Strategic Digital Procurement Transformation at ebm-papst
ebm-papst has selected the source-to-pay and supplier collaboration platform JAGGAER One to modernize and standardize its global procurement operations. As the world’s leading manufacturer of fans and motors, the company is pursuing a comprehensive strategy to optimize supply chain performance, enhance supplier collaboration, and streamline product group management while strengthening its e-procurement capabilities across all regions. The phased implementation of the software solution will take place across production facilities in Europe, the United States, and China, ensuring a structured and controlled rollout that supports both direct and indirect purchasing activities. By deploying JAGGAER’s advanced procurement technology, the company aims to reduce material costs, lower overall process expenditures, and significantly improve operational efficiency throughout its global network.
Strengthening Forecasting and Purchase Order Management
In its initial phase, JAGGAER One will focus on enhancing forecasting accuracy and purchase order management processes. Advanced forecasting capabilities will provide improved visibility into demand patterns and supplier capacity, enabling the organization to plan more effectively and mitigate potential supply disruptions. Regular capacity queries integrated within the platform will contribute to stable production planning, helping to avoid bottlenecks while unlocking cost-saving opportunities. By leveraging data-driven insights, ebm-papst seeks to create a more predictable procurement environment, ensuring materials are available when needed without excessive stockpiling.
Advancing Vendor-Managed Inventory and Collaborative Planning
A central element of the new procurement strategy involves deeper supplier integration through vendor-managed inventory (VMI) and collaborative forecasting processes. Suppliers will gain access to transparent, real-time data on inventory levels and consumption trends, empowering them to proactively manage replenishment activities. This shift toward collaborative inventory control allows suppliers to monitor stock and consumption directly while ensuring seamless replenishment based on accurate demand signals. Through VMI, ebm-papst expects to reduce safety stock levels, optimize warehouse utilization, and enhance responsiveness across its supply chain ecosystem.
Driving Supply Chain Resilience and Cost Efficiency
According to Alexander Käss, Director of Supply Chain Management at ebm-papst, the primary objective of implementing JAGGAER One is to strengthen supply chain resilience and eliminate production downtime. By improving forecasting accuracy and supplier collaboration, the company aims to safeguard manufacturing continuity while reducing material inventories and associated storage costs. Lower inventory levels not only decrease warehousing expenses but also release working capital that can be redirected toward innovation and strategic initiatives. This balanced approach ensures operational stability while maintaining financial discipline in procurement operations.
Streamlining Sourcing and RFQ Management
Beyond forecasting and inventory optimization, the platform will significantly simplify the sourcing process for direct materials. Buyers will be able to create requests for quotation (RFQs) using dynamic templates and data libraries that integrate seamlessly with material master data from SAP systems. Flexible cost breakdown structures enable suppliers to detail pricing components such as material, manufacturing, and logistics expenses, facilitating transparent and precise quote comparisons. This structured evaluation process allows procurement teams to assess bids comprehensively, considering not only cost factors but also risk exposure and sustainability metrics. Once a sourcing event concludes, all negotiated terms and conditions are automatically updated within SAP, ensuring system-wide consistency and eliminating manual data entry.
Enhancing Data Quality with Advanced Analytics
Prior to launching the procurement transformation, ebm-papst prioritized improving the quality of its master data to ensure optimal system performance. The company implemented Data Quality Navigator (DQN) from BearingPoint to identify and eliminate duplicates, inconsistencies, and errors across datasets. Powered by artificial intelligence, DQN cleanses and harmonizes data, establishing a reliable foundation for automation and analytics within JAGGAER One. High-quality data is essential for accurate forecasting, intelligent automation, and effective supplier communication, particularly in a global organization operating multiple SAP systems.
Leveraging AI to Empower Procurement Teams
Bob O’Leary, SVP Europe at JAGGAER, emphasized that clean and consistent data enables AI-driven assistants and intelligent agents to support procurement teams more effectively. These digital tools can generate order proposals, handle routine supplier communications, and detect discrepancies between purchase orders and delivery data across the supply chain. By automating repetitive administrative tasks, procurement professionals can redirect their focus toward strategic sourcing initiatives, supplier development, and risk mitigation activities. The integration of multiple SAP systems worldwide into JAGGAER One underscores the importance of a unified data environment capable of supporting advanced analytics and automation.
Global Standardization Through Strategic Partnerships
Martin Wagener, Vice President Purchasing at ebm-papst, highlighted the value of partnering with both BearingPoint and JAGGAER during the solution selection and implementation process. Their comprehensive understanding of procurement workflows and digital transformation requirements reinforced confidence in achieving globally standardized processes. With strong collaboration among technology and consulting partners, ebm-papst is positioned to harmonize procurement practices across regions while maintaining flexibility to address local market conditions. The initiative represents a critical step toward establishing a cohesive, transparent, and scalable procurement framework.
About ebm-papst
Headquartered in Mulfingen, Baden-Württemberg, ebm-papst is recognized as the world’s leading manufacturer of fans and motors. Founded in 1963, the family-owned enterprise has consistently set international benchmarks in motor technology, electronics, digitalization, and aerodynamics. The company develops sustainable, intelligent, and customized solutions designed to meet diverse air and heating technology requirements across multiple industries, including air conditioning, refrigeration, heating systems, IT infrastructure, mechanical engineering, and medical technology. In the 2024/25 fiscal year, the group generated sales of €2.1 billion and employed approximately 13,500 people worldwide. With 25 production facilities spanning Germany, China, the United States, and other locations, along with around 50 sales offices globally, ebm-papst maintains a strong international footprint supported by innovation-driven growth.
About BearingPoint
BearingPoint is an independent management and technology consulting firm with European roots and global reach, specializing in transforming businesses through modern technologies. By combining industry expertise with deep knowledge in strategy, business processes, digital transformation, and artificial intelligence, BearingPoint supports organizations in navigating complex change initiatives. The firm operates across diverse industries, delivering tailored solutions through specialized SAP and Microsoft units and AI-focused service offerings. With a global workforce of more than 15,000 professionals serving clients in over 70 countries, BearingPoint has earned recognition from TIME World’s Best Companies and Forbes World’s Best Employers and is certified as a B Corporation for meeting high social and environmental standards.
About JAGGAER
JAGGAER is a global leader in enterprise procurement and supplier collaboration solutions, dedicated to enhancing human decision-making through intelligent source-to-pay technology. Backed by three decades of expertise, the company delivers AI-powered, industry-specific solutions that help organizations automate complex procurement processes while building resilient and accountable supplier networks. JAGGAER One integrates direct and indirect procurement activities across upstream and downstream operations, supporting businesses that require comprehensive and intelligent source-to-pay functionality. With a global team of approximately 1,200 employees, JAGGAER remains focused on enabling customers to create value, drive transformation, and accelerate their journey toward Autonomous Commerce.
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