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Festool Digitalises its Supplier Management and Supply Chain with SAP Ariba and apsolut
Company
Festool
Branch
Tools
Products
Tools and accessories for timber construction, carpentry, painting and renovation work as well as paint preparation and finishing
Number of employees
3,300
Turnover
Approx. 930 million euros
Headquarters
Wendlingen am Neckar, Germany
Websitewww.festool.de
Efficiency, Transparency and Process Stability Thanks to SAP Business Network SCC and SAP Ariba
Festool, a leading manufacturer of professional power tools, has systematically modernised its supplier and purchasing processes. In the course of its S/4HANA transformation, individual IT solutions developed over many years were replaced – with the aim of standardising processes, increasing transparency and optimising cooperation with suppliers.
Festool was in a complex situation at the beginning of the project: fragmented systems, manual qualification processes and numerous different communication channels with suppliers made it difficult for the company to maintain control. To change this, Festool decided to implement SAP Ariba Supplier Lifecycle & Performance (SLP) and SAP Business Network Supply Chain Collaboration (SCC). Key factors in the company’s decision included the high level of integration with SAP S/4HANA and the scalability of the platforms. Festool selected apsolut as its partner for the implementation process on the basis of the consultancy’s proven SAP Ariba expertise, its experience with complex projects in an industrial setting and its ability to combine technical excellence with pragmatic implementation expertise. When directly comparing apsolut with other service providers, Felix Leister of Festool felt that apsolut stood out:
“I would give them nine out of ten points – apsolut is definitely among the top five per cent of all consulting services we’ve ever worked with.”
The project initially focused on mapping the vendor-managed inventory processes (VMI) in the SCC module. The information that suppliers receive about demand and warehouse capacity is now updated daily, ensuring that the supply chain is much more stable and secure. At the same time, SAP Ariba SLP established a digital qualification process within the company, allowing for structured supplier data and automatic transfers to the ERP system. To date, around 150 suppliers have been successfully qualified via SLP, and about 40 of those have also been integrated into SCC for operational cooperation.
A key challenge was the integration of processes for handling consignment stock – cleanly mapping the individual demand logics and display formats was a particular focus here. The team successfully tackled these challenges by adopting a forward-thinking project planning approach and coordinating very closely with apsolut. Supplier onboarding was also organised systematically: individual training courses ensured that the users on the supplier side are now able to work with the system efficiently. At the same time, an accompanying internal change management process was also established in order to familiarise users in Purchasing with the new processes in a targeted way. Ongoing support currently requires less than one hour per week.
The effects are clearly measurable: cooperation with suppliers is more structured, up-to-date information is available on a daily basis and processes run without media disruptions. In addition, the closer ties with suppliers have helped improve the company’s strategic risk management – thanks in particular to the expansion and targeted management of the supplier pool. Operational efficiency has increased, and the solution has also freed up more time for Purchasing to deal with strategic tasks.
Felix Leister, Global Process Owner in Purchasing, summarises: “In the past, information came by e-mail or telephone. Today, everything is in the system – reliable, structured and available at all times. And the cooperation with apsolut was a major factor in our success here: they have strong technical expertise, and our partnership was clearly structured and on an equal footing.”
Festool plans to continue driving the digitalisation of its purchasing processes – with the aim of mapping both operational and strategic procurement processes in an integrated platform. The company is now evaluating modules such as SAP Ariba Sourcing. Its current solution creates a reliable, future-proof foundation on which Festool can build and develop.
150
suppliers were onboarded in SLP, and 40 in SCC.
Vendor-managed inventory (VMI) is a logistics model in which the supplier takes responsibility for monitoring and replenishing the customer’s inventory.
Implemented tools
SAP Ariba Supplier Lifecycle and Performance
SAP Business Network Supply Chain Collaboration
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“Right from the start, apsolut supported us with the comprehensive experience and expertise they had acquired from their enormous number of past projects. They were able to respond quickly and precisely to our complex requirements and present us with ideal solutions. Thanks to their experience with Ariba, we were able to digitalise our purchasing processes and make them more efficient as a result.”
