The aim of Supply Chain Management is to optimize the value added chain at Siemens globally in a coordinated manner on the

basis of standardized processes. Apart from contributing value to operating results through savings in procurement, this also includes quality assurance as well as guaranteeing delivery reliability and dependable, efficient logistics. All this is tightly intermeshed with the Siemens objective of sustainability. Until 2009, Supply Chain Management throughout the Group was organized almost exclusively vertically within the three sectors. When the SCM initiative was launched in April 2009, the idea was to leverage synergy potentials of the company as a whole more effectively. The objective is to achieve sustained optimization over the long term. Among other things this includes building close partnerships with suppliers, particularly in growth markets. The aim here is to establish good cooperation relationships that deliver lasting value to both parties. The selection process plays a vital role in this. Siemens is looking not just for the best suppliers, but also for those suppliers most closely living up to Siemens own objective of sustainability.

Working Worldwide for Procurement

As a global enterprise, Siemens also purchases globally. Currently our purchasing units (on the corporate level only) purchase goods and services of more than 130 material fields. Siemens procurement is organized as a network in order to take full advantage of its savings. These savings can be realized by taking up a joint, centrally coordinated approach within what basically remains a decentralized organization.

ORGANIZATIONAL STRUCTURE
ORGANIZATION OF THE SUPPLY CHAIN MANAGEMENT CORPORATE FUNCTION

As a cross-sectional function, the Supply Chain Management (SCM) organization mirrors the structure of Siemens as a whole. Accordingly, Supply Chain Management is made up of corporate departments as well as of functions in the managerial sectors and in the Regions.

M ANAGEMENT

To highlight the importance of Supply Chain Management, but also to ensure SCM processes are optimized across the enterprise, Siemens has created a separate seat on the Managing Board specifically for this purpose. The SCM board reports directly to the Managing Board member responsible, Barbara Kux. The board is structured into the functions financial controlling, procurement of direct and indirect materials, strategy and programs, and global value sourcing. Also part of the picture are the responsible Chief Procurement Officers (CPOs) in the sectors and at SIS. In line with the aim of optimizing supply chain management across the entire enterprise based on integrated quality, logistics and manufacturing processes, pooled bargaining power and a focused supplier base, the SCM board has technical managerial authority in all of the companys SCM functions.

H EAD OF SCM B ARBARA K UX

Having acquired her expertise and experience over many years in important positions in supply chain and sustainability management at a number of global enterprises, Barbara Kux joined Siemens in 2009, launching the SCM initiative in April 2009. She heads the Corporate Supply Chain Management (CSCM) function and, wearing her second hat as Chief Sustainability Officer, is responsible for ensuring that Siemens technology portfolio provides innovative solutions for a sustainable worldwide infrastructure, e.g. for greater energy efficiency, more effective environmental protection and better medical provision.

A strong local presence simplifies access to rapidly growing markets. This presence includes a solid purchasing network in addition to our own local value added operation. Our goal is to become an inherent part of the local economy.