The New New Moneymakers
Nearly two years after the dot-com meltdown left many of the flamboyant pure-play supply chain solution providers struggling to stay above water, buttoned-down IBM is still making money selling e-procurement services originally developed for its own...
A few years ago the Power Generation division of global giant Siemens, faced with a looming glut of power-producing capacity in the market, began to emphasize its service business, offering parts and support for existing plants and equipment. Problem was, too many manual processes encumbered the unit's direct materials supply chain. In need of more nimble processes to support the fast-moving service business, the Power Generation division began looking for a solution that could streamline this side of its spend. Finding no suitable solution for addressing direct materials, the division opted to work with Siemens' own Procurement & Logistics Services (SPLS) unit to develop a solution internally. Now, just a few short years later, not only has Siemens developed solutions that address both direct and indirect spend, SPLS also is marketing its solutions to other enterprises, holding out the prospect of additional revenue for the company.
In doing so, Siemens joins a number of other so-called "brick-and-mortar" companies that are reaping the benefits of internally developed supply chain solutions but also offering those solutions to the outside world
