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Infrastructure & Cities Sector, Rail Systems DivisionPage 1 March 2012 © Siemens AG 2012 Chapter without image © Siemens AG 2012 International Supply Chains:

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Presentation on theme: "Infrastructure & Cities Sector, Rail Systems DivisionPage 1 March 2012 © Siemens AG 2012 Chapter without image © Siemens AG 2012 International Supply Chains:"— Presentation transcript:

1 Infrastructure & Cities Sector, Rail Systems DivisionPage 1 March 2012 © Siemens AG 2012 Chapter without image © Siemens AG 2012 International Supply Chains: Challenges, Opportunities and Partnerships 28 March 2012 Andrew Lister Head of Procurement & Materials

2 Infrastructure & Cities Sector, Rail Systems DivisionPage 2 March 2012 © Siemens AG 2012 Contents Siemens Overview The Siemens UK Rolling Stock Maintenance Portfolio Challenges Opportunities Partnerships Summary

3 Infrastructure & Cities Sector, Rail Systems DivisionPage 3 March 2012 © Siemens AG 2012 Infrastructure & Cities Energy Fossil Power Generation Renewable Energy Oil & Gas Service Cross-sector activities Siemens Financial Services Healthcare Imaging & IT Clinical Products Workflow & Solutions Building Technologies Osram Low and Medium Voltage Industry Automation Drive Technologies Customer Services Smart Grid Mobility and Logistics Rail Systems Metal Technologies Diagnostics Siemens – global Sectors

4 Infrastructure & Cities Sector, Rail Systems DivisionPage 4 March 2012 © Siemens AG 2012 Locomotives and Components High Speed and Commuter Rail Metro, Coaches and Light Rail Customer Services and Transportation Solutions Rail Systems High speed and intercity trains Commuter and regional trains Components Refurbishment Metro rail cars Passenger coaches Tramcars and light rail cars AGT rail cars Components Refurbishment Electric and diesel-electric locomotives Propulsion and control components Bogies for metros, tramcars, high speed trains, and locomotives Electrical equipment and traction systems for rail cars Refurbishment Maintenance of rolling stock and infrastructure Spare parts service Test and validation center Repair center Consulting and system design System engineering, project and interface management Siemens – Rail Systems

5 Twelve Fleets, Eight Operators 16x4 car Class 333 EMU (AC) Maintenance – Leeds Staffing – 22 Contract – Maintenance, 35 years Metronet Central Line Contract 1420 Bogies to modify 67x4 car Desiro EMU (AC) Maintenance – Northampton/Crewe Staffing – 70 Contract – Full Service, 20 years 51x3 car Class 185 Desiro DMU Maintenance – Manchester/York Staffing – 130 Contract – Full Service, 8 years 14x4/5 car Class 332 EMU (AC) 5x5 car Class 360 Desiro EMU (AC) Maintenance – Old Oak Common Staffing – 42 Contract – Full Service, 19 (2) years 127x4 car Class 450 Desiro EMU DC 45x5 car Class 444 Desiro EMU (DC) Maintenance – Northam / S'Hill Staffing – 200 Contract – Full Service, 20 years 21x4 car Class 360 Desiro EMU AC Maintenance – Ilford Staffing – 25 Contract – Maintenance, 7 years Eurostar Trains and Service 10 x e320 Velaro High Speed TSSSA – 10 Years and Depot Modifications Maintenance Facilities 16x4 car Class 380 EMU (AC) 22x3 car Class 380 EMU (AC) Maintenance – Shields, Glasgow Contract – TSSSA, 10 years

6 Infrastructure & Cities Sector, Rail Systems DivisionPage 6 March 2012 © Siemens AG 2012 Scope of supply Full service Contracts Safety and Integrity Planned and Corrective Maintenance Overhauls (at train or component level) Obsolescence Development and Innovations Major Repairs Cleaning

7 Infrastructure & Cities Sector, Rail Systems DivisionPage 7 March 2012 © Siemens AG 2012 Over 350 trains in service travelling over 50 million miles per annum Rail Systems has a commuter fleet of some of the most reliable trains in the UK

8 Infrastructure & Cities Sector, Rail Systems DivisionPage 8 March 2012 © Siemens AG 2012 New EMU ReFocus Reliability Figures

9 Infrastructure & Cities Sector, Rail Systems DivisionPage 9 March 2012 © Siemens AG 2012 New DMU ReFocus Reliability Figures

10 Infrastructure & Cities Sector, Rail Systems DivisionPage 10 March 2012 © Siemens AG 2012 Challenges - Scale 1508 vehicles in service 50 million miles of operation annually 650 staff 10 depots (six built by Siemens) 1 million materials transactions annually Every major owner and operator has Siemens trains

11 Infrastructure & Cities Sector, Rail Systems DivisionPage 11 March 2012 © Siemens AG 2012 Challenges Manufacturing locations – Our trains are made in Germany and Austria Technical (design) expertise is often in Germany Language – Siemens business language is English Often technical specs and contracts are in German Suppliers – Relatively small pool of potential suppliers Technically complex and safety critical Often (historically) selected to suit requirements of train build not the aftermarket

