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Samsung Spare parts RFQ presentation

Samsung Spare parts RFQ presentation. Schenker Australia –Daniel Han. 6th. April 2010. Contents. I. Company Introduction. Company Introduction – DB Schenker Why DB Schenker?. II. Schenker Solution. Infrastructure – SYD Warehouse Operation and Process Review Inbound Management

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Samsung Spare parts RFQ presentation

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  1. Samsung Spare parts RFQ presentation Schenker Australia –Daniel Han 6th. April 2010 ,

  2. Contents I Company Introduction • Company Introduction – DB Schenker • Why DB Schenker? II Schenker Solution • Infrastructure – SYD Warehouse • Operation and Process Review • Inbound Management • Warehouse Management • Transport Management • IT Management • Account Management III Summary

  3. Company Introduction – Who is DB Schenker? DB Schenker in Numbers

  4. Company Introduction – DB Schenker ANZ As Part of the DB Schenker group, DB Schenker Australia & New Zealand was founded in 1962 and has a staff total of more than 1100 people with a total warehousing space of 126,719 sqm -Very Well Positioned In All Business Units Founded: 1962 Staff total:1,100 Facilities total:16 W/H total: 135,469 SQM

  5. Samsung Business History in Schenker ~ 2000 • Samsung Logitech partner 3 • 15 SamsungAccount Rev. Number of Koreans 2001 • CE Div. 1C1B Nomination • 20 3 2002 • SEPHIL / SEIL Implementation (IM/EX/DO/WH) • SEAU Implementation (IM/EX/DO/WH) • 35 2003 • Semiconductor Div.1C1B Nomination • SET Implementation • 45 5 2004 • SESL / SESS Implementation • SEHK / SSS/ SAPL Implementation • 52 9 2005 • SEHZ Air Export Partner • Samsung LCD RMA Center • GPCA Distribution Partner • 65 2006 • Dongguan HDD 1C1B Nomination • SME Implementation 15 • 57 2007 • TSTC Air Export Partner • TSE/SDMA/SEIN Air Freight Partner • 73 20 2008 • SEV Freight Partner • EEDC Land Transportation Partner • 112 2009 • Rail Transportation for LCD to Europe • G ERP Implementation for 13 sites 22 • 106 M EUR

  6. Semiconductor 1C1B Partner • LCD 1C1B Partner • SSS • SET • SAPL • SME • SSI • SSEG • SESS • SESL • SEC • Business Overview • Global Air Freight Partner • SEC • TSTC • TSED • SEHZ • SESC • SAE (HDD OEM) • SEIN • SEPHIL • SEV • IPC • SMD • SDIC • Air Freight Operation • Mobile – TSTC, SEHZ, SEV & SEC • LCD – SESL, SEC • Semiconductor - SESS • OMS – SEPHIL, SEIN, SAE & SEC • Note PC – SESC • Others – Digital Imaging, SMD, DSEM & IPC • Ocean & Multimodal Freight Operation • SEC (LCD and others) – Export & Import • SESL (Rail) – Export to Europe • Logistics & Domestic trucking • SEAU 6DC operation & Distribution • SIN, SHA, SZV & SZX for Semicon/LCD hub • SEPHIL VMI Hub • SSI / SSEG ChinaHub • SESL /SESS Domestic trucking • Reverse Logistics in Malaysia & Australia • SEPOL Trucking from EEDC • GPCA distribution in US • SEA RHQ 1C1B Partner • SEPHIL • SEIN • SEAU

  7. Samsung Account Management team in Schenker • Executive Sponsor • Steve Dearnley • Corporate Account Director • Alex Choi • US • APAC • GAM • YK Lee (SEL) • SCAM • TBA (SIN, Apr) • ROM • Kit Kim (HKG) • ROM • Kate Sohn (SIN) • IT • Brad Poh (SIN) • GAM • J. Jang (LAX) China Korea Australia Vietnam • EU • Head • Jake Chung (SHA) • Head • Tony Park • KAM • Daniel Han • KAM • David Choi • GAM • N. Yoon (BTS) • HKG • John Kim • KAM • Harry Shin • KAM • TBA (May) • TSN • TY Kim Singapore • Ops. Mgr • TBA (BTS, May) • KAM • Helena Susanto • HKG • Jan Yip • CS • Alan Park • SHA • BS Kang Philippines • Ops. Mgr • Nurettin (STR) • KAM • TK Park Indonesia • SZX • Kris Hyun • SHA • Hunter Gwon Japan • Head • James Kim • KAM • Shiono Takeshi • Ops Mgr. • Patrick Jun

  8. Freight forwarding Air Freight Ocean Freight Customs Brokerage Cartage Service Warehousing Inventory Management Daily Cycle Count National Distribution Outbound Transportation Home Delivery Same Day Delivery Reverse Logistics Call Centre - Customer Call Out De-Grading inspection IT Services Project Management KPI Reporting Samsung Australia / Schenker Partnership – 2010 • Success through Partnership since 2002

