The development of global economic integration makes it impossible for companies like SIEMENS to produce all the parts and components they need in their own companies or locally. Therefore, selecting and managing suppliers scattered all over the world is the key to ensuring quality and credibility for large multinational companies.

Suppliers working with SIEMENS can greatly enhance their value. If you can establish long-term business contacts with SIEMENS, it is very beneficial for this supplier, because what kind of company you cooperate with can reflect the level of a supplier. Therefore, SIEMENS has very high requirements on the quality of procurement, and also very high requirements on suppliers.

Supplier management is the foundation of the entire supply system management. The supply system is composed of raw material suppliers, manufacturers, distributors, and end users. Each link is not only a user of the previous link, but also a supplier of the next link. All links of the supply system constitute all suppliers in a broad sense. Alliance, work together to defeat the real competitor-other supply system alliances, instead of competing with each other within the supply system and consuming internal forces.

SIEMENS clearly puts forward the slogan "Your success is our success, our success is your success" in its supplier management strategy, which combines the traditional enterprise with The short-term, loose, and mutually competitor relationship between suppliers has been transformed into a long-term, close, and mutually cooperative partnership. SIEMENS considers its relationship with suppliers at the height of its business strategy for practical reasons: the procurement cost of raw materials and parts, including the demand for services, has exceeded 50% of the company’s annual sales revenue, and this trend of rising costs It is still going on. If you do not take timely measures to reduce costs and improve quality, you will not be invincible in the competition. Therefore, SIEMENS puts forward that the goal of supplier management is to form a strategic partnership with all suppliers to jointly "be competitive in the Chinese market."

SIEMENS's supplier management strategy includes four aspects: management objectives, supplier selection, supplier evaluation and supplier development. The entire strategy is in-depth, with clear goals and strong operability.

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