Proactive supply chain shortening in mechanical engineering – greater proximity, less risk

Global supply chains in plant and mechanical engineering have been under pressure for years: geopolitical tensions, long transport routes, complex customs structures, and volatile freight rates make planning difficult.

At Siemens Energy, too, the highly international supplier network led to long lead times, high hedging inventories, and limited flexibility in development and series projects. The goal was to permanently improve delivery capability through shorter production and transport times, tax-neutral procurement, and direct communication channels —without compromising quality.

Zilken took charge of the strategic and operational realignment of selected supply chains in the OEM segment.

The focus was on proactively shortening of the supply chain and the establishment of a European manufacturing cluster that combines speed, transparency, and technological proximity.

• Analysis of existing supply chains and identification of critical components.
• Establishment of a European supplier portfolio (Germany, Czechia, Poland, Italy, Turkey).
• Technical qualification, auditing, and approval of new manufacturers according to Siemens Energy standards.
• Introduction of shortened logistics chains and direct communication structures between engineering, purchasing, and manufacturing.
• Implementation of tax-neutral procurement processes within the EU with consolidated invoice runs.

The new manufacturer portfolio enabled key components to be manufactured in Europe and delivered just-in-time. Average delivery times were reduced by up to 50%, while costs remained stable and response times improved.

Direct, time zone-free communication between specialist departments and producers proved to be a significant productivity gain, particularly in prototype construction and for short-term requirements.

Siemens Energy now benefits from a more resilient, tax-neutral, and sustainable procurement structure—with clearly measurable effects on project lead times and planning reliability.