SAVINGS ON A NEW LEVEL

How Phoenix Contact benefited from a procurement transformation

Phoenix Contact has been family-owned since 1923 and manufactures components for electrical engineering, electronics, and automation. A global network of locations continuously drives innovation. These solutions are used across industries.

In 2020, Phoenix Contact faced the major challenge of maintaining oversight and control of procurement savings initiatives across ten production sites worldwide. All data needed to be collected centrally, a custom set of KPIs captured, and results evaluated quickly.

Corporate Purchasing management understood that the success of the new, company-wide savings process would depend primarily on employee acceptance and sustained engagement. A demanding task.

Phoenix Contact has been family-owned since 1923 and manufactures components for electrical engineering, electronics, and automation. A global network of locations continuously drives innovation. These solutions are used across industries.

Prior to Valuedesk, we had already tried a software solution that was very cumbersome, extremely slow, and limited to spreadsheet calculations. Our employees were reluctant to use this software and therefore did not engage with it intensively.

Michael Sterz

Senior Director Corporate Purchase Governance

THE SOLUTION – A SPECIALIZED TOOL FOR THE ENTIRE TEAM

The SaaS platform from Valuedesk, the Value Management System, stands out for its dedicated focus on managing optimization measures and its usability based on modern UI/UX standards. 

Templates allow ideas to be added instantly. The severity-level methodology as a stepwise process, combined with clear responsibilities and defined tasks, simplifies and accelerates the execution of measures. Dashboards enable progress and outcomes to be evaluated with a single click. After just 90 minutes of training, procurement teams can use the tool effectively.

For management, the platform provides both a Kanban overview of all measures—with their potential value and status—and detailed views containing every implementation detail. All communication, including attached files, is stored within each measure’s tile. This seamless digital documentation forms the foundation for analysis and prioritization.

To uncover new optimization potentials and trial fresh approaches, the integrated Methods Explorer (MEx) includes over 130 best-practice methods. These can serve as inspiration or be launched directly as activities.

Beyond the software itself, the Valuedesk Operator acts as a dedicated partner to ensure the performance and stability of your new processes through expert onboarding, in-depth analyses, benchmark data, actionable recommendations, and motivational support. 

We evaluated numerous project management applications, measure trackers, and controlling tools, but no other solution offers this unique blend of controlling, collaboration, and connectivity.

Michael Sterz

Senior Director Corporate Purchase Governance

RESULTS – HOW PHOENIX CONTACT IS OPTIMIZED TODAY

Phoenix Contact has rolled out the Value Management System as both a tool and a source of information and inspiration at all its major production sites. Traditional and innovative measures are executed consistently, evaluated within the company’s KPI framework, and benchmarked against one another. Users receive automatic notifications and can comment, while all information is gathered centrally—making Valuedesk a reliable single point of truth.

User engagement has risen markedly compared to prior practices, thanks largely to the platform’s user-friendliness. Intuitive operation, bolstered by gamification elements and streamlined workflows, reduces resistance and motivates immediate uptake.

The software also provides governance controls: where Excel workflows often suffer unintended changes, Valuedesk enforces clear standards—what Phoenix Contact calls “Guided Savings.” This standardization enabled more than 100 active users to be onboarded effectively.

By leveraging the platform, Phoenix Contact implemented and fully documented over 1,000 savings initiatives in a single system. Real-time analytics allow management to view potentials and progress at a glance, detect delays early, and remove obstacles. Procurement successes and negotiation outcomes are now far more transparent, supporting rapid, insightful reporting. 

WITH VALUEDESK, PHOENIX CONTACT HAS ACHIEVED IMPRESSIVE RESULTS

Measures
0
Active user
0
Involved companies
0

Prior to Valuedesk, we trialed a software solution that was cumbersome, extremely slow, and confined to spreadsheet calculations. Our employees used it reluctantly and did not engage with it deeply.

Michael Sterz

Senior Director Corporate Purchase Governance