Article: Strategic purchasing cuts costs 25% at Siemens.(Siemens Medical Systems Inc.)(Company Profile)

Siemens Medical Systems Rx: supplier leverage and buyer/supplier involvement in design.

If Siemens Medical Systems' (SMS) purchasing organization had a slogan, it might be "You've come a long way, baby."

That's because three years ago, purchasing at Siemens Medical Systems was strictly a local affair. Buyers at Siemens' ultrasound, electromedical, computer tomography, magnetic resonance imaging and angiography divisions were virtually on their own. They bought the components and material that their individual plants needed and rarely communicated with each other. Suppliers and purchasers were generally not involved in new product development.

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