JAGGAER.com

S U C C E S S S TO R Y

C O N S U M E R G O O D S I S C M , V M I , D I S PATC H N OT I F I C AT I O N

P O M , S U P P L I E R R E L AT I O N S H I P M A N AG E M E N T

Individual Solution Solution for Highly Complex Logistics Requirements

PROFILE

About Grohe: As part of the GROHE group, which includes

Grohe AG, Hemer; Joyou AG, Hamburg, as well as

additional foreign subsidiaries,  Grohe is the largest provider

of plumbing fixtures in Europe, and a leading manufacturer

worldwide. As a global brand for plumbing and heating

products and systems, GROHE relies on the brand’s values

of quality, technology design ad sustainability in order to

provide a “pure enjoyment of water.” The Grohe group is

based in Hemer, and their corporate center is in Dusseldorf.

The company under the leadership of the GROHE group

S.à r.l, Luxembourg, employs 10,000 workers worldwide.

The GROHE group has nine manufacturing locations, six of

which are in international locations. ww.grohe.com

The high quality fittings from Grohe are seamless and appear

to be made from one piece, but before becoming a finished

product all of the individual parts and materials must first go

through many steps in one of Grohe’s six factories. More than

50% of the company’s products are manufactured at the three

German plants, but purchasing is global, and the clients are also

from all over the world. This leaves the company facing quite a

difficult challenge: Parts and materials often have long transport

times, but the items must be centrally available so that Grohe

can quickly equip each plant on site to respond to any order,

regardless of how large it might be.

THE CHALLENGE

A long journey, fast access; it may sound like a contradiction, but

Grohe has solved the problem with Inbound Hubs. This refers

Winner of the

Vision Excellence Awards 2014

JOIN THE CONVERSATIONon our blog at www.jaggaer.com/blog

sales@jaggaer.com

+1.919.659.2600

USA

+43.1.80.490.80

dach_sales@jaggaer.com

EUROPE

to storage areas near the

company’s plant locations

that serve as logistical

hubs which are accessed

and filled by suppliers. As

soon as a demand for a

material at Grohe has been

established, retrieval of

the necessary materials

from the hubs is initiated

for multiple production

commissions. This provides

Grohe with the necessary

assurance that they can

respond quickly to orders

on short notice, and it also

relieves their own storage

facilities. This principle

encompasses many complex

procedures. Suppliers must

be included directly in the

planning process by using a

forecasting system to view

notifications about upcoming

and planned productions,

and to then plan their

deliveries at proper and

timely intervals. This is why

Grohe began searching an IT

solution that could be used

globally, was user-friendly,

reduced errors, and covered

purchasing and logistics

processes.

The Solution

Grohe started working with

JAGGAER in 2012. The

previous IT system was not

flexible enough to grow

along with Grohe’s visions.

JAGGAER’s logical and

uniform portal solution also

offered modules that could

be useful for Grohe’s supplier

relationship management in

the future. The introduction

of a new platform for VMI

(Vendor Managed Inventory),

which would help keep

suppliers organize their own

deliveries based on the

company’s current inventory

and concrete figures, was the

most convincing factor of all.

This eliminated the ordering

process at Grohe completely,

and helped suppliers

optimize their own processes

as well.

Optimized Logistics

Processes

Purchase volumes and

the number of suppliers

under this management are

considerable. In total, the

company conducts storage

combinations for 2,000

items in VMI, and for 20,000

more components that are

provided by 600 suppliers.

Today, 170,000 purchase

orders are conducted via

JAGGAER each year. The

numbers indicate how

complex the requirements

are for the IT solution.

Grohe outlined exactly what

the portal must be able to

achieve, and very specific

ideas about the forecasting

system and the VMI. All of

the processing routines

were newly developed in

order to precisely address

the tiniest details, processes,

and demands in the solution.

Now, 80 % of the spend

transactions and purchase

orders are conducted using

JAGGAER.

Dialog Perfects Processes

Thanks to JAGGAER’s

individual VMI and Forecast

solutions, Grohe’s logistics

processes are now

much more efficient and

transparent. The stock

inventory is displayed using

a graph, making it easy

to see the demand for

certain items and materials.

Displaying the minimum and

maximum stock volumes

ensures a greater degree of

transparency over planned

efficiency in production

and distribution at their

manufacturing locations.

The supplier then informs

the manufacturer when they

can expect which quantities.

This also allows factories

to accommodate partial

deliveries with multiple

delivery dates and quantities.

This ensures that there is

no idle time in between.

Both business partners take

on their highest possible

workload. Grohe’s suppliers

GOALS REACHED WITH JAGGAER

• Elimination of order and delivery scheduling processes

at Grohe

• Effective integration of suppliers into production and

purchasing processes

• Suppliers respond quickly to changing demands

• Optimize stock inventory list and reduce costs

• Reduced prices due to supplier’s optimal production and

transportation planning

• Comprehensive display of all VMI data (e.g. minimum and

maximum stock)

• Real-time overview of orders and order confirmations

• Transparency and consistency from production to

delivery

manufacturing for suppliers.

Purchase orders and order

confirmations are displayed

in real-time, and are saved

in the SAP system without

additional manual input from

Grohe. Suppliers can react

quickly and can make more

precise deliveries, and Grohe

achieves a higher level of

can now view the updated

status of each project, from

the submission of a client’s

order, to production, the

division of the item lists, and

procurement so that they

can prepare accordingly.

Grohe and their business

partners achieve savings in

POM, production, storage,

commissioning, and transport.