Terex Business Intelligence

Data Quality Firewall, data consolidation & validation for real-time supplier pricing Business Intelligence reports.

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Terex, a diversified global manufacturer, has net sales of $9.1 billion in 2007. Ranked 287 in the Fortune 500, Terex operates in 5 business segments: Terex Aerial Work Platforms, Terex Construction, Terex Cranes, Terex Materials Processing & Mining, and Terex Roadbuilding, Utility Products and Other.
Monitoring and controlling procurement spend across the Terex Group remains a key challenge for this highly acquisitive organization. To rationalize costs and increase purchasing leverage Terex has incorporated a spend visibility initiative into its supply chain – eCost application.
Fully integrated with Datactics’ web enabled Data Quality Firewall and File Validation tool, the eCost application empowered Terex to access reliable and timely direct material spend of 4 million transactions per annum with a current value of $6.3billion.

Challenge

As an extension of the eCost application, Terex implemented Global Benefit Tracking (GBT) to track savings and losses on direct material purchases across Terex.
To quantify savings and expenditure, Terex compared original and revised part-plan data. This data contained the required metrics for comparative analysis specifically supplier name, description code and unit of measure, together with direct and indirect costs.

Analyzing part-plan data accurately and effectively was virtually impossible. Previously data from across the 34 business units was emailed to the eCost team for analysis and reporting purposes. Acquiring the data was a laborious and frustrating task further complicated with business units located in different time zones. Once captured there was no quick and effective means to verify whether the data was accurate, weakening the validity of the Business Intelligence (BI) reports produced by the eCost application.

To maximize savings achieved through its supply chain, it was imperative that part-plan data be validated and uploaded instantly to produce real-time supplier pricing for comparative analysis within the eCost application.

We chose Datactics because of its Can Do attitude. It has now delivered three projects on time and on budget.

- Michael McGrath Director, Global Sourcing, Hydraulics Terex

Solution

Following on from the successful delivery of the Data Quality Firewall and File Validation tool, Terex contracted Datactics, specialist in data quality solutions, to effectively track the savings and expenditure obtained across its global supply chain. Renowned for its flexible and highly scalable software, Datactics implemented a secure web enabled solution for the remote upload and validation of part-plans.

The automated validation of format and verification of content reduced delays imposed by a manual system across varying time zones. To satisfy the global nature of the business, the solution was designed to manage data in multiple languages 24/7.

The solution has had a positive impact upon both strategic and operational functions. It released valuable labor resources for more profitable tasks. Specifically the time consuming process of manually coordinating and acquiring part-plan data from across the Terex Group was replaced with a simple, efficient and automated facility.

Now when new pricing strategies are agreed, users simply record the accurate part-plan data in a consistent format, which feed directly into the eCost application. Furthermore the solution facilitated the ownership of business data by business unit away from the IT department.

Fundamentally with reliable and timely data entering eCost, its output of Business Intelligence reports is a trustworthy source for founding new business initiatives. This knowledge capital will build over time to enable analysis of the effectiveness and costs of working with particular suppliers and will allow Terex to increase its purchasing leverage.

Results

  • Reduce direct global material spend
  • Identify and implement best pricing strategy with immediate effect
  • Increase agility to respond quickly to adverse cost pressures
  • Enhance visibility and transparency of cost challenges
  • Release labour resources for more profitable tasks
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