How TGW Logistics Saves Millions with JAGGAER

TGW Logistics, one of the world's leading providers of highly automated intralogistics solutions, originally started using JAGGAER in 2016 to boost operational efficiency through increasing automation.

Since then, it has come to rely on its aid with source-to-pay activity. JAGGAER can also be seen throughout its supplier relationship management, sourcing, contract management and e-procurement.

JAGGAER’s source-to-pay (S2P) platform helps companies manage and automate difficult processes, alongside enabling efficiency and resilience within the supply chain.

Operational efficiency

TGW Logistics provides highly automated intralogistics solutions to its customers, featuring end-to-end automated systems and modular technologies. It aims to solve workflow challenges and modernise fulfilment operations throughout the chain.

After TGW Logistics’ expansion in 2016, it faced a range of difficulties in managing its processes. Its previous infrastructure could not meet the needs of TGW Logistics’ product range and demand of global procurement processes.

As a result, it introduced JAGGAER One to provide more efficient running. JAGGAER–a global leader in enterprise procurement and supplier collaboration–boasts that with its help, companies witness a 40% productivity increase in employees.

Companies also see an 80% cost reduction and an 85% reduction in invoice processing time. The tasks JAGGAER does for its customers allows these businesses to run smoother and provides a more streamlined approach.

With the help of JAGGAER’s supplier management systems, TGW Logistics experiences a full view of its 1,700+ connected suppliers. 

This means it has full supply chain transparency, with full traceability. As a result, its purchasing teams can see all relevant data and supplier-specific documents at once, allowing for more efficient and accurate negotiations. 

"With JAGGAER, we were able to automate routine activities and thus gain more time for process improvements," explains Lisa Steininger, SCM Process Manager at TGW Logistics.

"This not only led to optimized workflows, but also to significant cost savings."

With the seamless data exchange between the SAP/4 HANA ERP system and JAGGAER, operational efficiency is at an all-time high for TGW Logistics. With a reduced need for manual intervention, the risk of human error is significantly reduced, resulting in smoother, more accurate operations.

JAGGAER has helped the company save €2.4m (US$2.8m) in a single year in process costs, due to the seamless solutions it provides.

Growth opportunities

By using JAGGAER, TGW Logistics has seen a rapid expansion within its supply chain.

In 2024, more than 55,000 supplier orders were placed with TGW Logistics. These all began in SAP and filtered to JAGGAER as an automated and streamlined flow. This shows how the efficiency of JAGGAER helped meet supply and demand within TGW Logistics.

Moreover, new suppliers benefit from this tool, as it ensures a productive onboarding process with user-friendly questionnaires. 

JAGGAER helped TGW Logistics process more than 3,400 tenders in 2024. Created in SAP, the more direct material was then transferred to JAGGAER. The more complex and extension projects, however, were created directly in the JAGGAER platform. 

Without that platform, TGW Logistics would have been looking at significantly lower numbers, without the capacity to process these projects at such a speed. 

"Companies today face rising costs in all areas, which makes the identification and utilization of potential savings critical,” comments Jochen Krüger, Vice President Germany, Austria & Switzerland at JAGGAER.

“What TGW Logistics has achieved with our JAGGAER solutions is an ideal example of what is possible with the right purchasing tools. We are delighted to be able to support the company on this journey and look forward to the next steps.”

TGW Logistics is already looking towards what JAGGAER can do for it next. It is planning to implement JAGGAER’s Action module to help with the expansion of supplier management and to focus more on risk management. 

Based on the results already seen throughout this relationship, JAGGAER is sure to help TGW Logistics meet its goals.