The market leader in turnkey solutions for machine tools and laser technology takes stock but confirms digital transformation journey is far from over
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--"Digitizing procurement is not a sprint, but a long-distance race," says Michael D'Alessandro, Head of Purchasing Excellence at TRUMPF. The market leader in turnkey solutions for machine tools and laser technology has now been working with the JAGGAER procurement platform for over 15 years.
Big vision, implemented step by step
With the introduction of a procurement platform, TRUMPF aimed to manage all purchasing activities more efficiently, both operationally and strategically. The company also wanted to intensify collaboration with its suppliers. Describing the current status, Michael D'Alessandro explains: "For companies like ours, active internationally in the manufacturing sector, procurement plays an absolutely strategic role. TRUMPF now works with more than 5,000 suppliers worldwide and handles around 600,000 transactions a year in addition to all supplier management tasks. This generates an enormous volume of procurement data, which we are increasingly leveraging to create value with the help of JAGGAER."
TRUMPF approached the digitalization of its procurement in phases. Initially, the JAGGAER platform was used for supplier evaluations and complaints management. Further operational areas soon followed, including the entire order-to-pay process as well as sourcing for drawing-based manufacturing. Today, the necessary drawings and bills of materials are provided to suppliers automatically, thanks to an interface with the SAP system. This enables the procurement teams to contact more potential and existing suppliers in less time, increasing competition and cutting costs.
Today, TRUMPF handles around 80 percent of its global orders via JAGGAER. In addition to sending requests to suppliers, the source-to-pay platform also allows TRUMPF to track their responses. Two thirds of incoming digital order confirmations are processed automatically end-to-end. Advance Shipping Notices provide additional process reliability in supply chain collaboration. They indicate when the ordered goods are ready for dispatch at the supplier. Logistics, goods receipt, and production can therefore rely on deliveries arriving at the agreed time and can plan staffing accordingly. "With JAGGAER's Purchase Order Management and Invoicing, we have gained enormous transparency and speed across the entire process," confirms Michael D'Alessandro.
Suppliers and manufacturer deepen cooperation
The number of suppliers working with the procurement platform has steadily grown over the years. However, purchasing expert D'Alessandro admits: “Reaching today's high level of more than 5,000 connected suppliers took five to six years. That requires stamina. It makes no sense to try to force a system on suppliers." Patience and effort have paid off: "With JAGGAER, we have made our supplier relationships more transparent and achieved significant efficiency gains across regions and functions–from raw material purchasing through to logistics and transport. Overall, we have generated savings of 9.4 million euros," says D'Alessandro.
Next goal: Simplify compliance and strengthen ESG
Over the coming years, TRUMPF plans to use JAGGAER even more strategically in supplier relationship management. The goal is to efficiently deepen long-term relationships with suppliers while ensuring compliance. This applies to industry standards as well as regulatory requirements such as CBAM or EUDR as well as any future frameworks. TRUMPF is also relying on the procurement platform to achieve its own environmental, social, and governance (ESG) objectives. JAGGAER already provides the flexibility required to do this.
About TRUMPF
TRUMPF is a high-tech company offering manufacturing solutions in the fields of machine tools and laser technology. It drives digital connectivity in manufacturing through consulting, platform products and software. TRUMPF is one of the technology and market leaders in highly versatile machine tools for sheet metal processing and in the field of industrial lasers. In 2024/25, TRUMPF employed about 18,000 people and generated sales of 4.3 billion euros. With about 90 companies, the TRUMPF Group is represented in nearly every European country as well as in North America, South America and Asia. The company has production facilities in Germany, France, the United Kingdom, Italy, Austria, Switzerland, Poland, the Czech Republic, the United States, Mexico and China.
Find out more about TRUMPF at www.trumpf.com
About JAGGAER:.
JAGGAER is a global leader in enterprise procurement and supplier collaboration, and the catalyst for enhancing human decision-making to accelerate business outcomes. We help organizations to manage and automate complex processes while enabling their highly resilient, accountable, and integrated supplier base. Backed by 30 years of expertise, our proven AI-powered industry-specific solutions, services, and partnerships form JAGGAER One, serving direct and indirect, upstream, and downstream, in settings demanding an intelligent and comprehensive source-to-pay solution. Our 1,200 global employees are obsessed with helping customers create value, transform their businesses, and accelerate their journey to Autonomous Commerce. www.jaggaer.com
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Email: pr@jaggaer.com
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