Hear from our Procurement Game Changer
How it all started
WernerCo began in 1922 as a ladder manufacturing company. Today, they are still the number 1 brand in ladders in North America as well as a global manufacturer and distributor of access products, storage systems, truck/van equipment, fall
protection, material handling, logistics, engineered solutions, and light duty construction equipment.
About WernerCo:
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Established in 1922 and involved in the manufacturing industry
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Has over 20 globally recognized brands in 8 product categories
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Sells in over 100 countries worldwide and sources from 27 different countries
Challenge
WernerCo has seen tremendous growth in the last decade by diversifying their portfolio with global brands that are also the number one brand in the markets they serve. Their revenue grew from $400 million to over $1.1 billion. Despite the growth of the company, their procurement function had not scaled with the growth to handle the scope and complexity of their operations. WernerCo needed to embrace digitalization to manage spend strategically and strive for continuous improvement. As VP Global Procurement, Darren McGrath joined WernerCo to lead the company’s strategic procurement transformation journey.
Solution
The procurement transformation journey of WernerCo consists of a 4-factor roadmap with the vision to become data-driven and to strive for continuous improvement.
McGrath emphasizes that to create the digital transformation strategy, WernerCo leveraged functions besides procurement as early and as frequently as possible because collaborations across functions can close gaps sooner, and value propositions could be identified quicker in order to justify investments.
McGrath advocates that the simple equation of capable people executing capable processes using capable tools results in sustained success. This is where Sievo’s user-friendly tools play their part in supporting WernerCo’s transformation strategy which consists of WernerCo’s foundations and fundamentals such as Master Data and Management Processes.
To be data-driven requires one to have tools that explain data quickly and easily. Sievo’s Spend Analysis facilitates such a process by providing visibility on WernerCo’s global spend data, which is mapped to their four-level taxonomy and consolidated supplier groups.
Additionally, Sievo’s Savings Program Management (SPM) leverages WernerCo‘s savings opportunities as savings projects’ performance can be tracked to the line-item level on one globally connected platform. For a holistic view, Sievo’s Realized Savings Measurement (RSM) presents WernerCo’s saving comparisons, for example, their year-on-year savings or cumulative savings development in a year versus carry-over savings.
Such data transparency not only simplifies procurement processes but also reinforces the work procurement teams have accomplished.
Unfortunately, many organizations still see procurement only as an ability to deliver cost savings, this is sometimes even the only measurement of procurement value. McGrath speaks out of the experience when he urges the need for companies to have capable tools that can facilitate procurement processes because, besides cost savings, procurement can deliver broader value to the organization through digitalization.
Results
Thanks to McGrath’s Transformation Strategy, WernerCo has improved their working behavior as the organization is now fully embracing digitalization. McGrath describes that being hungry for data and driven by continuous improvements has become a part of WernerCo’s DNA which leads to a winning company culture.
WernerCo’s usage of Spend Analysis, Savings Program Management and Realized Savings Measurement has supported in their operational and risk management successes, for example Sievo’s globally connected platform has enhanced information sharing between WernerCo’s business units. Especially in the times of the pandemic where quick responses were needed, WernerCo’s digital spend and savings data knowledge gave them the advantage of leveraging their supply chain actively instead of weeks trying to collect and understand data manually.
Image on right: example of Sievo Savings Program Management Dashboard.
