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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
                           and segments                orders per                                                                                 Pre-fab
                             BOM per                   installation                     3. Value-Add Warehouse
                            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.)


           Confidential© Siemens AG 2017        PLO = Project Logistics Operation (a new position)
           Page 15             08/07/2017                                       Names are for example only                                                            Siemens Industry, Inc.
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