Circular Transformation of Industries The Art of Scaling Circular Supply Chains 2025

Supply chain design choices Siemens supply chain configuration FIGURE 14 Asset condition evaluationAsset operation and managementRedeployment to customersMaintenance and upgrade/retrofittingRefurbishment and certified requalification In-house Outsourced Key step to get rightRecycling Siemens has reconfigured its supply chain to support circularity, combining insourced capabilities with a network of partners to transform the traditional “take-make-waste” model into a closed- loop system. For MV switchgears, Siemens’ Service Corner in India has standardized 80% of designs; with a modularization concept, retrofits are available for over 200 designs, delivered as kits worldwide. Insourced capabilities: Dedicated customer service teams, along with engineering, vacuum and air circuit breaker manufacturing, and digital diagnostics teams, provide essential retrofit services. Partnerships: Reverse logistics retrieves legacy panels and hazardous materials, which are harvested, tested and reintegrated into operations. For LV switchgears, Siemens has a network of authorized service centres that are essential players in circularity. Outsourcing these processes enables Siemens to harness partners’ specialized skills and tools. For sulphur hexafluoride (SF6) handling of MV switchgears, Siemens works with qualified partners who enforce rigorous safety protocols, ensure personnel are trained and manage safe transport. Siemens ensures active development of partner ecosystems to facilitate continuous improvement and customer-centric delivery in line with its commitment to sustainability and service quality. Operational capabilities and incentivization To support customers at every step, Siemens conducts site reliability assessments to identify panels that have reached the end of life – even when customers do not maintain a database. Quality assurance checks are carried out to ensure that switchgears are fit for use. Each panel is tested according to IEC certification standards, and warranties are issued where appropriate to provide transparency on the condition assessment.Key enablers Siemens actively collaborates with customers to demonstrate how retrofits can enable system upgrades with the latest technologies. For example, during retrofitting, IoT sensors are integrated to provide real-time visibility and safety alarms and support modern predictive maintenance practices. Advanced technologies such as 3D scanning and QR-coded digital twins have also enhanced retrofit delivery by enabling precision fit-ups. Internally, Siemens established a defined governance framework and cross-functional collaboration model to manage the life cycle of retrofitted assets. A cultural shift – from a replacement mindset to a retrofit-first philosophy – has been pivotal in driving adoption. To further support customers, Siemens offers tools such as an impact calculator, abatement certificates and financing options. Impact Customers can achieve total cost savings of 40-50%, including increased uptime and energy efficiency compared to old switchgear. Sustainability gains are significant: Lifespan extension and material savings reduce material use by up to 70% and emissions by up to 75% compared to new panel installation. Customers also avoid reliance on restricted chemicals and mineral oil supplies. Retrofit services enhance operational resilience: Greater service agility means the lead time from delivery to on-site installation is 1-3 days (compared to 1-4 weeks for new switchgear), resulting in less downtime and more production time. Customers also benefit from up to 70% reduced dependency and volatility on global parts. Furthermore, retrofitting creates a future-proof asset, extending equipment lifetime by 10-15 years. Circular Transformation of Industries 29