KION Group AG

About KION Group AG

Transforming procurement: how Kion leveraged QAD SRM for global efficiency

‍

KION Group AG, headquartered in Frankfurt, Germany, is one of the largest manufacturers of material handling equipment and supply chain solutions in the world. It was established in 2006 amid Linde AG’s restructuring and has evolved into a multi-brand business offering not only industrial trucks, forklifts and warehouse equipment, but also intralogistics, warehouse automation equipment and other supply chain solutions. KION’s brands include Linde Material Handling, STILL, Dematic, Baoli, Fenwick and OM.

‍

The company has warehouses, production facilities and distribution centers in more than 100 countries and with more than 1.8 million units deployed worldwide, KION’s products have become a crucial factor for modern supply chains. It is the largest manufacturer for industrial forklift trucks in the EMEA region and is one of the world’s leading providers of warehouse automation solutions.

The Challenge

the challenges of today's world with supply chain disruption and also geopolitical threats,” explained Gero Bernhardt, Director of Digital Procurement at KION.

‍

“For the mitigation of supply chain and business risks, we need closer integration and easy collaboration with our suppliers,” added Jens Brethauer, VP of e-Procurement & Digitalization at KION.

‍

KION, like many manufacturers, faced challenges managing its robust supplier network. The team relied on email and phone calls to communicate with suppliers but the approach became insufficient as KION’s operations grew in scope and complexity. The process was labor intensive, making it difficult for stakeholders to share information and collaborate in real time, resulting in inefficiencies.

‍

Reliance on manual processes also made it difficult for KION to create sourcing events quickly and efficiently. KION wanted its buyers to focus more on negotiating with suppliers and less on administrative tasks but they needed a solution that could streamline and automate the sourcing process for direct materials.

‍

Managing supplier capacities and performance was another significant challenge. KION needed a system that could handle supplier interaction processes for capacity evaluation and performance rating and classification. The ideal solution would make it easy for stakeholders and business partners to collaborate on performance-related issues, ensure a high level of deliveries and enable a rapid response to potential problems.

‍

“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,” continued Brethauer.**

‍

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

The Solution

“We are closely aligned in our intention to strive for success together with QAD Customer Success, which is actually a benefit we’re missing from some other solution providers,” said Brethauer. “Our relationship with QAD Customer Success is direct and open-minded.”

‍

KION is also in the process of migrating to the QAD Cloud with the support of QAD Professional Services. The company chose to upgrade in order to access the latest features and further improve the flexibility and responsiveness of its procurement processes.

The Benefits

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.”

‍

“We have built a very close business relationship with QAD. Our goal is to get the best solution from the best provider, not waiting for each upgrade every time and then testing the release upgrades,” concluded Prenzel.**

‍

“Suppliers want to do business with us so, for them, it is a good way to ensure that they are part of our world. One of the most appealing features for a supplier is really having a central way to communicate.”