Procurement Strategies – Siemens

Siemens is one of the greatest information technology company of Germany with its headquarters in Munich. It is considered to be one of the biggest companies of the medical equipment company in the Europe and company is making 12% of revenue from this domain. It has been producing equipment’s for different domains like medical, industry, transportation and energy. The company is operating in more than 190 countries around the world and it has number of sub domain as well. It has got almost 360,000 employees around the world and it has been marked one of the most controversial company in the past. The company has invested 3.925 Euro in its research and development department that is making 5.3% of the revenue. In this paper we will be discussing about the strategic outcomes of the company and how it will be matching with the procurement policies of the organization. This paper is totally concerned with the supply chain and the procurement.

  • Describe strategic organizational outcomes of the chosen Organization, and their linkage to Purchase management.

Every organization or company has to set some of the organizational outcomes that needed to be fulfilled in order to achieve the targets and get the new dimensions by achieving those goals. One of the strategic organization outcome of Siemens is that it will be involved in the production of new products. Talking about the information technology, the improving trend in information technology there is need of new inventions and innovations. The development in information technology is producing new ideas and their implementations in everyday life. The customers are looking for the companies who are innovative in their approach. The IT companies in the world who lack innovation have to face heavy losses in terms of their sales and decrease in the number of customers. On the other hand, those companies who focus on innovation of the products and bringing new technology to the world are always ahead to lead the global market in the information technology. However Siemens has been quite innovative in the production of medical instruments, but it needs to show its existence and importance in the field of IT equipment that are being used by the users in their everyday use as well. On the other hand, the second outcome of the organization is that it aims to expand its products and services in more countries of the world as well. Once the company has its roots and its existence in the global market and different countries of the world, then it will be able to reach maximum number of customers. Siemens is also expanding its supply chain in different parts of the world so that their new and latest products could be enjoyed by most of the customers. If the company does not have its existence in the market, then the customers will not be able to get its hands on the products. Another outcome of the Siemens is to provide the customers with the best of the products and the services. The company is also welcoming the suppliers from all around the world to increase its production line in different domains like in energy and medical instruments.

  • Evaluate how good procurement policies in Siemens aid in achievement of their strategic goals.

As we have just discussed that how the company is focusing in the improvement and betterment of its products and services. The company aims to provide the best products and services in the different parts of the world with innovative ideas and products. As these are the strategic organizational outcomes of the organization, these outcomes cannot be achieved by staying within the limits of the organization and only providing its product range in the specific region or the country of the world. There is need to be globalization for the company and moreover staying focused on what are the requirements and demands of the customers. If the company is not taking the requirements and demands of the customers in consideration, then the company will not be able to achieve its expected outcomes. The company aims to provide the best products and services, so it welcomes the suppliers from all around the world with best quality. The company is open to the companies who are meant to supply the best equipment to the company. Looking at the procurement policy of Siemens, it is eminent that the company is meant to be dealing with only those suppliers who are able to provide the best quality products, which help the company in producing the high quality products to be used by the end user. Moreover the goal of the company to make its appearance in different parts of the world, it is also spearing its supply chain system so that the customers can get the latest products from the market when it is launched by the company.

  • Evaluate the role of supplier relationship in procurement function of Siemens.

The procurement by Siemens needs to be outstanding in order to retain the production of best quality products and services in the market. Siemens has been looking for the suppliers who are dedicated to their work and believe in commitment. There are number of things or requirements that the organization is expecting from their employees. The supplier will be working with the Siemens Supply Chain management, as all the procurement process is the part of the purchasing from the suppliers and making deals with them. Moreover, the company looks for the suppliers who have got sustainable business and are ready to make long term relationship with the company. The quality of the products from the suppliers is one of the most important factor that the company is looking for. The company wants the suppliers to provide them the best quality. The supplier should never compromise over the quality and in time delivery of the products. Another thing that is one of the strategic organizational outcome of Siemens that is innovation in the products, the company is also expecting the same from the suppliers that they will be providing with the innovative products to the company so that they can introduce novelty in the market and attract more and more customers. The suppliers who are good at the following requirements by the company they will be working with the company. If the suppliers will be doing business as required by the company, the company will be making improvements in its procurement and also brining innovative products as well.