In our recent webinar, we had the privilege of delving into the world of supplier collaboration with Mr. Marko Turunen, Head of Strategic Purchasing at Viessmann Refrigeration Solutions. The insights he shared were truly eye-opening, as he discussed the remarkable transformation in Viessmann’s approach to supplier collaboration and the pivotal role Jakamo played in this journey.
Check out the recording of the webinar.
Challenges to be solved
Marko Turunen shed light on the challenges that plagued Viessmann when he assumed the role of Head of Strategic Purchasing. One of the significant challenges was the lack of clarity regarding what suppliers were delivering. Orders were placed, but confirmation information had to be entered manually into the ERP, resulting in a multitude of problems. Production and finance were often in the dark, leading to disruptions and frustrations because they couldn’t be confident had we received any confirmation from the suppliers.
Communication with suppliers was also far from ideal, relying on not transparent and cumbersome email exchanges. Purchasers found themselves in a constant firefighting mode, having to make angry calls to suppliers to secure orders. It was a situation that needed urgent resolution.
Choosing Jakamo as the Solution
Viessmann’s journey toward transformation started and at the same time, they came across Jakamo. “Unlike traditional solutions such as EDI connections and ERP portals, Jakamo offered a comprehensive approach to supplier collaboration. It provided a supplier network and went beyond transaction management, making it a clear choice for Viessmann.”
The decision was made to automate the purchase order/order confirmation flow first and then expand the use of Jakamo to cover supplier quality, supplier metrics, RFQ handling, and even on order desk functions. “This was really something else. It was allowing us to develop the activities and communication further.“
The Smooth Implementation
Marko highlighted: “From my perspective, implementing Jakamo was not an IT project, but rather a typical process development.” Within two months of making the decision and signing a contract with Jakamo, Viessmann went live with the platform, swiftly moving into a new era of supplier collaboration.
Motivating Suppliers to Join
Viessmann’s approach to onboarding suppliers was systematic. They analyzed their supplier base and decided to roll out Jakamo to those responsible for 80 % of the purchasing volume, approximately 20 % of their active suppliers. This quick win encouraged fast adoption. Today, the suppliers who initially hesitated to join Jakamo wouldn’t revert to their old email-based routines. “Some of the suppliers who were using Jakamo already said to us finally you are taking this step“.
The Transformation in Supplier Collaboration
The impact of Jakamo on supplier collaboration was nothing short of remarkable. It enabled Viessmann’s strategic purchasing team to concentrate on category management, pricing development, logistics planning, and strategic development initiatives. They no longer had to be involved in operative purchasing, and the days of firefighting were behind them.
Communication became transparent, and the whole procurement department knew exactly what was happening and when. “The collaboration with the suppliers has completely changed, nowadays Jakamo is our natural way to handle our collaboration towards the suppliers just like Office tools are as a standard.“
Viessmann’s commitment to transformation paid off with tangible results. Their on-time delivery (OTD) surged by 10 percentage points, a significant achievement, particularly because of their very customer-oriented engineering-to-order (ETO) delivery strategy.
They also managed to save a substantial amount of money while enhancing quality. Decreased cost of poor quality had a direct positive impact on their end customers’ satisfaction.
“Viessmann’s partnership with Jakamo was one crucial part which helped us to a complete turnaround in supplier collaboration, moving from a firefighting mode to a streamlined, efficient, and transparent process.” The results speak for themselves – increased on-time delivery, cost savings, improved quality, and higher customer satisfaction.
This case study encourages all manufacturing companies to establish a framework for supplier collaboration, implement innovative solutions, and take actions toward effective, strategic, and sustainable supplier collaboration.
Want to see the whole interview? Check out the recording of the webinar.
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