The challenge
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.
Our services
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 solution
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.
Figures (benefits/KPIs)
Results at a glance
- Delivery time reduction: –35 to –50%
- Proportion of European manufacturing: > 70%
- Communication time: –60% through direct manufacturer contacts
- Cost neutrality: elimination of customs and freight costs
- Time to market: significantly reduced for prototypes and small series
Best practice – why this approach works
- Shorter supply chains, greater stability: European manufacturing reduces the risks and dependencies of global supply chains.
- Direct collaboration with manufacturers: No language or time zone barriers, faster decision-making.
- Tax-neutral EU procurement: Eliminating import and customs clearance procedures reduces transaction costs.
- Sustainable scalability: The European network is modular and expandable, serving as the foundation for future OEM programs.
