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Information Builders > Case Studies > Performance Management Improves Purchasing Operations at ThyssenKrupp
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Performance Management Improves Purchasing Operations at ThyssenKrupp

Technology Category
  • Analytics & Modeling - Real Time Analytics
  • Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries
  • Metals
Applicable Functions
  • Procurement
Use Cases
  • Inventory Management
  • Supply Chain Visibility
Services
  • Software Design & Engineering Services
  • System Integration
The Challenge
ThyssenKrupp, a large steel producer, needed to formalize procurement processes, define purchasing-related objectives across multiple operating units, and accurately measure progress towards strategic goals. The company wanted to standardize and optimize processes as well as create formal structures for purchasing-related reporting across the entire group to enhance the techniques and metrics already in place. The company aimed to provide individual units with some leeway and flexibility within an overall strategic framework. The challenge was to ensure adherence to standardized procedures across the individual units to ensure synergies and optimize the use of suppliers and other resources.
About The Customer
ThyssenKrupp is a manufacturer with approximately 188,000 employees in more than 80 countries. The company is one of the world's largest steel producers and is based in Germany. ThyssenKrupp was formed from the merger of Thyssen and Krupp in 2000. The company recently reorganized its departments into eight business units within two main divisions – Materials and Technologies – with corporate headquarters overseeing strategic management functions. The Materials division embarked on a crucial purchasing initiative, designed to strengthen related activities across the business on an ongoing basis.
The Solution
ThyssenKrupp implemented the WebFOCUS Performance Management Framework (PMF) to meet its purchasing reporting requirements. Strategic objectives and related performance indicators were defined and recorded, then summarized and made accessible via a Web-based scorecard. With the new purchasing reporting infrastructure in place, ThyssenKrupp’s business units can increase purchasing efficiencies, uncover consolidation opportunities, and better measure performance through improved transparency into related processes. The company used WebFOCUS to define strategic objectives and indicators that focused on core purchasing activities. Measuring achievement in those objectives is done at the touch of a button. After choosing WebFOCUS, ThyssenKrupp began outlining key performance indicators (KPIs) used in the purchasing reporting process to assess the productivity and effectiveness of critical activities. It deployed a forward-looking conceptual design for a company scorecard and value-based management environment.
Operational Impact
  • Greater visibility into purchasing operations.
  • Increased purchasing productivity and accountability across all the company’s entities.
  • Achieved economies of scale through consolidation and other cost-cutting measures.

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