12 Infrastructure & Cities Sector, Rail Systems DivisionPage 12 March 2012 © Siemens AG 2012 Challenges Supplier (558) locations – Fiscal year2012 (P's 1-5) Country of SupplierEUR Australia9, Austria16, Bahrain16, Belgium5, Czech Republic Denmark150, Finland15, France242, Germany916, Hungary2, Ireland25, Italy20, Netherlands Spain48, Switzerland3,365, United Kingdom37,030, Total41,868,142.39

13 Infrastructure & Cities Sector, Rail Systems DivisionPage 13 March 2012 © Siemens AG 2012 Challenges Demanding customers and penalties for non–performance - Our trains run 364 days/year We commit to making trains available to meet the timetables Maintenance activity is carried out outside of peak hours Massive variation in terms of the fleets One DMU fleet – all rest EMUs Different suppliers and technologies on our trains

14 Infrastructure & Cities Sector, Rail Systems DivisionPage 14 March 2012 © Siemens AG 2012 Opportunities Size of our installed base gives us a critical mass 1508 vehicles and growing Long term contracts Our maintenance contracts last for between 2 years and 35 years! Over £1bn in order backlog based on existing fleets alone Real growth prospects – opportunity to double in size Eurostar vehicles in manufacture (160 off) Additional Cl 350 vehicles for TPE/London Midland (80 vehicles) Preferred bidder on Thameslink (1140 vehicles) CrossRail ITT recently issued (Siemens one of pre-qualified suppliers)

15 Infrastructure & Cities Sector, Rail Systems DivisionPage 15 March 2012 © Siemens AG 2012 Partnerships We tend to avoid using the term Partnerships We focus on working together with our customers, suppliers and employees to delivery mutually beneficial long term benefits…… Two key elements of collaboration First aspect is internal collaboration Second aspect is how we collaborate with our suppliers Communication is key to both…….

16 Infrastructure & Cities Sector, Rail Systems DivisionPage 16 March 2012 © Siemens AG 2012 We want to collaborate with our suppliers to provide the best materials and services to enable our trains to be the most reliable and have best availability. Today is all about networking and improving communication.

17 Infrastructure & Cities Sector, Rail Systems DivisionPage 17 March 2012 © Siemens AG 2012 Procurement Update United Kingdom Procurement Update Germany & Global Procurement collaboration in Rail Systems Procurement for maintenance and services Best suppliers for Siemens Internal collaboration Act together for growth

18 Infrastructure & Cities Sector, Rail Systems DivisionPage 18 March 2012 © Siemens AG 2012 Organize communities of knowledge & experience exchange on specific procurement topics Foster (cross-)regional pooling activities Utilize transparency on global preferred supplier base & contract content International procurement networkCollaboration between UK and Germany Example: Eurostar 2 Project Procurement Managers for maintenance installed on both sides of the channel Exchange of maintenance related procurement issues (e.g. life cycle cost, contracts, overhaul) Joint interface to procurement activities during build phase Overlook all material issues of the vehicle since vehicle is in plant (contracts, Annex SA,…) Same approach would apply for all future projects >500 Mio PVO is managed in RLs procurement regions HQ REG Procurement collaboration in Siemens Rail Systems

19 Infrastructure & Cities Sector, Rail Systems DivisionPage 19 March 2012 © Siemens AG 2012 Maintenance and services for Rail Systems / Integration of build and maintenance projects Maintenance and service aspects are key elements for sourcing decisions, e.g. LCC Warranty and repair & overhaul support Engineering / production capacity ToCo installed OverviewKey aspects More of a focus on the aftermarket in sourcing decisions UK and Germany are in close communication on key sourcing decision for both Eurostar and Thameslink From an aftermarket perspective, we want to encourage the use of suppliers with a UK support network Procurement for maintenance and services Major focus within Rail Systems

20 Infrastructure & Cities Sector, Rail Systems DivisionPage 20 March 2012 © Siemens AG 2012 Supplier day RL UK holds an annual supplier days for its key strategic suppliers Approx. 40 suppliers in attendance Involves a cross-functional approach Focus is on sharing information and improving collaboration and communication International collaboration

21 Infrastructure & Cities Sector, Rail Systems DivisionPage 21 March 2012 © Siemens AG 2012 A Better Way of Working Welcome…………….

22 Infrastructure & Cities Sector, Rail Systems DivisionPage 22 March 2012 © Siemens AG 2012 Output / value add Development of a portfolio of best-in-class suppliers Continuous improvement of our supply chain performance Focus on ToCo-installed Transparency on performance in build and aftermarket projects FPL Supplier Portfolio 0,98 1,0 1,08 1,04 Supplier Qualification Awarding process Supplier Classification Factor Supplier Award Supplier Audit crossfunctional Material Strategies Supplier Development UK 2012 Consistent approach to supplier management

23 Infrastructure & Cities Sector, Rail Systems DivisionPage 23 March 2012 © Siemens AG 2012 Siemens has exciting prospects and great opportunities We also have demanding customers and challenging competitors We want to engage with our suppliers such that together we can gain a real advantage over our competition and delight our customers We want to be number one together across all aspects of our working relationship – technical innovation, lowest total cost, comunication, reliability and availabily..... We want you to be part of our future success Closure & outlook

24 Infrastructure & Cities Sector, Rail Systems DivisionPage 24 March 2012 © Siemens AG 2012 Andrew Lister Head of Procurement & Materials UK Siemens plc Infrastructure & Cities Sector Rail Systems Division United Kingdom Q&A


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