Siemens 2009 Annual Report Download - page 62

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Barbara Kux, Member of
Siemens’ Managing Board
Barbara Kux: A company like Siemens, which has activities in some 190 countries,
has substantial savings potential in the area of procurement. Our goal is to identify
and realize that potential. But we can’t just intensify cost pressure on our suppliers.
We have to focus on the entire supplier-to-customer value chain. The Managing
Board has adopted what it calls a 60-25-20 approach. This means: 60 percent of our
total procurement volume will be centrally pooled by 2010, the proportion of goods
that we purchase in emerging countries will rise from 20 to 25 percent in the medi-
um term, and we’ll reduce the number of our suppliers by 20 percent in the medi-
um term. In all three areas, we’ve made solid progress.
Barbara Kux: Since I joined the Managing Board in November 2008, my team and
I have conducted over 2,000 talks and negotiations with suppliers. We’ve also de-
fined key measures to further optimize procurement. Our primary aim has been to
develop a joint approach that will enable us to remain competitive and profitable
through realized cost savings and cost reductions. But this isn’t an us-versus-them
process. We want to grow hand-in-hand with our suppliers. We also want to im-
prove our products and solutions even further and get our offerings to the market
faster and more economically. It’s only through cooperation that we’ll be able to
reach these goals and make a major contribution to Siemens’ further sustainable
development.
SIEMENS ANNUAL REPORT: Ms. Kux,
you’re responsible for supply chain man-
agement (SCM) at Siemens and, thus, for
procurement outlays of about €40 billion.
On joining the Managing Board, you
announced that you wanted to further
optimize our SCM activities worldwide.
What did you mean by that and what
concrete steps are you taking?
“Solid progress” – what exactly does that
mean?
Barbara Kux is the first woman to serve on Siemens’ Managing Board. Appointed
in November , she’s responsible for supply chain management, the market-
ing of our Environmental Portfolio and – as Chief Sustainability Officer – all our
sustainability-related activities. In an interview for the Siemens Annual Report,
Ms. Kux talks about her goals and the opportunities for growth that green tech-
nologies are providing for Siemens.
Supply chain management and
sustainability – A world of opportunity
 Introduction  Our world 36 Our company
52 Our understanding of sustainability 54 Driving sustainable business 58 Our contribution to
sustainable urban development