JAGGAER Streamlines Supplier Management for Rolls-Royce

MTU Friedrichshafen is the core business of Rolls-Royce Power Systems, a division of Rolls-Royce plc. The company’s headquarters are in Friedrichshafen, Germany and it employs over 11,000 people worldwide. The company is well-represented around the world with over 30 subsidiaries and more than 1,200 development, production, service, and sales locations in 130 countries.

Under the MTU brand, the company develops and produces large high-speed engines and propulsion systems for ships and heavy land, rail and defense vehicles, as well as drive systems for use in the oil and gas industry and in power generation. The company has procurement offices in nine locations around the world where 120 buyers are responsible for a purchasing volume of more than one billion euros. Approximately 45 commodities are distributed across these locations using a category manager concept.

The Challenge

The procurement department at MTU was searching for a way to quickly access data on suppliers and prices, which are spread across four SAP systems. Changing a single data entry necessitated the time-consuming task of replicating this update in the other systems. For MTU, it was crucial that the company implement a tool that would make updating the primary data in their digital purchasing platform easy and would automatically sync data updates to the other company SAP systems.

In order to ensure that materials were being purchased at the same prices in all of the company’s international locations, the solution would also have to make supplier and price data transparent and readily available for all of the company’s purchasing locations. As it looked to enable these features, MTU Friedrichshafen had a vision for its supplier management and procurement system: the manufacturer wanted ideally to have a 360° view of each supplier through a single portal. In addition to maintaining accurate and consistent supplier data, MTU also enabled different locations to purchase at the same negotiated prices worldwide while still allowing for flexibility in local price components. The company knew that the most effective way to achieve these goals and guarantee global transparency was to set up a central system that can be accessed from all of the company’s locations and SAP systems, so they looked to JAGGAER to make this vision a reality.

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