CONVOTHERM (A WELBILT DEUTSCHLAND GMBH BRAND)

The Challenge:

MANUAL RFQS, FRAGMENTED SUPPLIER DATA AND LIMITED VISIBILITY CREATED INEFFICIENCIES, COMPLIANCE RISKS AND MISSED SAVINGS OPPORTUNITIES

Convotherm’s commitment to quality is second to none, but manual processes, limited data on supplier risk and increasing cost pressures made it difficult for the company to cultivate the large, qualified supplier base needed to remain resilient in today’s volatile environment.

“We have a lot of supply chain challenges because the work is getting more and more labor intensive,” said Stefan Sadler, Sourcing Leader at Convotherm.

Time-consuming, manual sourcing processes were prone to human error. Even routine activities such as issuing RFQs relied on Excel sheets, ad-hoc communication and manual comparisons, which limited the number of suppliers considered in each bid.

“Because this is so much work, you only send inquiries to a small number of your suppliers,” added Sadler. “There’s also a big risk of human error — you may forget to ask something or don’t get all of the answers. The big impact is that you don't know your supplier.”

This constrained approach often prevented Convotherm from selecting the optimal vendor: “The other problem is that we didn’t always have the right supplier with the right price for the product,” said Steven Greiner, Sourcing Buyer at Convotherm. “We were focused on three or five suppliers when the best might have been the 10th or 11th.”

Supplier engagement was further complicated by Convotherm’s diverse bill of materials, including stainless steel, screws, electronic modules and software components: each with unique supplier requirements and performance standards.

Additionally, supplier qualification was time-intensive and inconsistent. Without access to third-party risk data or a centralized system, the team had limited visibility into suppliers’ financial health, certifications and regulatory compliance.

“The biggest issue with a large supply base is collecting qualification data,” explained Greiner. “The risk is making the wrong decision.”

Global disruption, from the COVID-19 pandemic to geopolitical instability, only heightened the urgency of having reliable, transparent supplier relationships. Regulations such as the German Supply Chain Act further elevated the need for supplier audits and standardized documentation.

The Solution:

CONVOTHERM DIGITIZED SUPPLIER ONBOARDING AND RFQS WITH QAD SRM TO STREAMLINE PROCESSES AND CENTRALIZE SUPPLIER COLLABORATION

Convotherm selected QAD SRM to digitize and standardize sourcing, onboarding and supplier collaboration. Familiarity with QAD ERP, local support and the flexibility of the SRM platform to fit Convotherm’s existing processes made it the natural choice.

“Since we already use QAD as our ERP system and have good local support, this was the most obvious step,” said Greiner. “What really convinced us was how well QAD SRM could adapt to our specific processes and needs.”

The implementation focused on the Supplier Data Management, Sourcing and Collaboration processes and followed a phased approach of modernizing one process at a time and allowing suppliers to adjust to the system without disruption.

“We tackled and changed one topic after another,” said Sadler. “In no time, the supplier registration was set up, and we could start onboarding. After giving suppliers some time, the first RFQs started.”

The team immediately saw value in two critical areas:

• Supplier Registration: Fully automated onboarding boosts efficiency and ensures every supplier completes required documentation and tasks uniformly.

• RFQ Management: Buyers now issue RFQs to dozens of suppliers simultaneously, review results in one interface and avoid manual comparisons.

“We wanted to have a pool where we could gather all of our supplier information and find it in a very quick time period. That’s the reason we chose QAD SRM,” Greiner noted.

QAD SRM also provided the transparency needed for compliance with ISO and regulatory requirements. All supplier interactions are now centrally recorded, enabling complete traceability and audit readiness.

“We now have everything in one place and the same conditions for every supplier,” said Sadler. “This helps us a lot with ISO and customer audits.”

While onboarding naturally came with some supplier learning curves, the platform’s simplicity and self-service features quickly won users over.

“There is now one place for everything: agreements, communication, RFQs,” said Greiner. “That level of traceability improves trust.”

Convotherm’s collaboration with QAD Customer Success played a key role in optimizing the rollout and delivering continuous improvement: “We are regularly updated on the current status and informed about future adjustments,” shared Sadler.

“We present an issue, talk through it, and by the next meeting, we usually have a solution implemented,” said Greiner, reflecting on the value brought by the QAD partner.

The Benefits:

QAD SRM ENABLES CONVOTHERM TO REDUCE RFQ PROCESSING TIME BY 90%, IMPROVE COMPLIANCE AND ACHIEVE 3.2X ROI

90% Time Reduction in RFQs

Before QAD SRM, an average RFQ cycle took an hour from start to evaluation. Today, the process takes just five minutes, allowing buyers to spend less time on administrative tasks and more time sourcing strategically.

“Previously, the tender process took about one hour. In SRM, this process was reduced to a good five minutes,” said Sadler. “And the quality of prices and suppliers also increased.”

3.2x Return on Investment

Convotherm achieved more than triple the return on its investment within the first year. These results were driven by increased sourcing efficiency and broader supplier participation.

“We usually only had five suppliers in manual requests. Now in SRM, requests go out to up to 50 suppliers,” said Greiner. “Due to time savings, we also request significantly more items.”

About one-third of the value came from sourcing new suppliers that previously wouldn’t have been included in RFQs due to time or data limitations.

Improved Transparency and Compliance

Having one centralized system for supplier qualification and communication allows Convotherm to ensure standard processes, automate reminders and track certifications, which supports ISO readiness and incoming supply chain legislation.

“The biggest improvement is the fact that there is a central place for everything,” said Greiner. “It can be found there: agreements, requests, communication.”

QAD SRM is also enabling Convotherm to prepare for future compliance needs, like the German Supply Chain Act, even before they officially apply.

“We can quickly adapt the processes, and the system takes care of tracking various documents,” added Greiner.

Scalable Platform for Expansion

Following the success in sourcing, Convotherm is expanding SRM use across departments. The scheduling team is integrating delivery reminders, and the quality department is preparing complaint handling — both of which will feed into supplier evaluations.

“We’re gradually incorporating more processes into SRM,” said Sadler. “We’re building it up department by department.”

Convotherm’s implementation of QAD SRM has transformed supplier management from a manual bottleneck into a digital, strategic function. With a centralized platform, automated RFQs, and streamlined supplier data, Convotherm has gained efficiency, transparency and resilience, all while positioning itself for long-term growth and compliance.

“Definitely implement QAD SRM,” advised Greiner. “The savings from RFQs and the process improvements bring you one, if not two or three, steps forward.”