Summary how Danfoss secured 15% savings on their IT purchasing (hardware and accessories) in 24 EMEA countries. This project was shortlisted for the World Procurement Awards 2020: External Collaboration Category. See https://worldprocurementawards.com/shortlist/

1. PARTNERSHIP
AVERAGE PRODUCT PRICE REDUCED:
14,5% IN YEAR ONE, 10-14% THEREAFTER.
THOUSANDS OF HOURS SAVED FROM
REDUCING PROCESS AND PURCHASING TIME.
REDUCED SUPPLIER COUNT... FROM 130
DOWN TO 1
AVERAGE DELIVERY TIME CUT 90% FROM 28
DAYS TO 2.75 ACROSS 25 COUNTRIES.
STABLE FOR 5 YEARS.
GOALS
• Reduce costs of products purchased
• Reduce time spent on purchasing processes
• Increase insights into purchasing patterns
• Data visualization and cost awareness
• Total automation for optimal workflow
• Simple system with transparent supplier
information and pricing
• Reduce their supplier count
DANFOSS SITUATION 2014
€2M annual spend on IT accessories from
130 suppliers across EMEA region.
DANFOSS IS AN IDEAL PARTNER
The Danfoss team’s commitments
to professionalism, innovation and
delivering value to their shareholders
allow us to consistently deliver significant savings
in both actual product costs and IT purchasing
process time. Our relationship a perfect example
of win-win for all concerned, with a bright future
in EMEA and beyond.
Margus Vahemäe
Head of Sales at Markit
KEY IMPACTS
The Danfoss Group manufactures products
and provides services used in cooling food, air
conditioning, heating buildings, controlling electric
motors, gas compressors, variable-frequency drives
and powering mobile machinery.
Danfoss Procurement employs more than 500
people employees worldwide that aim to increase
supplier performance, develop active partnerships
to expand business opportunities as well as
minimize complexity and annual costs.
Danfoss makes significant investments in growth
initiatives and digitalization to advance its
connected, intelligent solutions. In 2018, Danfoss
invested a record-high EUR 255m equal to 4.2% of
sales into innovation.
ABOUT DANFOSS
• Centralised, approved product catalogue
management for all countries
• Special prices for high volume categories and brands
• Automated Ariba integration
• Clearer overview of spending patterns, with
detailed, visualised insights
• Reduced carbon footprint (shorter delivery distances)
• Ability to rollout in a new country in days, not
weeks or months
DANFOSS SUCCESS STORY
EMEA consolidation project cuts IT purchasing costs
by 15% in 24 countries
ENGINEERING SERVICES IN 100 COUNTRIES WITH 28,000 EMPLOYEES
DANFOSS.COM

2. THE PROCESS
MARKIT ADDRESSED OUR CHALLENGES HEAD ON
The Markit system gives us a single, simple and transparent, cross-border Danfoss
IT purchasing system. Markit has consistently impressed us with their long-term
business view, flexibility, quality of service and, most importantly, their ability to
repeatedly deliver cost savings.
Claus Mikkelsen
Danfoss Global Category Manager
INTEGRATION
Integration with our ERP and Ariba was quick and easy, for example in one quarter,
we rolled out in 7 countries. The Markit infrastructure and system is geared towards
internationalisation and has the flexibility to tailor special features to meet our
needs. Peeter’s team is friendly, professional and fast.
Joanna Siemiatkowska
Global Project Manager
Christine Christensen
Vendor Operations Specialist
CONFIGURATION
Configuration of the catalogue, customisation of management report dashboards
& templates, defining user roles and setting limits for various end users were all
straightforward.
Carsten Matthiesen
IT-Purchaser at Danfoss Global Services, Procurement Order Management
ONBOARDING
Onboarding of users was efficient. It’s a complex system but easy to use. Much easier
than the process we had before. Jüri and his team in customer service are always
there for us if we need help too, which is rare.
Casey Gigler
Head of IT Services Americas
LET’S TALK
Let us help you succeed. Streamline your IT
purchasing process and reduce your total
cost of purchase.
Margus Vahemäe
Head of Sales at Markit
Phone: +372 666 9905
E-mail: margus.vahemae@markit.eu
Christian Lunøe
Country Manager at Markit Denmark
Phone: +45 60 98 80 88
E-mail: christian.lunoe@markit.dk TAKE THE CHASING
OUT OF IT PURCHASING
ABOUT MARKIT
Markit is helping IT buyers save time and money
by making IT purchasing simple and transparent.
Since 2003, thousands of international
companies, including 20% of the Forbes Global
2000, have been using the Markit online IT
purchasing solution to manage, centralise and
streamline their IT purchasing and reduce the
Total Cost of Purchase for their IT hardware and
device requirements.
WWW.MARKIT.EU 2019