JAGGAER: Empowering Millions in Savings for TGW Logistics
TGW Logistics, renowned for its advancements in automated intralogistics, embarked on a transformative journey in 2016 by integrating JAGGAER into its operations to enhance procurement efficiency.
This strategic alliance aimed to streamline their source-to-pay activities and elevate supplier relationship management, benefiting their sourcing, contract management and e-procurement processes.
The JAGGAER platform serves as an essential tool for companies aiming to manage and automate challenging processes, ensuring more efficient and resilient operations within the supply chain.
Operational efficiency
Facing the challenges of a rapidly expanding market in 2016, TGW Logistics realised their existing procurement infrastructure could not keep pace with the demands of their product range.
To counteract these inefficiencies, JAGGAER One was introduced. Known globally for enterprise procurement and supplier collaboration, JAGGAER offers a platform where companies report a 40% productivity increase among employees.
Moreover, businesses utilizing JAGGAER experience an up to 80% reduction in costs and an 85% decrease in invoice processing time, highlighting the direct impact on operational fluency and streamlined approaches.
With JAGGAER’s advanced supplier management systems, TGW Logistics has gained a comprehensive overview of over 1,700 connected suppliers. This visibility translates into full supply chain transparency and traceability, granting purchasing teams immediate access to crucial data and supplier-specific documents.
"With JAGGAER, we were able to automate routine activities and thus gain more time for process improvements," explains Lisa Steininger, SCM Process Manager at TGW Logistics.
"This not only led to optimised workflows, but also to significant cost savings."
The seamless data integration between SAP/4 HANA ERP and JAGGAER has propelled operational efficiency at TGW Logistics to new heights. By minimising manual interventions, the risks of human error are substantially reduced, ensuring smoother and more precise operations. This collaborative effort has led to an impressive saving of €2.4m (US$2.8m) in annual process costs for the company.
Growth opportunities
Implementing JAGGAER proved instrumental for the rapid expansion of TGW Logistics' supply chain.
In 2024 alone, more than 55,000 supplier orders were seamlessly managed, beginning in SAP before transitioning to JAGGAER for an automated flow. This integration underscores JAGGAER's efficiency in balancing supply and demand dynamics.
Furthermore, JAGGAER simplifies the onboarding process for new suppliers with user-friendly setups, ensuring productive collaborations.
In 2024, JAGGAER facilitated the processing of over 3,400 tenders, initially created in SAP before direct material extensions were managed through JAGGAER.
Without such a robust platform, the scale and speed of processing these projects would be severely limited.
"Companies today face rising costs in all areas, which makes the identification and utilisation of potential savings critical," adds Jochen Krüger, Vice President Germany, Austria & Switzerland at JAGGAER.
"What TGW Logistics has achieved with our JAGGAER solutions is an ideal example of what is possible with the right purchasing tools. We are delighted to be able to support the company on this journey and look forward to the next steps."
Looking ahead, TGW Logistics is poised to enhance its capabilities further with JAGGAER's Action module, aiming to strengthen supplier management and prioritise risk management.
Given the positive outcomes seen thus far, JAGGAER's future contributions are set to help TGW Logistics achieve its procurement objectives.
