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Supplier Convention Days

Experience immediatecost impact with ourelaborate Supplier

Days

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Supplier Convention DaysDelivering immediate impact on cost and innovation

Our approachUtilizing our proven Supplier Convention Days methodology focusing on costreduction and Design to Cost opportunities by enabling short-term negotiationresults and optimizing the supplier base.

The impactRealization of short-term contribution to net income (=savings!) by well preparednegotiations including clear agenda, management attention and defined roles.Additional savings through cross-functional involvement resulting in more than 94identified Design to Cost measures.

The challengeThe economic decline was hitting a Siemens business unit / segment significantly.Procurement had little experience in negotiating prices and the cooperationbetween Procurement and Engineering was limited. Therefore, they requiredsupport in designing and executing professional Supplier Conventions Days.

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A modular concept covers a variety of targets

• Official welcome, presidential address• "Pain speech"• Ideas for improvement

"Conventionalnegotiations"

Parallelnegotiations

ANCs¹)

(eBiddings/eAuctions)

Design tocost-workshops

Cao-workshops

Jointcreativityworkshop

Supplier fair

PVC 2) -negotiations

GVS 3) - orlocalization-workshops

Supplier eva-luation anddevelopmentworkshop

Siemens fair(introductionof BUs)

Suppliercompanypresentations

• Joint summary of measures• Lessons learned and development of future strategy• Roadmap for implementation incl. tracking

Managementspeeches

Possiblemodules(selected)

Continuousfollow-up

• Clear communication of expectations• Information and appreciation• Management attention and support

• Individual or common workshops (depending on target)• Cross-functional teams, where required• "One Company": Aligned strategies, one face to the supplier

• Outcome of workshops: Signed agreements• Internal follow-up strongly required• Future strategy based on past experiences

1) ANC = Advanced Negotiation Concept, 2) PVC = Price Variation Clause, 3) GVS = Global Value Sourcing

Supplier Convention – Set-up configuration

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Our proven standard process ensures success

Supplier Convention – Approach

01Concept Analysis Event Design Event Execution Final analysisand conclusions

• Define detailed objectives,scope, timeline, approach,location and responsibilities

• Conduct cross-functionalkick-off meeting

• Select and analyze existingsuppliers and/or challengers

• Organize event• Prepare and send invitation

letter to selected suppliers• Collect and evaluate

supplier feedback

• Conduct analysis of:• Demand• Price development,

cost drivers• Contract situation• Market• Technologies and

competencesof suppliers

• Status supplier evaluation• Strategic aspects

• Identify potentiallevers per supplier

• Define individual materialfield targets

• Cross-functional strategyworkshop to tailor eventdesign

• Define and train Siemensstaff and roles

• Set scene and message bysenior mgmt. speeches toexpress strategic importance

• Formulate over-all eventstrategy focusing on fastaction and limited time fordecision making

• Start the event withan introduction andoverview of course

• Present speeches• Break out participants

into groups accordingto event design

• Strict time mgmt. and assurethe agreed upon eventdesign is followed

• Tracking of individualwork sessions result

• Result presentation andagreement

• Analyze and evaluateachieved results and mapto initial objectives

• Derive measuresto close potential gaps

• Document and presentresults to senior mgmt.

• Formal communicationto participants

Objectives, participants,timeline and locationof the event are defined

Supplier dossiers arecomplete and leversfor negotiation identified(if applicable)

Event ready for execution:• Strategy formulated• Roles trained

Event completed accordingto design; measures and duedates agreed

Event resultsanalyzed/evaluatedand communicated

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