Siemens to centralise supply chain modelling for improved efficiency
As part of its long term strategy to improve efficiencies in the supply chain, Siemens has selected Barloworld Supply Chain Software for supply chain modelling, network design and optimisation.
Siemens has over 500 distribution centres globally and has optimised in the past its supply chain on a regional or national basis. An implementation process will enable Siemens to further optimise planning of the supply chain on a global scale, reducing complexity and cost and improving service.
Barloworld Supply Chain Software will implement its CAST software for Siemens Industry globally; a powerful desktop based application to evaluate and identify different supply chain strategies, leading to cost savings and service improvements.
Karl-Heinz Butz, Head of Network Development (Global Warehouse Network) explains, “The Siemens supply chain is multi-layered and complex. Following a discovery project last year, we took the decision to invest in a system which would help us to simplify our supply chain, carry out feasibility checks and model new parts of the network we were proposing.
“We believe that CAST will enable us to harmonise our processes by centralising the design of our supply chain and providing us with a roadmap to reduce cost and improve our service.”
Ewan French, Chief Operating Officer at Barloworld Supply Chain Software, adds, “The ability for Siemens to model its supply chain centrally will offer the opportunity to simplify what is an extremely complex network – and in doing so reduce cost. Businesses using CAST typically achieve a 10-15% saving on their supply chain costs through the application of network optimisation.”
During the selection process CAST software was considered alongside a number of competitor products.
The feasibility study after the initial CAST project began in January 2010. This is a part of a long term optimisation run until 2014.
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