TGW Logistics, a prominent provider of automated intralogistics solutions, reported substantial process cost savings of around 2.4 million euros in 2023, attributed to the implementation of JAGGAER’s source-to-pay software suite. The company said it initially selected JAGGAER One in 2016 to address challenges emerging from its rapid growth and the complexities of managing a diverse, global procurement network. According to the announcement, the prior IT infrastructure was inadequate for handling the precision and flexibility required for its wide-ranging, heterogeneous product portfolio.
The software has since evolved from a central order optimisation tool into an integral part of various procurement functions at TGW Logistics. Modules in use include Supplier Relationship Management, Sourcing, Contract Management, and E-Procurement, notably for direct procurement orders. The firm highlighted the integration of JAGGAER One with its SAP/4 HANA ERP system as a key factor that facilitated seamless data exchange and boosted operational efficiency through automation of routine activities.
Lisa Steininger, SCM Process Manager at TGW Logistics, is quoted explaining that automation enabled the company to free up capacity for process improvements, optimise workflows, and reduce costs. In 2023, TGW reportedly processed over 55,000 supplier orders mostly triggered automatically from SAP and transmitted to JAGGAER. The no-touch workflow extends to order confirmations and supplier communications, reducing manual intervention and associated errors. More than 3,400 tenders were also managed through the JAGGAER platform, enhancing transparency and supplier comparison.
Furthermore, the company benefits from a consolidated overview of over 1,700 suppliers via JAGGAER’s supplier management tools, which support ongoing negotiations and simplify onboarding with automated reminders and questionnaires. TGW Logistics considers JAGGAER’s user-friendly interface a significant advantage. Future plans involve deeper integration of JAGGAER into procurement and supply chain processes, including expanding supplier management capabilities with enhanced risk management and sustainability criteria in tenders.
According to JAGGAER’s Vice President for Germany, Austria, and Switzerland, the partnership exemplifies how advanced procurement technologies can deliver critical savings amid rising operational costs.
External context confirms the trend of logistics and transportation companies adopting sophisticated procurement software to manage complex supplier ecosystems and achieve cost efficiencies. For instance, other industry players have also reported significant savings using JAGGAER’s solutions, particularly in advanced sourcing and transportation spend management, highlighting the increasing role of AI-powered tools in procurement optimisation.
However, some analysts caution that while automation offers clear benefits, achieving seamless integration across global procurement and ERP systems remains challenging for many firms, often requiring substantial initial investment and ongoing process adaptation. TGW Logistics’ reported success thus marks a noteworthy case where technology and strategy appear well-aligned to support scalable growth and operational resilience.
This example illustrates the increasing adoption of comprehensive source-to-pay platforms as a strategic asset in complex manufacturing and logistics sectors, where the digital transformation of procurement processes is becoming essential to competitiveness.
Source: Noah Wire Services
