BASF IT Services optimises service provider process at Merck KGaA

08-Jan-2004

BASF IT services have installed a new IT system to boost site maintenance for Merck KGaA in Darmstadt. The system is based on an IT-supported standard service provider process and handles assignments from external companies. As well as providing the necessary equipment, BASF IT Services has also developed and fitted the software, including interfaces to enable data to be exchanged with the company's central SAP system. It is expected that the system will go online this summer. Merck employees some 8000 employees at its site in Darmstadt, which manufactures products for the pharmaceutical, laboratory and specialised chemical engineering branches.

General agreement instead of individual assignments

For the maintenance of the locations in Darmstadt and Gernsheim, Merck deals with 36 general agreements for companies working in the building, industrial construction, electrical, measuring and control engineering, as well as heating, air conditioning and sanitation sectors. Instead of continuing with individual assignments, Merck would like to work with these trading sectors, using a fixed service provider process. As a prerequisite, Merck will sign a general agreement, which is based on standard services. The price will be calculated on the annual volume of business expected, however, the services can be called upon as required. This has several advantages, i.e. the individual assignments will be safer because the basic requirements are clearer. Also, because the orders are bundled, this usually means a more favourable price for Merck, than with individual assignments.

Merck consequently saves time and money. Their business partners work for a predetermined fixed price and if required, can be commissioned quicker and easier with just the push of a button. Merck can also generate the invoice per PC. Over a length of time, a valuable database is created, where all activities can be compared with each other. The suppliers can profit from this process because they also gather data, which is then used as the basis for their calculations and offers. The general agreement also offers legal security. As you know, those who order more must also pay more and need not negotiate any further.

"In order to streamline our service provider processes with the contractors, we searched for an experienced partner, which we have found in BASF IT Services", said project manager, Falk Schröder, from Merck KGaA. "BASF IT Services has already proved with BASF, that the process functions", said Manfred Fischer, who is responsible for the project within BASF IT Services. BASF has used this process for the last eight years and, as a consequence, has been able to reduce their maintenance costs in some cases by a fifth. Principally, BASF sells their offer of standard services to other companies.

"The customer Merck profits from one of our core competencies, which is Technical Asset Management", explained Uwe Krakau, Director of BASF IT Services and responsible for their Sales & Marketing.

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