DMG MORI has taken global supplier scouting to the next level - at the touch of a button and backed by state-of-the-art-technology, suitable suppliers can be found worldwide.
Using Artificial Intelligence and Big Data: Worldwide supplier discovery at the touch of a button
As one of the worldwide leading manufacturers of machine tools, DMG MORI has extended the core business with integrated automation and end-to-end digitization solutions. The company is also increasingly focusing on digital transformation in the area of strategic supplier management.
Building resilient, agile and sustainable supply chains is a significant success factor for DMG MORI - especially in view of prevailing technology shifts and volatile and unpredictable markets. Upon recommendation, by the end of 2020 the DMG MORI Procurement Department turned to Matchory to power their global supplier scouting and to bring it to the next level.
Replacing manual and inefficient supplier scouting
Timo Rickermann (CPO at DMG MORI) and his team were unsatisfied with the results of manual supplier scouting in previous projects. Having previously relied on references, open web scouting and other software solutions, DMG MORI was looking for an automated, transparent and fast way to prevent further time-consuming and error-prone procurement processes.
DMG MORI's demand: High-quality manufacturers and suppliers should also be found outside the known and existing supplier networks.
"With Matchory we bring information transparency into the supplier market. Today, I know much faster which suppliers exist at all and I can compare them directly and evaluate them more effectively. That is an absolute added value by now."
Data-driven supplier analysis to speed up the supplier scouting process up to 85%
The Matchory Software leverages state-of-the-art machine-learning concepts and unique algorithms to identify relevant suppliers that fit the client's requirements.
From the very beginning, DMG MORI was convinced by the idea of a special procurement search engine and initially used Matchory to search for suitable cast iron suppliers for machinery parts in global markets (e.g. India, China, Eastern Europe).
How DMG MORI used Matchory to create a Smart Longlist of suppliers within minutes:
1. Sourcing request
In the first step, DMG MORI defined a requirement profile for their specific sourcing case, with the ability to evaluate and consider up to 50 different data points. In addition to relevant keywords, these include e.g. relevant competitors and HS codes.
2. Data analysis & holistic comparison
By screening more than 10 billion data points in real-time, the suppliers with the largest intersection according to demand were identified. As a result of the instant data analysis, DMG MORI received a list of potential suppliers that perfectly matched the requirements within minutes.
3. Longlist evaluation & customization
Using the Smart Longlist, DMG MORI was able to analyze and evaluate which suppliers best matched the project requirements and refine the list (e.g. industry-specific certifications, ethical practices, corporate relationships). The results both validated DMG MORI's previous manual scouting processes and expanded the existing supplier list significantly with previously unknown, new suppliers.
Optimized supply chains and great insights due to up to date supplier data
Mario Hellmund, Director Global Sourcing at DMG MORI,claims:
"The difference to open web search is obvious: Results appear at your fingertips, in the shortest possible time and with little effort. We can narrow down the outcome immediately."
Since implementing the Matchory tool, DMG MORI achieves more valid information during worldwide supplier scouting thanks to smart technology and always up to date supplier data.
In the long term Timo Rickermann and Mario Hellmund intend to integrate Matchory into strategic procurement processes and day-to-day business. The possibility of a technical interface to other tools is currently being examined.
Long term advantages implementing Matchory's smart supplier search
- Comparison of 100x moresuppliers worldwide per sourcing request
- Sourcing time savings up to 85%
- High flexibility and faster reaction time to changing market conditions
- Transparent global supply chains and a deep understanding of the global supplier market
DMG MORI is a leading global manufacturer of machine tools. The integrated automation, digitization and sustainability solutions broaden the company’s core business of turning and milling machines, advanced technologies (ULTRASONIC, LASERTEC) and additive manufacturing. The customer-oriented services over the course of a machine tool’s entire lifecycle include training, repair, maintenance and spare parts service.