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With D&B rationalization, SKF has optimized its database of suppliers. The transparency gained enables more efficient purchase strategies and cuts costs.
Global engineering company SKF is present in over 130 countries and purchases for more than 3 billion euro per year, from over 30 000 suppliers. The task of managing the purchasing process globally is given to Stephan Koerner and his team at SKF in Schweinfurt, Germany and in Gothenburg, Sweden.
“We also have a number of global commodity managers located all over the world,” explains Stephan Koerner, purchasing process manager at SKF.
SKF is running the procurement on around 40 system installations worldwide, with an internal global vendor coding structure.
“We used to spend a lot of effort on maintaining this structure. So we decided to, through D&B Data Rationalization, integrate D&B’s DUNS Family Tree and D&B’s World Base 1784 information in our existing Purchasing Data Warehouse.”
How come you picked D&B for this project?
“We already used D&B Global Reference Solution for economic information. This was a logical next step for SKF, and we’re very pleased with the efforts provided by D&B.”
The main advantages of the integration is that it allows SKF to consolidate and analyze their purchasing spend and supplier network and simplifies for SKF to develop their strategic purchasing activities.
“The solid grouping structure of the D&B solution is a core enabler to get transparency into our purchasing spend, and also enables external benchmarks, adds Stephan Koerner.”
He admits that there used to be a high number of duplicates in the SKF registers.
“Now we have a structured and much more effective overview of our global supplier network.”
Is this project with D&B profitable for SKF?
“Definitely. The transparency makes it much easier for us to identify strategic purchasing activities to leverage volumes and reduce the supplier base.”
He calls the fact that SKF is able to see the exact percentages of purchases in different dimensions a key for strengthening the global purchasing power of SKF.
Having complete answers to questions like When, What, From whom, From where and How did we purchase in terms of volume, quantities, counts and indexes gives SKF very useful insight for their strategic initiatives with the SKF suppliers.
“By now we can analyze around 85 percent of the global SKF purchasing spend in all categories, thanks to the D&B Rationalizing efforts,” says Stephan Koerner.
The Swedish engineering company SKF Group is aleading global supplier of bearings, seals, mechatronics,lubrication systems and services which include technicalsupport, maintenance and reliability services,engineering consulting and training. SKF was founded in 1907 and is today represented in more than 130 countries worldwide.
The company has more than 100 manufacturing sites and also salescompanies supported by about 15 000 distributorlocations. SKF also has a widely used e-business marketplace and a sophisticated global distribution system.In 2011, SKF had a turnover of almost 7 billion Euroand has today more than 40 000 employees. The mainoffice of SKF is located in Gothenburg, Sweden, and CEO is Tom Johnstone.