The Family-Run Hager Group Restructures its Purchasing Processes with Advanced Analytics

Challenge

The Hager Group, a leading manufacturer of electrical distribution panels and installation solutions, wanted to simplify its purchasing processes.

In 2017, the company, which is headquartered in the German town of Blieskastel and sells products in over 120 countries, benchmarked its purchasing organization. This assessment revealed that while all processes were running smoothly, many of them were too complex. In order to find a suitable way to optimize its purchasing processes and improve them, the Hager Group first needed a comprehensive analysis of those processes. It chose Tata Consultancy Services (TCS) as its partner for the analysis and consulting.

Advanced analytics reveals the potential for optimization.

The consultants from TCS had proposed a detailed advanced data analytics concept, in contrast to traditional methods of organizational design, to improve the Hager Group’s purchasing organization. Leveraging their expertise in procurement and in designing organizational processes, the TCS consultants had in-depth discussions with the employees and managers of the Hager Group involved in procurement, and ensured that the customer’s team accepted the process and the associated changes. During the analysis phase, which followed the discussions, the TCS team used advanced analytics to examine all digital records related to the Hager Group’s purchasing processes. For example, they questioned why orders were placed with certain suppliers as opposed to others. They also looked at who was responsible for specific orders, identified any inefficient or non-standard processes, and determined which processes could be digitized or automated.