Historically, Terex supply chain decisions have been made from an individual business unit perspective. This provided limited opportunity to leverage Terex’s size. To ensure products are manufactured at best in class levels regarding costs, quality and delivery methods, Terex decided to focus on gaining efficiencies with suppliers based on the company’s global purchasing power and resources in a way that transcends individual business units.
With an objective to increase global purchasing leverage as a unified company, Terex implemented the eCost application to provide spend visibility across the Terex Group. Managed by the eCost team in Dungannon, Northern Ireland, the system captures direct material spend transactions from over 10,000 suppliers and 500,000 different part codes from a range of ERP systems located in 35 business units worldwide.
The ability to accurately analyze direct material spend of over 3 million transactions per annum (currently with a value of $5.5 billion) was hindered by files containing incorrect, missing, obsolete and unstructured data. The cleansing and validation of results was manually processed. The challenge was to achieve an accurate and standardized format of global spend data on a more regular basis. Specifically this meant automating the validation and uploading of files from various remote Terex operations units around the world and then providing a solution for the cleansing, matching and enrichment of the data before processing by the eCost application.