NGK Corporation Streamlines Indirect Material Purchasing with Biznet

NGK Corporation's Transition to Biznet's Purchasing Platform

NGK Corporation, renowned for its advanced ceramic technologies, has made a significant leap in efficiency by opting for Biznet's purchasing management platform. This transition, undertaken after evaluating about ten other solutions, marks a pivotal change in how NGK manages its indirect material procurement. The results are impressive, with an estimated annual savings of around 4,500 working hours.

Background of the Implementation

NGK, headquartered in Nagoya, Japan, operates globally in various sectors, including mobility, energy, and semiconductors. The company's procurement department handles a wide range of tasks, from sourcing direct and indirect materials to managing supplier relationships and overseeing purchasing systems. Previously, NGK faced several challenges with its existing purchasing management system:

- Challenges for On-Site Users:

- The precision of product search functions was inadequate, forcing users to individually check multiple punch-out sites.
- Time-consuming processes for product comparison and identifying the best prices.
- High workload to locate necessary products.

- Issues for Management:

- Operations related to product masking, catalog updates, unit price management, supplier coordination, user management, and inventory tasks were heavily burdensome. Ongoing costs associated with BPO contracts and system usage fees compounded these issues, resulting in a need to reassess cost-effectiveness despite some reductions in purchasing costs.

Why Biznet?

After thorough consideration of various options, NGK chose Biznet due to several appealing factors:
1. Reduction in Operational Load:
- Biznet offers comprehensive support in catalog and supplier management and customer inquiries. This consolidation allows NGK's procurement team to expect significant reductions in administrative burdens.

2. Superior Search and Usability Features:
- The ability to conduct cross-supplier product searches and compare prices has drastically improved user efficiency, reducing product search times. Feedback from users during trial phases highlighted high satisfaction levels, illustrating ease of navigation and usability.

3. Trust in Support Systems:
- The understanding and thorough support exhibited by Biznet during the proposal stage fostered trust, ensuring ongoing assistance post-implementation.

Impact of Implementation

The implementation of Biznet’s platform has yielded remarkable outcomes for NGK:
1. Reduction of Annual Work Hours by 4,500:
- Previously, product purchases required checking multiple catalogs, taking about eight minutes per transaction. The new system has cut this down to approximately five minutes, leading to significant time savings for on-site personnel.

2. Decreased Operational Costs:
- Tasks such as catalog management and supplier coordination can now be handled internally, alleviating prior burdens and reducing BPO expenses alongside management costs.

3. Enhanced Purchasing Experience:
- Post-implementation surveys indicated high satisfaction with expanded product choices, improved search capabilities, and ease of price comparisons, enabling a more informed purchasing process.

4. Shifting Roles for the Procurement Department:
- Before adopting the new system, staff mainly focused on operational tasks. With the new efficiency, they can now concentrate resources on strategic activities, such as purchasing strategy development, cost optimization, and enhanced governance through better data use.

In conclusion, NGK's partnership with Biznet epitomizes a successful modernization of procurement operations, enabling the company to not only improve efficiency but also focus on strategic enhancements that drive further value.

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