‘One Source of Truth’: Graphite Puts Procurement at the Center of Wenger Manufacturing
Wenger is a leading manufacturer of high-quality processing equipment, specializing in extrusion, drying, and food production systems.
After losing close to $1 million by working with a supplier who couldn’t deliver the quality or production needed to meet their needs. That one error was a costly one, prompting leadership to seek out a more rigorous supplier onboarding and performance management solution.
Enter Graphite.
Meet Wenger Manufacturing
Equipment Manufacturing
Based in Kansas
Acquired by global manufacturer Marel in 2017
ERP: Microsoft Dynamics 365
Graphite customer since 2022
The Problem
Wenger Director of Procurement John Hoschouer joined the team in 2019 to transform the procurement operations at the manufacturer.
“Before I came in, it was the Wild Wild West,” Hoschouer said. “Basically anybody that wanted to onboard a supplier just negotiated everything and then asked us to place the PO. That’s how we got into a situation where we had a supplier and we were losing major money.”
Hoschouer put a stop-gap measure in place that he knew they would outgrow soon enough – an 18-page questionnaire in a Word document.
“The most critical project for me was how to build out a supplier selection process,” Hoschouer said. “We needed to make sure that we’re validating these suppliers and we’re partnering with the right suppliers that can carry our brand just like we would and really be an integrated part of us instead of a liability.”
Hoschouer explored several supplier management platforms, but discovered that many were way too expensive for him to build a clear business case around, or weren’t robust enough for the ongoing performance management needs of Wenger.
“Then I met the Graphite team at a conference and what really struck me was that they valued me as an individual and they wanted to hear what my pain points were,” Hoschouer said.
The Solution
After implementing Graphite, Wenger’s average onboarding time went from over 200 days per supplier to an average of 50 days.
“Graphite has put procurement in the center of what’s going on with suppliers,” Hoschouer said. “We now have one source of truth and have put a stop to the duplication of tasks.”
Easy Team Adoption
John has five category managers on his team. When his primary point person on supplier onboarding was ready to be promoted to a new role, he was able to hire a new college grad to take up the mantle.
It took just 2 hours of training for the new employee to get up to speed on the system.
“Every time he meets with the Graphite customer support team, he comes back and he’s just so excited about what he can do with the platform.”
Stronger Supplier Relationships
After strong relationships saved Wenger from running short on steel when other manufacturers faced shortages during COVID, Hoschouer knew that procurement’s value extended way beyond price controls and performance management.
“We’re an industry leader at Wenger, so my customers sometimes need solutions faster than most custom manufacturers can give them,” Hoschouer said. “I’ve got to have strong supplier relationships where I can lean on my suppliers and look for quick resolution.”
This has a direct impact on the way Hoschouer views his work – it’s more about relationships than just transactions.
“Our differentiator at Wenger is our supplier relationships. I want to reward good behavior on my suppliers’ part. Because taking care of them means they take care of us.”