Siemens’ Motion Control Business Unit: Building Integrated Demand Planning Capability

Our solution included a common planning hierarchy, streamlined planning process and common planning tool to increase supply chain flexibility and enhance competitiveness. This resulted in increased delivery capability and reliability, and reduced total order lead time and net working capital, enabling the client to rapidly respond to changing customer demands and market opportunities.

Facing increasing competition and rising customer expectations, Siemens’ Motion Control business unit (Siemens I DT MC) sought to improve delivery capability and reliability, reduce lead times and increase flexibility.

The economic downturn of 2008 also made it difficult to source components and Siemens needed to improve the accuracy of its product inventory to provide precise sourcing demands for its suppliers. To achieve these objectives, Siemens I DT MC decided to redesign its demand planning capability and select an appropriate demand planning tool.

Working together, Siemens I DT MC and Accenture:

• Identified the key areas for improvement based on an as-is-analysis of the current planning processes and information flows.

• Developed a common planning hierarchy across seven product levels, including approximately 2,500 components.

• Designed the future demand planning process that generates the demand plan for all 12 plants worldwide.

• Determined the key performance indicators (KPIs) to steer the process.

• Developed the organization design, including roles and responsibilities.

After evaluating various state-of-the-art planning tools, Accenture recommended SAP Advanced Planner and Optimizer for supporting the new demand planning process.

The enhanced demand planning capability facilitates better communication between the demand planning organization at Siemens I DT MC’s headquarters and its manufacturing plants across the globe. This strengthens the client’s market position through:

• Increased delivery capability and efficiencies

• Increased delivery reliability

• Decreased total order lead time

• Reduced net working capital

• Improved customer service via enhanced supply chain capability and reliability

Siemens I DT MC now benefits from an aligned and harmonized demand planning process and a streamlined planning organization that enables increased supply chain flexibility and enhanced competitiveness. With Accenture’s help, Siemens I DT MC has developed more dynamic and high-performing supply chain and service operations capabilities that help it respond rapidly to the changing customer demands and market opportunities.