Case Study: Danfoss cuts IT purchasing costs by 15% with Markit Holding AS

How the Danfoss EMEA Consolidation Project Cut Costs by 15% in 24 Countries

Danfoss, a global engineering group with 28,000 employees, faced high costs and inefficiency from managing 130 different suppliers for IT accessories across its EMEA operations. Their challenge was to consolidate this complex purchasing process, reduce spending, and gain better insights into their procurement patterns. They partnered with vendor Markit to implement its online IT purchasing solution to address these issues.

Markit provided a centralized and automated purchasing system that integrated seamlessly with Danfoss's existing Ariba and ERP platforms. The solution consolidated all purchasing onto a single platform, drastically reducing their supplier count from 130 down to just Markit. This partnership resulted in a 15% reduction in IT purchasing costs, with the average product price cut by 14.5% in the first year. Markit also helped slash average delivery times by 90%, from 28 days to just 2.75 days.

Danfoss

Claus Mikkelsen

Global Category Manager