Case Study: Illinois Tool Works achieves millions in annual savings and optimized complex sourcing with JAGGAER

JAGGAER Optimizes Complex Sourcing for Global Manufacturer ITW to Achieve Millions of Savings Annually

Illinois Tool Works (ITW), a global diversified manufacturer with $7–8 billion in annual spend across more than 50 countries, struggled with an inflexible legacy eSourcing tool that couldn’t handle complex, multi‑component bids (for example, a $40M aerosol outsource RFP) or indirect categories. To gain flexibility, visibility and stakeholder collaboration, ITW moved to JAGGAER’s advanced sourcing/optimization solutions.

Using JAGGAER’s sourcing tools across all seven ITW segments, ITW now manages over $500 million in sourced events, consolidates buying power, enforces responsible‑sourcing requirements, and shortens bid cycle times. The program delivered measurable impact: average savings of about 5% on large direct‑material events and up to 45% on indirect purchases (e.g., $220K saved on a $5M lubricant buy; ~$63K saved on a ~$140K heating‑element purchase), plus faster, more insightful supplier decision‑making — all enabled by JAGGAER.

Illinois Tool Works

Jonathan Turoff

Strategic Sourcing Manager