Supplier Value Management

The supplier registration and qualification process is conducted via our standardized company-wide IT application SCM STAR. As a first step suppliers register, providing all their relevant details, and commit to compliance with our standards and principles for Sustainability in the Supply Chain, as documented in our Code of Conduct . Based on various criteria such as product/service portfolio, they then complete selected qualification modules. These include, for example, Corporate Responsibility Self Assessment (CRSA) or commitments to comply with specific standards in the areas of environmental protection, health management and safety.

After their successful completion, Siemens suppliers receive the status “Ready-for-Business” (R4B) and are permitted to participate in electronic invitations to tender and auctions.

We set high standards for the integration of suppliers into our product or project lifecycle, as we expect our suppliers to deliver according to the same quality standards as our customers expect from us. This includes, for instance, the sustainable avoidance of quality risks and non-conformance costs, the promotion of innovation, and continuous improvement. If you confirm all these requirements, you can be qualified “Ready-to-Order” (R2O). After release of the technical specification by Siemens, you can deliver your product portfolio.

In our selection process, we focus on suppliers whose performance and strategy are in line with our requirements. Accordingly, we evaluate and “segment” our supplier portfolio regularly based on standardized criteria such as collaboration, operational competences, integration, sustainability and business continuity. Depending on the results, suppliers can be classified as “Preferred suppliers” or “Strategic partners”. Together with them, we strive to establish a long-term partnership, and collaborate closely right from the early concept or development phase for new products or project solutions.