Alexander Köhler, Purchaser and Project Manager, MLP
“To be quite honest: I have experienced so many IT projects in the past where the ambitious original goals were eroded bit by bit. But this time, it was different because apsolut worked very systematically and always intervened promptly when something threatened to get out of hand,”
Thomas Henzler, Chief Information Officer, PILLER Blowers & Compressors
‘We’re on the right track to being able to take full advantage of the potential that this transformation offers, as apsolut not only gives us the expertise that we need, but also has an incredibly agile and committed approach. apsolut no longer feels like an external partner to me, but more like an internal department, with whom I hope we can continue to work well into the future.’
Dr. Bei Mortensen, IT Business Service Owner – SCM & Manufacturing, GEA Group
"Of course, we are immensely proud of how we implemented this complex transformation together. The always competent and more than punctual execution moved us to initiate a parallel project for partial process innovation in the ongoing project. Actually a no-go, but with apsolut no problem! With this positive experience, it was easy for us to initiate another project, which is currently being implemented. One thing remains to be said: Without the team around Bodo Hempelmann, this journey would definitely have been more difficult!”
Manuel Steffen, Project Officer Source-to-Pay, Evonik Industries
"A transformation program of this scale needs a strong internal team from Procurement and Internal IT, but of course also experienced and committed external partners. The most important aspect is that everyone then works together with passion and conviction towards the common goal. In addition to the strong know-how of the consulting implementation partner – in our case apsolut – a strong line of communication from the partner to the software supplier SAP is also necessary."
Martin Traxl, Head of Strategy & Digitalization, OMV
"Being able to design our purchasing processes flexibly, digitally and above all efficiently offers great added value. We will therefore continue to expand our system in the direction of SAP Ariba."
Armin Kaczmarek, Senior Vice President Corporate Purchasing, Vorwerk
“The cooperation with the international apsolut project team from Germany and India was very effective despite the tough schedule. Due to the high degree of standardisation and automation, we were already able to realise potential savings and, in particular reduce process costs.”
Markus Ortlieb, Director Global Procurement, ProMinent GmbH
„We were able to roll out Ariba very quickly, because we established a pragmatic and open culture of cooperation with the apsolut team from the very beginning, and we were prepared to systematically align ourselves with the standard“,
Sarah Eve Wiedemann-Geiß, who oversees purchasing and supplier management at Bausparkasse Schwäbisch Hall
„apsolut not only guided us through the project with utmost professionalism and a proactive approach – decisive was the fact that apsolut enabled us to operate the new tool independently and to control the next steps ourselves. In addition, thanks to apsolut, we have been able to establish the right network, including with the right contacts at SAP Austria. The project has been an overwhelming success and we have managed to foster an almost friend-to-friend relationship with the apsolut team."
Gerald Goldgruber, Strategic Manager for Process Management and SAP, Frutura
"apsolut has been supporting us in the ope-ration of our SRM system for 10 years. It does not matter whether we report a problem in the production system or want to discuss change requests. We are contacted by apsolut in a timely manner to resolve our concerns or discuss our requirements in detail. apsolut always provides the important piece of securi-ty in the background - if anything goes wrong, they always help quickly and straightforwardly."
Torsten Enseroth, SAP S/4HANA Solution Architect, Friedhelm Loh Group
“After the first Ariba roll-outs, we continued to work with apsolut to jointly develop our Ariba Suite. We usually work together at eye level, and I appreciate apsolut’s open and honest advice. I always have the feeling that the best solution for the customer is their guiding principle. This level of honesty is what led us to working together for so long.”
Małgorzata Pośpiech, SCM Process Manager, JOYNEXT
"As our experiences with apsolut were so positive across all national companies, we have already doubled the number of monthly support days twice. Thanks to apsolut, we now have the resources we need to implement rollouts in other national companies. At the moment, they are ongoing in Spain, Portugal, Italy, and France."
