Hilti Corporation cuts costs with Capgemini IBX procurement service

Global construction machinery manufacturer Hilti Corporation is attempting to cut costs by streamlining its procurement activities through a web-based platform from Capgemini.

Global construction machinery manufacturer Hilti Corporation is attempting to cut costs by streamlining its procurement activities through a web-based platform from Capgemini.

Hilti Corporation has signed a five-year deal and joins corporate giants such as Ericsson, Deutsche Poste, Lufthansa and Craft as global users of the IBX platform, which Capgemini acquired last year.

The IBX procurement service integrates with Hilti's SAP ERP system. The integrated IBX platform is related to the procurement of all products and services that do not go into its end products. The company started its migration to IBX in Germany, where over 3,000 employees have access to it.

Leif Bohlin, procurement services lead at Capgemini and former CEO at IBX, said over half a million individuals use the on-demand service.

The Hilti contract will cover its operations globally. "It will be similar in size to the service we run for Ericsson which is in 100 countries," said Leif Bohlin.

Global insurance company Ecclesiastical Insurance, which has about 800 staff in the UK, cut its procurement costs by £3m in a year following a £20,000 software investment in IBX licenses last year. Ecclesiastical Insurance made the savings by cutting procurement costs and getting better deals from using a wider supplier community.

Ecclesiastical Insurance head of procurement Peter Roberts told Computer weekly that, before the IBX eSourcing platform was implemented, there was no centralised purchasing system. Peter Roberts said everything was paper-based and each department would have its own purchasing processes.

Roberts said his first challenge was to raise the profile of the central procurement department to get other departments to start using the e-procurement system.

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