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Shirish Kulkarni,
CEO
S S Controls
E 15/27, MIDC,
Chikalthana, Aurangabad 431210,
India November 22nd, 2009
Siemens Energy Transmission HP & HS hereby invite you to a Supplier Day on Dec. 16th, 2009.
The global downturn of the economy is causing the ongoing reduction of order entries worldwide.
Siemens is not only facing a highly increased cost pressure from its competitors, but in addition,
our customers are asking for price reductions in products and running projects. To get hold of this
critical situation Siemens has already started internal cost reduction programs, which were suc-
cessful but not sufficient to offer competitive market pricing. Therefore we are continuously
investigating our supply chain for cost reduction opportunities.
At the same time, new opportunities from the developments on the raw material markets arose in
2009, resulting from tremendous price drops. This overall economic change continues to impose new
challenges on the whole supply chain. Your company belongs to our preferred suppliers with whom
we are interested in sharing a long-term and successful business partnership. Therefore we ask you
for your suggestions to realize quick cost reduction opportunities in order to secure our future busi-
ness together, achieve “win-win” situations and make sure you will remain part of our supplier pool
in 2010 – and we are looking forward to welcoming you to our Aurangabad Works for this Supplier
Day as per the schedule attached.
We would be pleased if we could achieve our strategic goals for the purposes of solidifying an
intensive and long-term partnership even in these difficult times. Therefore, please understand this
procedure and reply by sending back the appendices on short notice. We hope that we will be
able to master this demanding challenge together and thank you for your support in advance!
With much regards,
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Supplier Day schedule:
Date: December 16th, 2009
Time: 8:30 am – 12:30 pm
Location: Siemens Ltd. Energy Sector Power Transmission Division
E-76 Waluj MIDC Area,
Aurangabad Works
Aurangabad 431136
On this day, you will receive a brief introduction explaining the Siemens business situation globally,
followed by discussions in separate workshops to discuss price and cost reduction opportunities.
Supplier Day Objectives:
• To agree on short-term reduction of costs as a sign of cooperation and performance.
• To identify and work out measures for medium- and long-term reductions of the material and
processing costs.
• To lay the groundwork for further intensive business relations.
As preparation for the Supplier Day please provide the following information to us:
1. Enter name of the participants on return fax (appendix 1: min. 1 person, max. 3 persons).
Please make sure these are persons able to make important, binding decisions and
agreements and return the form by November 25th, 2009.
2. Please enter your cost reduction ideas as well as your offer for immediate price reduction on
the measure sheet (appendix 2). Please use a separate sheet for each measure. Please send
this back to us by November 30th, 2009.
3. Please prepare your cost structure which will include the raw material content as well as the
raw material base. Please return this by November 30th, 2009.
To simplify the communication process, we have established a central contact point for the Supplier
Day. Your contact person will be:
Please understand that we need the above requested information in order to allow our Supply Chain
specialists to prepare for the Supplier Day to make it a success for all of us.
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Appendix 1
Participation Confirmation, Supplier Day
December 16th, 2009
To:
Mr. Sadhan C Roy
Siemens Ltd. Energy Sector Power Transmission Division
Fax: +91 (0240) 2554007
Email: sadhan.roy@siemens.com
1. ____________________________________________________________________
2. ____________________________________________________________________
3. ____________________________________________________________________
____________________________
(Signature)
Fax/E-Mail: Please return by November 25th, 2009
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Appendix 2 (Please copy this sheet, Use one sheet for each suggestion)
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Appendix 3 (Sheet 1 of 2) Checklist Measures Sheet (Examples!)
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Appendix 3 (Sheet 2 of 2) Checklist Measures Sheet (Examples!)
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