Sandra Mancino, Application Consultant, C&A
"apsolut pro-actively asked us questions from the outset, discussed our aims and created a new roadmap. This approach was the complete opposite of the original project and it worked fantastically,"
Patrick Tydex, Project Manager, Zentis
„Despite all the digitalisation and automation, we still work in a people business. During this project, we have grown into such a resilient, unified team that we’ve managed to meet all of our deadlines up to this point, even though some of them were quite ambitious. Ultimately, that also motivates everyone involved to do their part in driving the project forward!“
Simon Bohn, Global Solution Architect Procure to Pay, STIHL
"apsolut demonstrated a high degree of flexibility and commitment during the project. The structured working methods and the dedicated team enabled us to meet the urgently needed go-live deadlines."
Paul Trautmann, Manager Procurement Processes & Projects, Röhm GmbH
“We had many specific requirements and together with apsolut we found a solution for each one of them. We used to search for supplier information, now we do find it. We are really very satisfied!”
Tanja Sefrin, Project Manager, KUKA
“I would give them nine out of ten points – apsolut is definitely among the top five per cent of all consulting services we’ve ever worked with.”
Felix Leister, Global Process Owner – Source-to-Pay, Festool
“apsolut won us over with their keen problem-solving skills. They took a pragmatic, efficient approach that allowed them to overcome every challenge they faced”,
Simon Band, Group Manager Materials Management – Purchase Contracts, Gelsenwasser
„apsolut not only guided us through the project with the utmost professionalism and a proactive approach – the decisive factor was that apsolut enabled us to operate the new tool independently and to manage the next steps ourselves. apsolut’s employees quickly familiarised themselves with our system and processes, which made it easier for us to achieve the project goals within the given timeframe. I would also like to praise their flexibility in adapting to changes and their flexibility in implementation, with clear communication and excellent project management. We look forward to benefiting from this expertise more often.”
Zinah Matar, Digital Business Development Manager, Juffali Commercial Vehicles
“I was particularly impressed with the open and honest communication we had with apsolut during the project.”
Julia Führer, IT Inhouse Consultant Procurement, BIOTRONIK
"With apsolut, we have gained a partner who has implemented our requirements effectively and efficiently in the configuration of Ariba in a practical manner and in a breathtaking amount of time. The customer-oriented approach was one of the main reasons why we also chose apsolut for the implementation of SLP and Contract Management."
Frank Unfried, Director Digitalization Purchasing & Indirect Spend bei Pfleiderer
“We knew that this was apsolut’s first project for a health insurance company, but that didn’t matter. Because apsolut always listened to us, understood our requirements and finally delivered solutions. We could design different processes for direct and indirect purchasing. Together we work professionally in state-of-the-art mode.”
Michael Spiess, Chief Procurement Officer, Sanitas Krankenversicherung
‘With its flexible and transparent procedure, apsolut perfectly complemented our own limited personnel resources. Together, we were able to address topics like multi-line items or dependencies with other tools. It’s unbelievable how much knowledge and expertise we were able to gain,’
Regina Krüger-Wendel, Chief Procurement Officer, Atruvia
“The collaboration with apsolut was a complete success. Working together, we managed to lead our supply chain into the cloud and thus gain stability, such as in future sustainability,”
Michael Wölfl, Head of PPS, Alfred Ritter
"Although personal contact was very limited due to Corona, a strong team formed during the intensive project phase. The decision-making paths at BITZER and apsolut were always short so that issues could be dealt with promptly and the planned go-live date achieved. The home office was not an obstacle, but also gave us the necessary flexibility for a project of this size.
All team members have done a great job, I have rarely worked so well with a consulting firm!"
