MAG Industrial Automation

Purchasing Controlling with SAP BI

Association of leading machine tool and plant manufacturers for the consumer goods industry.
High-performance partner for the aerospace industry, the automotive industry and in plant engineering for energy generation.
Around 1,600 employees work at 30 different locations worldwide, generating sales of €591 million.

The initial situation

  • An extensive volume of data in purchasing (114,000 suppliers alone) and the heterogeneous ERP system environment led to inadequate higher-level information
  • Suboptimal purchasing management processes and, in some cases, inappropriate price levels were the result

The solution

  • Introduction of a global BI system to be able to realize and measure the savings potentials
  • Data consolidation in the areas of purchasing/finance from 9 SAP and 4 other ERP systems with SAP-BI
  • Implementation of a web-based and integrated purchasing reporting system with dashboard and scorecard functions

The success

  • Cost reduction through volume bundling and global material group and supplier management amounting to €20 million in the first year alone
  • Transparency over master data(suppliers, material) to support cleansing and harmonization

entero AG contributed significantly to the development of an innovative overall concept for our global purchasing controlling and pushed the introduction with professional perseverance, flexibility, creativity and the will to succeed. [Matthias Probian, Director Finance Central Supply Chain Office, MAG IAS]