How Automotive Supplier GRAMMER Realises Cost Savings with ivoflow
GRAMMER AG, an automotive supplier headquartered in Ursensollen, has chosen ivoflow as its spend analytics solution for direct procurement. The software enables manufacturing companies to sustainably reduce their purchasing costs. The digital solution has been in use since the end of 2024.
About the Customer
GRAMMER AG, headquartered in Ursensollen, specializes in the development and production of components and systems for passenger car interiors, as well as sprung driver and passenger seats for on- and off-road vehicles. In the automotive sector, the company supplies headrests, armrests, center consoles, high-quality interior components, and control systems to renowned passenger car manufacturers and system suppliers in the automotive industry. The Commercial Vehicles division covers the business areas of truck and off-road seats (tractors, construction machinery, forklifts) as well as rail and bus seats. With around 12,000 employees, GRAMMER operates in 20 countries worldwide. GRAMMER shares are listed in the Prime Standard and traded on the Munich and Frankfurt stock exchanges as well as via the electronic trading system Xetra.
The automatically generated overview of potentials has already proven to be a valuable tool in our procurement. It provides us with transparency across all procurement levers — from dual-sourcing strategies and claw-backs to benchmarking and precise cash flow analyses — and helps us identify savings opportunities, manage risks in a targeted manner, and strengthen the resilience of our supply chain.
Challenges
Driven by the cyclical weakness in demand in the commercial vehicle sector and upheavals in the automotive industry, cost savings are becoming increasingly important. The supplier’s goal is to make the procurement organization so competitive that it sustainably contributes to securing our profitability. Since the end of 2024, the digital platform ivoflow has been in use at GRAMMER, providing comprehensive transparency over purchasing volumes, the supplier base, and the large number of part numbers. Focusing on savings in direct procurement, the GRAMMER team primarily uses the automated cost-saving toolbox within the platform. By enriching ERP data with external market data, the ivoflow solution identifies how market changes – such as rising raw material prices or increases in energy and labor costs – impact the supply chain. These effects can be traced down to the part-number level.
Levers used
in the cost saving toolbox
Raw Material Clawback
Rising raw material prices and their impact on the supply chain ca be traced down to the part-number level.
Energy Clawback
Absolutely no pressure. You are just a whisper floating across a mountain. There's nothing wrong with having a tree as a friend. We don't make mistakes we just have happy little accidents.
Dual Sourcing
The identification of alternate suppliers enables GRAMMER to manage risks in a targeted way, and strengthen the resilience of its supply chain.
Results & Outcome
The automatically generated overview of potential savings already proves to be a valuable tool for the procurement organization. It provides transparency over all procurement levers – from dual-sourcing strategies and claw-backs to benchmarking and precise cash flow analyses – and helps the team identify savings opportunities, manage risks in a targeted way, and strengthen the resilience of the supply chain. In addition to their deep expertise in the automotive sector, we especially appreciate the clear communication. The team ensures regular exchanges with all stakeholders to involve all relevant areas and thus guarantee the broadest possible use of the solution.
Want to know more
about our procurement solution?
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