Case Study
Location
Global (13 Sites)
Processes
Metallics, Plastics, Advanced Components
Established
1922
Use Case
Enterprise Strategic Sourcing
01
Background
As a global leader in industrial heating technology, Watlow operates at a massive scale. With 13 manufacturing sites worldwide, the organization manages tens of thousands of active part numbers across diverse categories, including metallics and plastics. However, this global footprint came with a significant hurdle: data fragmentation.
02
Challenge
Watlow’s technical data was scattered across disparate legacy systems, including Macpac, Oracle, and various PLM platforms. Decentralized part and supplier data resulted in several challenges within Watlow’s sourcing organization:
RFQ response times stretched up to 45–60 days for typical packages after notice went out, reducing the team’s competitiveness when pursuing new opportunities.
Limited quote coverage delayed revenue, tied up working capital, and contributed to higher direct material costs.
235 ‘unsourceable’ parts were sitting idle because the team lacked the data visibility needed to find the right partners.
Team members spent hours each day on manual, repetitive tasks that could be automated, diverting time from high-value sourcing work.
“We had 235 ‘unsourceable’ parts sitting idle because we simply didn’t have the data visibility to find the right partners.”
Mark Dufrain, Senior Director, Sourcing
03
Solution
Watlow partnered with Paperless Parts to implement the Radar Sourcing Intelligence Platform, a centralized hub that transforms raw technical data into actionable sourcing insights.
AI-Powered Part Classification and Similarity Matching
Using Paperless Parts’ patented geometric engine and AI-powered data extraction, Watlow automated the extraction of material, process, and feature-level data from both 2D and 3D files. The solution now validates and recommends commodity codes and instantly flags errors that previously led to supplier confusion. Similarity Matching also helps Watlow identify related part numbers and part families based on geometric features, specifications, and GD&T callouts so the team can strategically direct spend and unlock material cost reductions.
Intelligent Supplier Recommendations
Radar unifies Watlow’s disparate part catalogs, extracts and standardizes technical data, and highlights whether similar parts have been previously sourced and from which supplier. Consolidating this data gives Watlow new insight into opportunities to optimize spend and create continuity within its supplier base.
Automated RFQ Generation
The platform automatically builds quote packages, complete with auto-generated cover sheets that surface critical details upfront, so suppliers can quickly understand scope, confirm in-house capabilities, and respond with quotes or feedback faster. Integration with SharePoint and automated redaction ensures sensitive data is scrubbed before reaching the supply base.
04
Results
By implementing Paperless Parts, Watlow transitioned from manual data scrubbing to high-velocity strategic sourcing.
80%+ reduction in RFQ time
A strategic sourcing action that would have taken 4–5 weeks of manufacturing engineering and procurement management time to analyze and source was condensed into 2–3 days. Watlow felt Radar delivered 3–4x more time savings than expected.Increased quote coverage
All 235 previously ‘unsourceable’ parts have been categorized and are now ready with potential sources of supply from the existing approved supplier list.Targeted sourcing and part grouping
Wave 1 delivered 35% direct cost savings on parts quoted via Radar by enabling economies of scale and giving the team time to focus on mid-tail spend parts.Supplier experience improved
In a post-deployment poll, 4 out of 5 suppliers reported that Radar-generated RFQ packages made it easier to quote, citing faster access to the right drawings, higher-fidelity cover sheet information, and significantly less time spent organizing package materials.
“I was spending hours manually downloading every single drawing, one at a time. It was a massive waste of time. We would spend hours on non-value-added work that kept us from moving faster.”
Liying Luplow, Project Manager, Global Sourcing
05
Looking Ahead
Wave 2 is currently underway, with early results across 187 additional part numbers pointing to savings potential that significantly exceeds Wave 1, pending final validation of landed costs and tooling impacts. With a single source of truth for all quoted and awarded parts, Watlow is positioned to meet its 2026 business objectives, particularly around operating efficiency and new product introduction.