Interview: Procurement Cost Optimization at WITTENSTEIN SE
Marc Kloepfel
CEO @Kloepfel Group | Strategic Procurement Expert | Corporate & Real-Estate Investor | 1000+ SCM Projects | AI-Advocate | Ukrainian Reconstruction
Interview Partners:
Source: WITTENSTEIN SE
Did you conduct a potential analysis regarding savings opportunities before the Kloepfel project?
Sven Siegl: Yes, and it was a very exciting topic. We were particularly impressed by the preliminary work and the in-depth knowledge of the team. The presentation of the results from the potential analysis was also very convincing.
Michael L?ser: I felt the same way. Even during the potential analysis, it became clear how much we as a company, especially our procurement team, could benefit from their expertise. I spoke with several employees and asked them whether we should proceed with the project. Everyone agreed: "Yes, let's do this. It will help us move forward." Apart from the commercial savings, the methodology and expertise of Kloepfel were the decisive factors for us. That ultimately led us to start the project.
What were the project goals?
Sven Siegl: Cost savings were, of course, a major priority. However, beyond that, we wanted to compare ourselves with other companies. Benchmarking and the confirmation or optimization of our strategy were key focus areas. Additionally, we wanted to learn from the project to expand our toolbox.
Which categories were analyzed?
Sven Siegl: The analysis revealed key focus areas in logistics and packaging materials. We wanted to take a comprehensive look at our logistics—from transport, special deliveries, and express services to pallets. Additionally, we focused on marketing, IT, facility cleaning, auxiliary and operational materials, tools, and maintenance of industrial trucks.
How satisfied were you with the project results?
Michael L?ser: The savings, particularly in transportation, were absolutely satisfactory and exceeded our expectations. But what impressed us even more was the human aspect and sensitivity that Kloepfel demonstrated. They knew exactly which areas could be challenging and where they needed to proceed with caution. Additionally, Kloepfel effectively engaged WITTENSTEIN SE employees and coordinated communication with suppliers well.
Initially, I had concerns that we might face some negative consequences, but that was not the case at all—quite the opposite. We were able to gain the support of different departments, improve quality, and establish close relationships with key stakeholders. For me, apart from the cost savings, that was the most valuable outcome of the project.
What were the biggest challenges of the project?
Sven Siegl: In areas where departments were not accustomed to procurement actively supporting them, we faced some challenges at the beginning of the project. Additionally, we had a very tight schedule. We had to evaluate incoming offers, schedule meetings, conduct negotiations, and continuously adapt our strategy to new developments.
However, by working closely with Kloepfel, we managed to successfully overcome these challenges.
Another key aspect I would highlight as a leader is that, with Kloepfel, we temporarily had additional "colleagues and coaches for a limited time." From a leadership perspective, it felt as though our department had suddenly doubled, leading to an increase in decision-making requirements.
How sustainable is the project success?
Michael L?ser: The project was not just about savings. A key focus was ensuring that our existing supplier relationships were not put at risk. Sustainability also means that our procurement team learned a lot—both in terms of tools and methods, as well as how to prepare, execute, and quickly implement measures.
A critical success factor was also the collaborative development of results. We participated in supplier discussions, had shared points of contact, and maintained a unified communication strategy. This allows us to continue working professionally with suppliers while applying the insights we gained.
Which tools and methods did the consultants use on-site?
Sven Siegl: We applied various levers across different categories, including strategic negotiations and tenders. We also tested e-auctions, which worked very well.
Additionally, I believe it is important to reflect on the project afterward to extract key learnings. The procurement team can continue using tender documents from the project across different locations.
Michael L?ser: A good example of this is the tender documentation for cleaning services. In the past, there were frequent disputes over whether cleaning was done properly or not. Now, we have detailed cleaning service requirements documented, which has resulted in better offers and improved service quality.
The same approach was applied to transportation contracts. These are methodologies that we will continue to use.
Many companies fear an increased workload when starting a consulting project. How did you perceive it?
Sven Siegl: We were aware from the beginning that the project would bring additional workload for a certain period. What made it easier was the positive attitude and support from employees. It was definitely a challenging time, but no one complained about the extra effort.
How did you manage to get employees on board with the project?
Sven Siegl: Employees were closely involved from the start and quickly developed a good relationship with the Kloepfel team. The proposed measures were well justified, making them easy to understand.
Together with Kloepfel, we successfully ensured that no one felt like an outsider was coming in to impose changes. Instead, it was a process of mutual learning and complementing each other’s skills.
How did suppliers react to the project?
Michael L?ser: It is remarkable that we were able to achieve excellent results while maintaining strong supplier relationships. Often, such initiatives can damage long-standing relationships, but that was not the case here.
Sven Siegl: There was only one case where a supplier reacted defensively and emotionally, but that was the only negative response.
What is the long-term vision for procurement at WITTENSTEIN SE?
Michael L?ser: Our long-term vision is to strengthen existing partnerships while ensuring sustainable implementation of the changes we have made, without compromising competitiveness.
In the next phase, we will integrate additional locations and regions into our procurement category strategies. The foundation for this has already been laid.
We will also continue applying Kloepfel’s methodologies and tools, which we learned during the project.
What is your final assessment of the project?
Sven Siegl: In summary, I can confidently say that this project was a success in many ways—from results, teamwork, and the market insights we gained, to the tools and methods we acquired, and most importantly, the deep expertise of Kloepfel.
We can highly recommend Kloepfel Consulting as "colleagues and coaches for a limited time" to any company seeking to optimize procurement and cost management.
Company Profile: WITTENSTEIN – A Future-Oriented Enterprise
With around 2,800 employees worldwide and revenue of €461 million in the 2021/22 fiscal year, WITTENSTEIN SE stands for innovation, precision, and excellence in the field of cybertronic motion.
The group has exceptional expertise in mastering and advancing all relevant mechatronic drive technologies and consists of six innovative business units.
Their product range includes:
WITTENSTEIN operates in more than 45 countries across 25 locations, serving key technology and sales markets worldwide.
Interview conducted by:
Alexander Hornikel, Country Manager Kloepfel Consulting Germany
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