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Future of Project Logistics – Planning Material Deliveries







                                                                                 Standard Delivery Options




          Installation      Schedule drives material logistics                          1. Direct to Job Site (JIT)
           Schedule                                                                   Greatly reduces overall shipping and handling,
                                                                                      requires more logistics planning/coordination.

           PM sets
         installation                                  Logistics
          schedule.

                             B.O.M.                                                     2. Drop-ship to Subcon
                                                                                      Shipping to subcontractors (installers or
                                                       Planning                       manufacturers) reduces shipping and
                                                                                      handling steps for Siemens.
                           ENG defines
                              material              PLO plans and
                           requirements              tracks material                                                                              Pre-fab
                                                       orders per
                           and segments                installation                     3. Value-Add Warehouse
                             BOM per
                            installation            schedule using                    Involves more shipping and                                Warehouse
                             schedule.                 available
                                                     logistics data                   handling, but allows Siemens to
                                                     and concepts.                    perform various value adding steps
                                                                                      (kitting, pre-fab, testing, etc.)


           Restricted © Siemens AG 2017         PLO = Project Logistics Operation (a new position)
           Page 23             08/07/2017                                       Names are for example only                                                            Siemens Industry, Inc.
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