Based in Munich, Germany, Siemens is a worldwide electronics giant that employs more than 450,000 people in 190 countries. Committed to innovation, it counts among its staff more than 60,000 researchers and developers, supported by annual R&D investments of US$6.6 billion.
A division of Siemens is Munich based Siemens Networks. This unit includes Siemens Mobile Networks, which provides mobile operators with end to- end solutions and services that address a wide range of network needs—from second generation GSM (2G) narrowband to W-CDMA (3G) broadband.
Business challenge
As a leader in one of the world's most competitive and cost-intensive industries, Siemens Networks is under constant pressure to keep costs down while enhancing service. A proven way to reach these twin goals is with high-quality forecasting. In fact, Accenture research shows that companies committed to high performance are usually the biggest and smartest investors in technology that helps them align supply with demand, and maximize enterprise-wide visibility of forecast data.
Strongly committed to the above goals, Siemens Networks has invested heavily in planning and forecasting tools, and is constantly measuring the value that these applications provide. However, the company recently determined that its traditional approach—combining homegrown, Web-based tools with a best-of-breed demand planning solution—was not producing the functional fit or user acceptance that the organization needed. The core weakness was low forecast accuracy that, in Siemens' builds to- order environment, was causing component-supply problems, delaying deliveries and upsetting customers. Clearly, the company's forecasting technologies and processes needed an overhaul. Accenture was selected to help Siemens Networks achieve high performance through improved planning and forecasting. Figuring most prominently in the choice was the supply chain planning expertise Accenture demonstrated during an initial blueprint phase, and its ability to leverage cost optimized local and remote resources, split evenly between Germany and its Supply Chain Center of Excellence in Barcelona. Another factor was Accenture's Global Delivery Network-large-scale, multi-purpose facilities in diverse locations, complemented by specialized centers such as the Supply Chain Center of Excellence in Barcelona. Use of Accenture Delivery Centers have been shown to reduce service-delivery costs by up to 25 percent, while increasing overall quality and reducing risk.
Accenture has helped Siemens achieve a 50 per cent reduction in non-conformance costs - resulting in savings of US$5 million.
To assist Siemens Networks, Accenture also was able to deploy professionals from its Communications industry group and Global Supply Chain service line, as well as its specialists in SAP's Advanced Planner and Optimizer (APO) and Business Information Warehouse (BW). Well-defined methodologies, captured in Accenture Delivery Methods, helped integrate the combined knowledge and experience of all Accenture professionals to the project.
How Accenture helped
During Phase 1, the two organizations worked together to map current planning and forecasting processes and the technology landscape supporting those processes. This effort resulted in an Accenture-developed "process blueprint" showing how process and technology interrelate; where flaws and disruptions occur; and how downstream and upstream operations are subsequently affected. Also in Phase 1, Accenture and Siemens Networks tested a new approach: streamlined planning and forecasting processes supported by a prototype of SAP's APO with Demand Planning (DP) features. SAP APO DP was designed to help companies excel at predicting demand through the advanced modeling of customer and product requirements.