15 09 2011 rotterdam
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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

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15 09 2011 rotterdam

Samsung Electronics

in

Romania

15-09-2011, Rotterdam


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


15 09 2011 rotterdam

Introduction to Samsung Electronics


15 09 2011 rotterdam

Introduction to Samsung Electronics


15 09 2011 rotterdam

Introduction to Samsung Electronics, continued

Samsung is a market leader:


15 09 2011 rotterdam

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


15 09 2011 rotterdam

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.


15 09 2011 rotterdam

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


15 09 2011 rotterdam

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


15 09 2011 rotterdam

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)


15 09 2011 rotterdam

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.


15 09 2011 rotterdam

Next steps

Questions and Feedback

Thank you


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