Illinois Tool Works Sourcing Optimization Case Study

This case study details the implementation of JAGGAER's advanced sourcing solutions by Illinois Tool Works (ITW), a global manufacturing leader with significant procurement operations. ITW transitioned from a traditional ERP provider to JAGGAER One to enhance its sourcing capabilities and achieve substantial cost savings. The study outlines the challenges faced by ITW in managing complex procurement processes across multiple categories and locations. By leveraging JAGGAER's platform, ITW was able to optimize sourcing for both direct and indirect materials, resulting in savings of approximately 5% for direct materials and up to 45% for indirect materials. The case study also highlights the improvements in bid cycle times and compliance with responsible sourcing practices. ITW's strategic sourcing department managed over $500 million in spend, utilizing JAGGAER to consolidate buying power and enhance supplier relationships. The future plans include exploring additional features of JAGGAER's tools to further improve procurement efficiency and cost management.