Siemens Clicks with Click2procure

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Siemens Clicks with Click2procure

• Nicole Soybakisli
• April 28, 2008

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Siemens Overview

• Siemens is a German electrical engineering and
  electronics giant
• It has approximately 475,000 employees in 190
  countries
• Sales of over 87 billion (euro) in fiscal 2006
• Siemens is a leading manufacturer of automation
  and control systems, communications, lighting,
  medical, semi-conductors, power, and
  transportation products and services.

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Click2procure

• Click2procure is one of the worlds largest
  private buy-side Net marketplaces.
• It is using technology provided by Commerce One
  and SAP
• It has about 9,000 registered suppliers
• It provides a private, Web-based platform for
  standardizing and automating purchasing
  activities
• It also provides sourcing, procurement, and
  supply chain management services to outside
  firms.

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Siemens Click2procure

• Click2procure is used today by 35,000 Siemens
  employees
• Siemens purchases over 45 billion (euro) a year
  in direct and indirect goods.
• As of January 2007, Click2procure has handled
  over 4 billion (euro) in purchasing volume for
  Siemens
• Suppliers have created almost 170 electronic
  catalogs within the system
• About 80,000 transactions are processed per
  month, and average savings in process costs range
  from 30 - 60

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Siemens Prior to Click2procure

• Each of Siemens business units around the globe
  did its own purchasing and followed its own
  rules.
• Siemens could not aggregate orders across all
  business units to obtain better prices.
• 50,000 indirect purchases per month cost about
  100 each to process
• There was no central review of the prices paid
  for products.

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Siemens Centralize Control

• Siemens wanted to build a solution with the
  following five characteristics
• Global reach
• Effective catalog management
• Web-based search engine
• Rules-based and approval tracking
• Integration with legacy systems

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Integration of Click2procure

• Siemens opted for Commerce Ones package Net
  Market Maker Solution.
• CommerceOne.net provided catalog management and
  transaction processing capabilities.
• Using CommerceOnes packaged solution allowed
  Siemens to develop its own private
  Click2procure version in only four months.
• Siemens Global Procurement and Logistics is now
  the general contractor of the Click2procure
  service.

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Siemens Benefits

• 10 reduction in prices paid for goods
• 75 reduction in administrative costs, bringing
  purchase order cost down to 25
• 60 reduction in ordering life cycles, from over
  eight days down to 48 hours
• Significant reduction in accounts payable staff
  now that bills are paid on time
• Enhanced inventory and asset utilization
• Improved demand planning and forecasting

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• Q A