Siemens to trim suppliers

Global - Siemens plans to cut 20% of its global 300,000 suppliers to gain flexibility in procurement, said a top executive.

The move comes after Siemens started organising its procurement activities centrally, Barbara Kux, head of procurement told German newspaper Frankfurter Allgemeine Zeitung.

The cut is expected to reduce complexity and improve flexibility and delivery.

The company also plans to demand lower prices from its suppliers in part because the volumes per order have increased, Kux said.