Through the intelligent use of an AI solution in purchasing, VEMAG has significantly reduced direct procurement costs, identified potential savings, and optimized process costs. For the project "From Data to Savings: VEMAG Raises Purchasing Potential with AI," the manufacturer of food processing machinery was presented with the Procurement Excellence Award (SME) on November 12, 2025. The award was presented by the German Association of Materials Management, Purchasing and Logistics (BME) as part of the 60th "Purchasing and Logistics" symposium.

Digitalization at the heart of the realignment

VEMAG's purchasing department is organized by material group and managed by a team of 16 people who oversee a portfolio of over 60,000 active parts. Prior to the implementation of the digitalization strategy, procurement was primarily regional, and large purchasing volumes were managed individually. The focus was primarily on operational processes.

Company growth, increasing international competition and rising demands for efficiency and transparency ultimately required a comprehensive realignment in 2023 with the aim of making procurement not only more digital, but also more strategic, scalable and resilient.

AI as a lever for innovation

The key innovation is the self-learning AI that enhances the existing ERP system by analyzing orders and invoices in real time. The AI automatically recognizes potential savings and proactively notifies the relevant purchasers. A self-monitoring model filters relevant deviations and improves continuously through feedback from the purchasing department, thereby reducing false alarms and increasing ROI. Recognized patterns and recommendations for action are valuable:

• Bundling: Frequent individual orders are combined into larger quantities to take advantage of price benefits
• Discount potential: Growing purchase quantities without price reductions indicate room for negotiation
• Price review: Unchanged prices despite market fluctuations should be renegotiated or put out to tender
• Price increases: Creeping surcharges are made visible cumulatively
• Price differences: Different prices for identical items are recognized and standardized
• Process optimization: Several orders with the same delivery time are merged to increase efficiency
• Error detection: Unexpected price jumps trigger a check
• Supplier mix: cost-unfavorable distributions between suppliers are identified and can be corrected

A central element of the project was involving employees early on, even during the development and testing phases of new software features. This approach not only optimized the software, but also ensured a high degree of identification with the new systems.

Significant cost savings and process optimization

In the first two years of operation, direct procurement costs in the mid six-figure range were saved. Additionally, operational expenditures in purchasing have significantly decreased, as manual data searches are no longer necessary. Thanks to AI, the preparation of individual negotiations has also become much more efficient, with time savings of around 80%. AI reduces process costs by bundling orders, thereby combining booking, checking, and logistics processes. Process costs are saved with every small order avoided, adding up to a five-figure sum.

The company's sustainability goals will also benefit from the realignment. In environmental terms, bundling small orders reduces not only purchase prices but also transportation and packaging costs. Initial projections show that eliminating unnecessary delivery trips for the standard and built-in parts product groups alone will save around 2.0 tons of CO₂ per year.

"With this sub-project, we have taken a decisive step toward achieving our overall "Purchasing 2027" strategy. Our goal is to make procurement more digital, strategic, scalable, and resilient. This award confirms that we are on the right track and that our investments in modern technologies and consistent realignment of purchasing are paying off," says Florian Greulich, Head of Purchasing at VEMAG Maschinenbau GmbH.

"We are proud to provide the entire company with real added value through forward-thinking digital solutions in purchasing. The success of this project demonstrates the powerful combination of technology and teamwork, particularly in change management. Thanks to the active involvement and commitment of our procurement team, an idea became sustainable progress," says Steen Bösche, Project Manager Digital Transformation, VEMAG Maschinenbau GmbH.

About the "Procurement Excellence Award"

Since 2022, the BME has honored companies that excel in procurement, logistics, and supply chain management with the Procurement Excellence Award. Large companies and SMEs are considered separately. The winning team represents the best procurement practices in its sector and is a pioneer in sustainable procurement solutions.

Through the award-winning project, the team permanently increased the efficiency of purchasing, logistics, and the supply chain, significantly improving the company's results. Additionally, far-reaching changes were initiated to implement new strategies, structures, systems, processes, and behaviors, ideally with employee involvement.

Image: wolterfotos/BME e.V.

To the publication of the Bundesverband Materialwirtschaft, Einkauf und Logistik e.V. (BME)