Daimler Spearheads Digital Transformation with Icertis

As a forward-looking enterprise, Daimler chose Icertis to streamline its supplier contracting processes.

Objective

Increase agility in order to accelerate time-to-market for new products.

Highlights

  • Unified procurement across different business units
  • Item-level quote comparisons
  • Automated sourcing requests
  • State-of-the-art deviation analytics for legal

Business Challenge

Daimler, one of the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles, recognized that it needed to improve its agility to compete in today’s rapidly changing business environment. The systems the company used to manage its sourcing processes were decades old and fragmented across multiple platforms.

The company has more than 500,000 suppliers, and on account of its fragmented system, onboarding new suppliers required them to go through multiple systems—including non-integrated processes for issuing RFPs, selecting suppliers, and tracking suppliers’ performance and contract terms.

The automotive manufacturer wanted a contract management solution that could address these issues as well as form the foundation of a broader digital transformation that would prepare it for future success.

Solution

Daimler developed an RFP for a supplier contracting solution, and the Icertis Contract Management (ICM) platform differentiated itself from the competition through its robust treatment of the entire lifecycle of the contract and sourcing processes. Daimler recognized the ICM platform as providing the foundation of a new digital approach to procurement, and also took advantage of the ICM Sourcing app, a specialized business application for procurement organizations.

For employees in the procurement division, ICM made the process of publishing RFPs and selecting a proposal much simpler, and empowers buyers to use past performance and price to cherry pick the best suppliers. Meanwhile, the legal department is using ICM better track deviations and contract lead times—data that can be used to further optimize contracting processes.

And ICM is easy to use, with the platform providing strong functionality while remaining easy to configure based on changing business needs. Integration with Office 365 allows users to edit contract terms directly in Word and to upload large volumes of prices lists and other data via Excel.

Results

ICM was deployed at the auto manufacturer in record time—80 percent faster than its historic software implementations. Daimler is now managing its entire roster of suppliers on the platform. It is also exploring several other areas to implement ICM, and is an early adopter of the ICM AI applications.

“We chose the Icertis ICM platform and ICM Sourcing app because of their ease of use, ability to address every phase in the contracting and sourcing processes, and seamless integration with third-party systems that support the entire procurement life cycle. The deployment optimizes the source-to-contract process by ensuring best-in-class supplier evaluation, selection, contracting, and collaboration.”

Dr. Stephan Stathel, Operations Lead for New Procurement System and Team Lead for the Build2Run Team at Daimler AG

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