Tariff Mitigation & Supplier Reset
Siemens Healthineers
Achieved major cost and tariff reductions while completing transfer, reducing lead-time.
Challenge
Supplier unwilling to provide critical cost reductions.
Manufacturing footprint in China exposed to tariff volatility and competitive risk (2020).
Actions
Launched global RFQ evaluating costs, tariffs, logistics, capital, and risk.
Applied structured total-cost comparison to assess alternatives.
Strategically engaged with the incumbent supplier.
Incumbent supplier led transfer of production from China to Mexico, with minimal effort required from Siemens Healthineers.
Results
Achieved major cost and tariff reductions from incumbent supplier.
Completed transfer with reduced risk and minimal disruption.
Reset supplier relationship and performance expectations.
Significantly reduced lead-time and capital in transit to system assembly site.