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Samsung Electronics in Romania. 15-09-2011, Rotterdam. Content. Short introduction to Samsung Electronics Short introduction to Samsung Electronics Logistics Services Samsung in Romania Romania, issues, observations, expectations. Questions / comments.

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15 09 2011 rotterdam

Samsung Electronics

in

Romania

15-09-2011, Rotterdam

slide2

Content

Short introduction to Samsung Electronics

Short introduction to Samsung Electronics Logistics Services

Samsung in Romania

Romania, issues, observations, expectations.

Questions / comments

slide6

Introduction to Samsung Electronics Logistics Services

Samsung Electronics Logistics Services (SELS)

  • Internal 4PL to Samsung Electronics Europe
  • Responsible for all logistics activities within Europe
    • Inland transportation
    • Customs clearances
    • 25 local warehouses
    • 1 European Spare Parts operation
    • 2 centralised warehouses
    • Factory distribution
  • (mainly) asset free
slide7

Samsung in Romania

  • Manufacturing
  • Assembly of LCD computer monitors and Colour TV
  • 3 sites, operated by 3rd party
    • A Korean contract manufacturer for Samsung Electronics
  • Raw materials supplied via Constanta
  • Sales Subsidiary SEROM
  • Sales office for Romania and Bulgaria
  • Constanta used as port of entry for all finished goods for Home Appliances Division
  • Local logistics operations, with WimBosman
  • Factory distribution
  • Supply to all Sales Subsidiaries of Europe and Centralized DC’s
  • Sub contracted to Waberers, LKW Walter, K+N etc.
slide8

Romania; issues, observations and expectations, 1

  • Romania benchmarked:
    • In general, like all listed companies, Samsung needs:
    • Reliability and predictability
    • From a Korean corporate point of view Romania is a European province
    • Romania is not benchmarked against Bulgaria or Slovakia
    • but against all European markets.
      • Constanta Port competes with Hamburg, Le Havre, Rotterdam, Gdansk etc
      • Romania as a gateway competes with “Nederland DistributieLand”
    • In our business tenders we ask the same questions throughout Europe
    • Romania is expected to give same answers as France, UK, Germany
slide9

Romania; issues, observations and expectations, 2

  • Port of Constanta:
    • Samsung recognises opportunities and benefits of Constanta
    • Flows rerouted from Port of Koper to Constanta in 2010 / 2011.
    • Observations and improvement points
    • Cost level for Handling and Inland Distribution is high
      • Compared to other ports of entry in EU
      • Not enough competition among operators
    • Lead times are not reliable enough
    • Current congestion in Koper port can be an opportunity for Constanta
slide10

Romania; issues, observations and expectations, 3

  • Gateway to Europe:
    • High volumes from factory into Europe
    • Cost level per truck considerable higher than Slovakia / Hungary into EU
    • In-balance in outbound and inbound freight
      • Always empty leg to factories for all carriers
      • No local carriers (yet) in Samsung’s portfolio
    • Improvements to infrastructure to reduce lead time
  • VAT
    • Korea officially requested to Romania to make VAT deferment possible
    • Huge impact on financial supply chain when using Romania as EU gateway
      • (importing raw materials and finished goods)
slide11

Romania; issues, observations and expectations, 4

  • Customs:
    • From controlling to cooperation
    • AEO-like methods of working (comparable to Netherlands)
    • Avoid bottlenecks per clearance
    • Lean supply chains are disrupted by unexpected delays.
slide12

Next steps

Questions and Feedback

Thank you

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