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Customer Snapshot: Overview

Streamlining development time by 50%

A chic woman perched on a low concrete wall lunches on a hot dog and a soda, while a man in a custom-painted car cruises by with a case of beer in the trunk. What do they have in common? Oddly enough, Kaeser air compressors.

Company
KAESER Kompressoren AG

Revenue
€500 million

Number of Employees
5,000

Industry
Industrial Machinery & Components

Headquarters
Coburg, Germany

Customer Website
www.kaeser.com

Line of Business
Manufacturing, Sourcing and Procurement

SAP Solutions
Ariba procurement solutions, SAP Application Visualization by iRise, SAP Business Warehouse, SAP HANA, SAP Jam, SAP Solution Manager

From auto paint ovens and beer carbonation, to meat packaging and concrete, Kaeser air compressors figure in a huge range of products. And Kaeser Kompressoren AG meets their own high-pressure business needs with solutions from SAP.

Customer Snapshot: History

Nearly a Century of Designing and Manufacturing Compressors

Customer Snapshot: Business Model

Compressed Air For Every Purpose
 

Kaeser products can be found in every area of manufacturing and processing including the metal, automotive, chemical, plastic, printing, woodworking, and textile industries. Non-industrial facilities such as hospitals, laboratories and high-rise buildings frequently rely on Kaeser to supply their compressed air needs. Kaeser’s positive displacement blowers and vacuum packages are used in pneumatic conveying, waste water treatment, soil remediation, and other process applications.

CIO Falko Lameter Describes the Company and the Purpose of its IT System

Customer Snapshot: Success Strategy

Speeding Up and Consolidating

Customers depend on KAESER KOMPRESSOREN for quality parts and service, and it delivers. By accelerating the process cycle for incident, problem, and change management, Kaeser consolidated outdated tools into one integrated and holistic IT infrastructure, company-wide, and centralized supplier information and contract management.

The Challenge

The Limitations of the Legacy

Kaeser was limited by lack of integration from legacy systems and sought increased insight to their complete IT infrastructure (PCs, notebooks, printers, servers, and switches). And the majority of its purchasing was decentralized, so for their next phase, they wanted to avoid the pitfalls of maverick spending and improve local purchasing power by consolidating their decentralized purchasing system.

Enter SAP

Going With a Proven Winner
 

Kaeser originally turned to SAP over 20 years ago to help them integrate 5 countries in their IT organization. SAP helped them grow to 50 countries when no one else could. SAP again was fit for the task to provide Kaeser with complete visualization of their IT infrastructure.

Because KAESER KOMPRESSOREN relies on the SAP® ERP application to manage almost every aspect of its business, they look to SAP for new solutions that offer full integration with the solutions already in place.

The Needs of a Growing Company. 

Enter SAP: The SAP Experience

The Test-Drive Sells It

Because they had such a deep knowledge of the SAP Solution Manager, implementation went without disruption. And by utilizing SAP Application Visualization, it enabled users to rapidly create an integrated, interactive view of an entire solution design which looks and behaves exactly like the desired solution. 

 

This “test-drive” allowed stakeholders to provide key feedback before any expensive coding took place. When they instituted Ariba Procure-to-Order, they started with 9 catalogs and within 9 months had 50 catalogs and more than 23 million products.

Visualizing the IT Infrastructure.

We selected Ariba solutions to help manage our indirect spend, hoping to bring all of our purchasing into the system. — Jörg Hülsmann, Head of Strategic Purchasing, KAESER KOMPRESSOREN SE

Better Business

A Long and Fruitful Partnership

A strong, fruitful partnership for over two decades continues as Kaeser Kompressoren turned once again to SAP for assistance. SAP helped consolidate several outdated tools into one upgraded data management tool. SAP showed Kaeser the way to unify their infrastructure management and application lifecycle management. The achievement of an integrated and holistic view of the company’s IT Infrastructure – company wide, along with tool consolidation and accelerated process cycle – will bring Kaeser Kompressoren back to SAP for its future IT innovation needs.

With centralized order processing Kaeser now has control over the entire process. This has led to better compliance with company standards and a reduction in maverick spending. Centralized catalogs enable Kaeser to finally compare apples-to-apples when looking at competing suppliers, resulting in lower overall costs and less time spent processing orders.

Better Business: Benefits

A Little Patience Pays Big Dividends

After working with SAP Application Visualization, it became clear that the solution implementation would benefit by waiting one month for a new enhancement package. By opting for the new enhancement package, Kaeser cut development time by 50% and avoided the expense of deploying two enhancement packages instead of one. Communication between IT and the business side became much clearer, resulting in a more harmonious, faster, and less costly development of processes and software programs.

Our ideas and processes have changed in many ways. For example, the way we work with a contract has transformed, with automated analysis of total spend, discounts, and comparative pricing. — Jörg Hülsmann, Head of Strategic Purchasing, KAESER KOMPRESSOREN

Better Business: Run Simple

The Virtue of Seeing the Whole Picture

Kaeser’s master data governance project will ultimately improve the quality of all of its products, including customer-related processes, and they see the potential to utilize SAP Application Visualization in other SAP and non-SAP software development projects, too.

Ariba solutions make life much simpler for buyers. There aren’t any incorrect invoices to fix or discuss. Rectifying errors used to involve hours and hours of work, and that is now completely eliminated. — Jörg Hülsmann, Head of Strategic Purchasing, KAESER KOMPRESSOREN

Journey Ahead

Planning Next Moves
 

Focusing on future IT innovations is important for Kaeser Kompressoren, as they plan to migrate to the SAP HANA platform. They plan to become even more efficient with centralized procurement for all indirect purchases, further improve supplier engagement, and create better, smoother processes throughout the company.

A New Relationship with the Customer. 


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