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Remote Project Stock Management

           Can we do more with less? YES BT CAN.




                                   Customer Site      WH full-time staff     WH part-time staff    WH no staff     Potential Pre-Fab

           Premise: Implementation of “remote stocking” of solutions project material will deliver a higher service level with lower overall costs,
           but must be paired with improved material logistics planning to divert more shipments directly to job site or subcontractors.



                             Approximately 75% of shipments go to                                                                         Ship higher percentage (>50%) direct to job
                             branch warehouse as a staging area pending                                                                   to avoid BT warehouse.
                             final dispatch to job site.                                                                                       Shipments that need to be stored by BT can
                                                                                                                                               be directed to a full-staffed warehouse
        Approximately 25% of shipments go direct to                                                                                            nearby awaiting final dispatch instructions.
        a job site or go to a subcontractor                             
        warehouse before going to the job site.                                                                                                     Fewer warehouse are needed, which reduces
                                                                                                                                                    staffing requirements and other roles having
                                                                                                                                                      to spend time handling material.
       All branches do not have full-time
       warehouse staff, which causes                                                                                                                        The warehouses remaining can have
       others roles to fill the gaps or causes                                                                                                            multiple staff, which means higher
       “material confusion”.                                                                                                                              service level – capacity, working
                                                                                                                                                            hours, backup, value add services
                                                                                                                                                            (kitting, deliveries)
            PM and other project resources often                                                                                     
            deliver material to site, or                                                                                                       Warehouse footprint is smaller – easier to
            subcontractors pick up material from                                                                                                 manager and less costly.
            branch warehouse – Time is money!
                                                                                              Pre-Fabrication (panel shops)             Process discipline will have to increase –
                                                                                              could be co-located at larger             allowing for potential outsource of the
                                                                                              facilities to maximize synergies.         warehouse 3PL.
           Confidential© Siemens AG 2017
           Page 17             08/07/2017                                       Names are for example only                                                            Siemens Industry, Inc.
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