Siemens Introduces Global Procurement Service

NORWALK, Conn., Feb. 23 /PRNewswire/ -- Siemens IT Solutions and Services, Inc. is introducing an enhanced service for companies looking to improve the efficiency and effectiveness of the complex procurement process.  The Siemens Global Procurement Services (GPS) is designed to help companies more efficiently manage their procurement operations by leveraging Siemens' multi-billion dollar global indirect spending budget and broad industrial expertise.  The Company has among its clients one of the world's largest entertainment companies and is aggressively building the GPS practice.

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The introduction of the new service continues the Siemens IT Solutions and Services focus on integrating the company into the fabric of the Siemens corporate structure by combining forces in global procurement.  Siemens, with more than $10 billion in indirect spend, is one of the world's largest purchasers of materials and services and Siemens IT Solutions and Services is leveraging that expertise on behalf of a growing new customer base.  The service is particularly attractive to clients looking to find additional efficiencies in their procurement efforts.

"The demand for innovative and flexible solutions that deliver cost savings through better prices and process efficiencies is increasing," said Bill McNamara, Head of Strategy at Siemens. "The recent economic downturn forced companies around the world to look carefully at ways to improve their purchasing efficiencies.  Many were able to achieve notable improvements by enhancing the management of their main areas of expenditures.  But for those goods and services that are less systematic, utilizing a company like Siemens can help drive even more costs out of their overhead.  Our initial focus is to help companies manage those one-off transactions that they don't execute on a regular basis."

One example of Siemens's procurement prowess is the success a global automotive manufacturer achieved through their procurement partnership with Siemens.  While this company was effectively managing its major procurement categories, its miscellaneous procurement expenditures were either being managed less efficiently or not at all.  They had no frame agreements for these purchasing categories and little insight or transparency into their spending in these areas or their associated processes.

The company turned to Siemens to manage non-standardized or occasional orders under $7,000.  Using Siemens' extensive procurement experience and experts in their SpotBuy® procurement center, Siemens was able to reduce the company's material costs by more than 8 percent, on some $34 million of annual purchasing volume.  Siemens' expertise allowed the automotive manufacturer to re-allocate resources into more pressing needs, optimize their purchasing processes, improve transparency throughout their procurement systems, and dramatically shrink their supplier base from 5,000 individual vendors to a single system supplier -- Siemens.

"Our service augments existing staff and technology to find savings that would otherwise be left unmanaged," said McNamara.  "Such an approach is a low risk/high reward proposition for our customers, especially in today's economic climate.  It requires no upfront investment from the customer and holds the potential to realize considerable savings in areas of purchasing that are not core to a company's mission.  Even if a company is tightly managing its core purchasing areas, there remain millions of dollars in potential savings using our Global Procurement Service."

The Siemens Global Procurement Services offering is highly modular, allowing companies to utilize as much or as little of the service as necessary.  Its expertise ranges across major purchasing categories -- from office supplies to cleaning services to heavy equipment sales and leasing -- and around the world -- with Global Procurement Offices in almost every time zone.  Siemens also provides strategic procurement consulting and technology assessment services for companies looking to drive further efficiencies in their procurement operations.  Siemens procurement consulting has achieved results ranging from 15-40 percent cost savings for its clients.

About Siemens IT Solutions and Services

Siemens IT Solutions and Services is an internationally leading provider of IT solutions and services. It covers the entire IT service chain from a single source, from consulting to system integration, right through to the management of IT infrastructures. In addition, Siemens IT Solutions and Services complements the portfolio offerings of the Siemens Sectors with IT solutions. With its comprehensive know-how and industry-specific knowledge, the IT provider creates measurable added value for its customers. Siemens IT Solutions and Services employs more than 35,000 people and posts annual sales of about $6.3 billion, of which over 75 percent are generated outside of the Siemens Sectors. More information at:  www.usa.siemens.com/it-solutions.

SOURCE Siemens It Solutions and Services, Inc.