Steffen Bauer, Project Manager, BITZER
"It really helped to work with a partner who knows our organisation,”
Wiebke Stahmann, , eProcurement Expert and Project Manager, DMK Group
„We were looking for a specific solution that did not exist yet. We didn’t want to compromise. So we looked for the right partner to model a flexible tool so that we could configure the specific processes ourselves. We used our expertise and creativity to make Squando our global supplier management tool.“
Ketylin Morello, Purchasing Strategy and Market Intelligence & Functional Product Owner for Squando, Schaeffler
„During our conversation with apsolut, it quickly became clear that while we definitely did have potential for digitalisation in direct procurement, the potential in indirect procurement was much greater. That’s why we shifted our focus, and it was absolutely the right decision“,
Yvonne Kippschull, SAP-Prozess- & Application Consultant, wolfcraft
“We were impressed by the flexible service tailored to our needs and requirements, the combination of on-site and remote support, the quick response to changes, and the high quality of the apsolut employees involved!”
Annette Römer, Project Manager, McKesson Europe AG
"apsolut impressed us in our project, particularly because of the open and cooperative partnership. The project team gets on very well with each other. But we were also impressed by the solution-oriented approach and the fast and efficient enablement of our support staff!"
Annette Römer, Project Manager, McKesson Europe AG
“Technology undoubtedly opens up many new possibilities. But if you don’t convince people of the benefits of this technology, you won’t benefit from these opportunities. apsolut has played a major role in ensuring that people at Archroma recognize the advantages of the new solution and that the company benefits in the long term.”
Felipe Antunes Miranda, Global IT Category Manager and Project Manager, Archroma
"From the beginning of the project, we have made a remarkable change together with apsolut. The Döhler employees find their way through the easy user interface without any prior knowledge of SAP. As a result, our purchasing department is no longer an operational procurement office, but a team of in-house consultants."
Shibu Palakalodil, Projektleiter SAP Ariba-Implementierung
"apsolut led us in a very cooperative and super-competent manner throughout all phases of the project! Above all, the open collaboration between all project members kept motivation high throughout. The project team gets on very well with each other. We were also impressed by the solution-oriented approach and the ability of the entire project team to make quick decisions!"
Hubert Buchsteiner, Group Vice President Purchasing, ZKW Group
"When selecting a partner for our procurement transformation, a high level of technical know-how was of course also important to us. Here, apsolut was able to convince us with best practices from customers of a comparable size. The decisive factor in the end was the experience in change management! Only in this way were we able to introduce a fully-fledged procurement system that is also accepted by all employees."
Göktürk Simsekol, Digital Transformation Director, Flint Group
"The mix of virtual design discussions, system demonstrations and break-out sessions, supported by best-in-class tools that allowed us to annotate and track tasks and decisions during screen sharing, enabled us to work closely with apsolut even though distances of up to 12,000 kilometres had to be bridged. We were very pleased that both our projects could be successfully implemented with the help of apsolut."
Alina Aftene, Procurement Solutions Specialist, Delivery Hero
„Every time we came up against an unexpected challenge during the course of the project, apsolut immediately showed up possible options to resolve the issue. We always knew to what extent we had freedom of movement within the constraints of the cloud solution.”
Linna Krasnikov, SCC System Administrator, Kärcher
“For the new Ariba system, wewere able to onboard more than 1,400 users in three national subsidiaries with only little training effort. With regard to our Procurement processes, we have gained significant transparency and control.“
Jane Wanger, Global Procurement Systems & Support bei KSB
"Together with apsolut, we started as a pioneer in Central Procurement and we are very pleased that we were able to reap the first fruits of this pioneering work so early on.”
Stefan Ehrhardt, Head of SAP Governance Purchasing, MAHLE
“With a partner like apsolut, not even a pandemic is able to stop us! When the project started, we were a little skeptical, due to the fact that the project team was unable to meet face-to-face. But we are now delighted to say that all our concerns have proven to be unfounded.“
Chandrashekhar Saldur, AGM - Global Procurement & Projects, ETG Group
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