Just as Siemens Dematic completes one transition, the company is starting still others says its new CEO and president of the managing board, Johann Löttner.

To begin, Siemens Dematic AG has completed the consolidation of Mannesmann Dematic AG and Siemens Production and Logistics Systems Group. That merger occurred in May 2001.

An important next step, says Löttner, a veteran of Siemens and Mannesmann, is to take the world's largest materials handling systems supplier and expand it beyond its hardware base to become more of a software-based company. "We need to provide more offerings on the information side of supply chain management," he said at a recent press briefing. And while Siemens Dematic plans to keep research and development expenditures at 5% of revenues, Löttner says the company will focus on partnering rather than internal development to achieve that goal.

Just before Löttner came on board earlier this summer, Prashant Ranade was named president and CEO of Siemens Dematic Material Handling Automation in the Americas. Pete Metros, who previously held that position, is now focused on his duties as a member of the Siemens Dematic board. Ranade, a veteran of Siemens, has an extensive background in industrial automation.

He, too, underscored the importance of information tools and the removal of non-value-added activity from the supply chain. "Siemens Dematic will take tools like RFID (radio frequency identification) and integrate them into an overall system to deliver performance," Ranade said. "We're committed to providing solutions across the entire supply chain that keep costs down and improve quality," he added.