{"id":12367,"date":"2025-01-16T10:24:48","date_gmt":"2025-01-16T18:24:48","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=12367"},"modified":"2025-01-16T11:31:53","modified_gmt":"2025-01-16T19:31:53","slug":"kion-group-ag-transforms-procurement-processes-with-qad-srm","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2025\/01\/kion-group-ag-transforms-procurement-processes-with-qad-srm","title":{"rendered":"KION Group AG Transforms Procurement Processes with QAD SRM"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;12368&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Running a business in today&#8217;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 <\/span><a target=\"_blank\" href=\"https:\/\/www.kiongroup.com\/en\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">KION Group AG<\/span><\/a><span style=\"font-weight: 400;\"> with a global footprint, necessitating strong relationships and clear communication with suppliers at every level to respond proactively to shifting market conditions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite its success, KION faced significant challenges in managing its extensive supplier network and procurement processes. \u201cFor the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2022\/10\/mitigate-supplier-risk-with-qad-srm\" rel=\"noopener\"><span style=\"font-weight: 400;\">mitigation of supply chain and business risks<\/span><\/a><span style=\"font-weight: 400;\">, we need closer integration and easy collaboration with our suppliers,\u201d said Jens Brethauer, VP of e-Procurement &amp; Digitalization at KION.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To achieve an optimal level of connectivity, KION turned to <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/supplier-management\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Supplier Relationship Management (SRM) <\/span><\/a><span style=\"font-weight: 400;\">to support the global manufacturer in cultivating strong relationships and maintaining clear communication with suppliers across all levels.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Overcoming Manual Processes and Disconnected Systems<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">KION\u2019s 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&#8217;s ability to create sourcing events quickly and maintain <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2023\/06\/defining-supplier-development\" rel=\"noopener\"><span style=\"font-weight: 400;\">seamless supplier relationships<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Key challenges included:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supplier Management Complexity:<\/b><span style=\"font-weight: 400;\"> Coordinating with suppliers across regions was cumbersome, slowing decision-making and response times.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Time-Consuming Sourcing Events:<\/b><span style=\"font-weight: 400;\"> The manual creation of Request for Quotes (RFQs) was labor-intensive, detracting from strategic procurement activities like negotiation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Performance and Capacity Tracking:<\/b><span style=\"font-weight: 400;\"> Evaluating supplier capacity and performance lacked the streamlined infrastructure to ensure consistency and effectiveness.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Global Standardization:<\/b><span style=\"font-weight: 400;\"> KION needed a unified, standardized process for global procurement while accommodating regional nuances.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u201cThe 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,\u201d added Brethauer.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Enhancing Procurement Operations and Supplier Collaboration with QAD SRM<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To address these challenges, KION implemented QAD SRM with a focus on its <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/supplier-data-management\" rel=\"noopener\"><span style=\"font-weight: 400;\">Supplier Data Management<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/sourcing\" rel=\"noopener\"><span style=\"font-weight: 400;\">Sourcing <\/span><\/a><span style=\"font-weight: 400;\">and <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/auctions\" rel=\"noopener\"><span style=\"font-weight: 400;\">Auctions <\/span><\/a><span style=\"font-weight: 400;\">modules. This marked a critical step in KION&#8217;s digital transformation journey.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The solution allowed KION to centralize procurement operations, standardize workflows globally, and improve supplier collaboration. \u201cWe 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,\u201d explained Gero Bernhardt, Director of Digital Procurement at KION.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specific improvements included:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unified Platform:<\/b><span style=\"font-weight: 400;\"> 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.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhanced User Experience:<\/b><span style=\"font-weight: 400;\"> The intuitive design of QAD SRM and its guided wizards simplified complex tasks, increasing user adoption rates among both KION employees and suppliers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Seamless Communication:<\/b><span style=\"font-weight: 400;\"> Real-time data exchange and integrated communication tools allowed for faster decision-making and streamlined workflows, enabling <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2023\/10\/what-you-need-to-know-about-supplier-management-and-srm-software\" rel=\"noopener\"><span style=\"font-weight: 400;\">enhanced collaboration<\/span><\/a><span style=\"font-weight: 400;\"> and proactive responses to market changes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flexibility and Customization:<\/b><span style=\"font-weight: 400;\"> QAD SRM offered tools like auctions, RFQ automation, and performance management, enabling KION to tailor processes to meet specific needs.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">QAD SRM Delivers Enhanced Efficiency, Savings and Collaboration for KION<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The implementation of QAD SRM revolutionized KION\u2019s procurement processes, delivering measurable results including efficiency gains, cost savings, enhancing collaboration and integrated systems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cQAD SRM changed our work life definitely because there&#8217;s now much more time left to negotiate better prices and save costs,\u201d added Brethauer.\u00a0<\/span><\/p>\n<p><b>Efficiency Gains<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Streamlined Sourcing: The improved workflows enabled the team to focus on cost-saving negotiations rather than administrative tasks.<\/span><\/li>\n<\/ul>\n<p><b>Cost Savings<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A significant example of the cost impact was a 32% savings achieved through <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/auctions\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD SRM&#8217;s Auctions module<\/span><\/a><span style=\"font-weight: 400;\">, underscoring the financial benefits of streamlined processes.<\/span><\/li>\n<\/ul>\n<p><b>Enhanced Collaboration<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Suppliers embraced the centralized communication system, improving their ability to collaborate with KION. This strengthened supplier relationships and ensured consistency across global operations.<\/span><\/li>\n<\/ul>\n<p><b>Integrated Systems<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">QAD SRM\u2019s seamless integration with KION\u2019s ERP system facilitated a smooth exchange of data between departments, suppliers and other stakeholders.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Looking Ahead: Continuous Improvement with QAD<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">KION is further enhancing its procurement capabilities by migrating to the QAD Cloud with <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/services\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Professional Services<\/span><\/a><span style=\"font-weight: 400;\">. This upgrade will provide access to the latest features and improve flexibility in responding to future challenges.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cOne 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,\u201d explained Bernhadt. \u201cIt\u2019s critical for us to understand where we are because this is a big move for us. What we\u2019re 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.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, through its partnership with QAD Customer Success, KION continues to refine its processes, ensuring that its <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2022\/04\/people-in-manufacturing-procurement\" rel=\"noopener\"><span style=\"font-weight: 400;\">procurement<\/span><\/a><span style=\"font-weight: 400;\"> operations remain efficient and resilient.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/connected-supply-chain\" rel=\"noopener\"><span style=\"font-weight: 400;\">modern supply chain<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>Read the full <\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/case-studies\/kion-group-ag\" rel=\"noopener\"><b>KION Group AG<\/b><\/a><b> customer success story to learn more, and check out their customer success video below.<\/b>[\/vc_column_text][vc_video link=&#8221;https:\/\/qad.wistia.com\/medias\/3tkl7c3q4a&#8221;][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;12368&#8243; img_size=&#8221;full&#8221;][vc_column_text]Running a business in today&#8217;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 [&hellip;]<\/p>\n","protected":false},"author":122,"featured_media":12368,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[198,182],"tags":[3092,411,2716,1943,1332,1696,92],"class_list":["post-12367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-success","category-featured","tag-digital-procurement","tag-digital-transformation","tag-process-standardization","tag-qad-srm","tag-supplier-management","tag-supplier-relationship-management","tag-supply-chain"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>KION Group AG Transforms Procurement 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