streamlined infrastructure to ensure consistency and effectiveness.
• Global Standardization: KION needed a unified, standardized process for global procurement while accommodating regional nuances.

“The main motivation for searching for an advanced and dedicated solution was reducing the manual effort, increasing efficiency, accelerating collaboration, and also, finally, to save money,” added Brethauer.

Enhancing Procurement Operations and Supplier Collaboration with QAD SRM

To address these challenges, KION implemented QAD SRM with a focus on its Supplier Data Management, Sourcing and Auctions modules. This marked a critical step in KION’s digital transformation journey. 

The solution allowed KION to centralize procurement operations, standardize workflows globally, and improve supplier collaboration. “We want to offer one central place where we maintain data, where we are connecting all the satellite solutions that we have out there and really offer a homogeneous process framework, so that means having the same capabilities everywhere around the globe,” explained Gero Bernhardt, Director of Digital Procurement at KION. 

Specific improvements included:

• Unified Platform: QAD SRM provided a single interface for managing all procurement processes, ensuring consistency across regions. It eliminated the inefficiencies of scattered communication methods by consolidating data and collaboration tools.
• Enhanced User Experience: The intuitive design of QAD SRM and its guided wizards simplified complex tasks, increasing user adoption rates among both KION employees and suppliers.
• Seamless Communication: Real-time data exchange and integrated communication tools allowed for faster decision-making and streamlined workflows, enabling enhanced collaboration and proactive responses to market changes.
• Flexibility and Customization: QAD SRM offered tools like auctions, RFQ automation, and performance management, enabling KION to tailor processes to meet specific needs.

QAD SRM Delivers Enhanced Efficiency, Savings and Collaboration for KION

The implementation of QAD SRM revolutionized KION’s procurement processes, delivering measurable results including efficiency gains, cost savings, enhancing collaboration and integrated systems.

“QAD SRM changed our work life definitely because there’s now much more time left to negotiate better prices and save costs,” added Brethauer. 

Efficiency Gains

• 90% Reduction in RFQ Creation Time: The time required to create an RFQ dropped from several hours to just minutes, freeing resources for strategic activities like supplier negotiations.
• Streamlined Sourcing: The improved workflows enabled the team to focus on cost-saving negotiations rather than administrative tasks.

Cost Savings

• A significant example of the cost impact was a 32% savings achieved through QAD SRM’s Auctions module, underscoring the financial benefits of streamlined processes.

Enhanced Collaboration

• Suppliers embraced the centralized communication system, improving their ability to collaborate with KION. This strengthened supplier relationships and ensured consistency across global operations.

Integrated Systems

• QAD SRM’s seamless integration with KION’s ERP system facilitated a smooth exchange of data between departments, suppliers and other stakeholders.

Looking Ahead: Continuous Improvement with QAD

KION is further enhancing its procurement capabilities by migrating to the QAD Cloud with QAD Professional Services. This upgrade will provide access to the latest features and improve flexibility in responding to future challenges. 

“One of the benefits of working with QAD Professional Services is communication and transparency on the status of the project. We have close exchanges with the team behind this exercise,” explained Bernhadt. “It’s critical for us to understand where we are because this is a big move for us. What we’re experiencing is a feeling of safety that everything that we did is not lost and everything that we will do is managed in a great way.”

In addition, through its partnership with QAD Customer Success, KION continues to refine its processes, ensuring that its procurement operations remain efficient and resilient. 

By leveraging QAD SRM, KION Group AG achieved a transformative shift in its procurement strategy. With reduced manual efforts, increased efficiency, and significant cost savings, KION is now better equipped to navigate the complexities of the modern supply chain.

Read the full KION Group AG customer success story to learn more, and check out their customer success video below.