  9. I Company Introduction • Company Introduction – DB Schenker • Company Introduction – Schenker ANZ II Schenker Solution • Infrastructure – SYD Warehouse • Operation and Process Review • Inbound Management • Warehouse Management • Transport Management • IT Management • Account Management III Summary

  10. 1. Infrastructure – Glendenning Warehouse Current Warehouse – Glendenning Warehouse • 11 Lamb St Glendenning NSW 2761 • Building Constructed in 2007 • SEAU Spare parts moved in Nov, 2007 • Total W/H space : 6,000 sqm • Current Usage : 3,300 SQM 9 ,

  11. Return • Staging • Receiving • Dispatch • WH Office • Admin 1. Infrastructure – Glendenning Warehouse Current Warehouse – Glendenning Warehouse Paul Hartman • Operation Stars from Nov 08 • Total Area of Warehouse : 5,500 SQM • Samsung Usage : 1,950 ~ 3,300 • Schenker leased Multi Client Warehouse • Storage Capacity • Small Bin : 1,500 Bins • Medium Bin : 8,000 Bins • Large Bin : 3,000 Bins • Pallet Location : 1,800 Pallets • Monthly Statistics (SEAU Products Only) • Dispatch DO : 450 ~ 700 DO per day • # of Sku : 37,000 registered 22,000 Inventory exist 6,700 Moved in last 3 month Stage 3 – 800 SQM Overflow Location Stage 1 – 1,950 SQM • Small/Medium Bin Location • 6 story pallet racking Stage 2 – 550 SQM 6 story pallet racking

  12. 1. Infrastructure – Warehouse Planning SYD Samsung Spare parts Warehouse Stage 1. Glendenning Warehouse • Location : Glendenning (Current Warehouse) • Space Available : 3,300 SQM Stage 2 Option 1. Yennora Warehouse Location : Yennora (Current F/G Warehouse) Potential Size : 2,500 SQM Benefits : Synergy with F/G Operation & Flexibility on growth Option 2. New Schenker Multi User site • Location : Yennora – Fairfield • Potential Size : 12,000SQM • Benefits : Flexibility on growth

  13. I Company Introduction • Company Introduction – DB Schenker • Company Introduction – Schenker ANZ II Schenker Solution • Infrastructure – SYD Warehouse • Operation and Process Review • Inbound Management • Warehouse Management • Transport Management • IT Management • Account Management III Summary

  14. 2. Operation and Process , 13

  15. 2. Operation and Process , 14

  16. 2. Operation and Process – Inbound Management DB SCHENKER Freight Forwarding service – Your Total Solution • Globalisation has made oclean supply chains much longer and more complicated. • With a risk of delays and “handover points”, more and more companies need someone to “Manage-the-Supply Chain Process”. • DB Schenker is proud to provide our total solution for your global supply chain. Total N to N solution from Schenker One Stop service station Schenker Freight Products

  17. 2. Operation and Process – Inbound Management Purchase Order Management SEAU to raise the purchase order - Weekly Purchase order to each vendor by SEAU SAP PO raised PO data Entry to System Stage 1. To be uploaded to system manually Stage 2. File Updates Benefits : End to End visibility to SEAU - Currently No Visibility in SAP PO Details to PO Mgmt System PO data in System visible to Origin - Allow Origin Schenker to monitor incoming shipment from Factory Benefits : Pre-plan for shipment – No delays due to unexpected volume – Cargo Plan for peak season Visibility to Origin/SEAU , 16

  18. PO Management System – PO Maintenance Provides information on all raised Purchase Orders

  19. Purchase Order Management – Line Level

  20. 2. Operation and Process – Inbound Management Individual Packing @ Origin With low labour cost at Origin, Schenker is considering the perform all the individual packing operation at Origin level Freight EXW @ Origin Individual Packing @ Origin Inbound Coordinator Inbound Coordinator will share the volume information to plan the most efficient operation resource Inbound Planning On Time G/R KPI Mgmt Inbound Coordinator will manage the Ocean : D+3 / Air : D+2 NEW WMS Solution WMS System will classify the products into A/B/C class and instruct worker to a putaway location Port to W/H Delivery Inbound packaging Separate KPI for Warehouse inbound Warehouse to G/R : 2 days , Air : D+0 Individual Packing Put Away , 19

  21. 2. Operation and Process , 20

  22. 2. Operation and Process – Warehouse Management Commitment from Schenker Australia Our solution to Samsung Electronics will provide world class warehousing and Inventory management This can be achieved by leveraging the existing operations and industry experience of Schenker in Australia Samsung Electronics would be able to enjoy a service with the following key features: • Best of class warehouse solution using world class technology in a FIFO model • Secure, efficient facilities • A nationwide network of managed distribution facilities of standardise process • Integration to retail – Existing relationship • Industry experienced staff • Robust controls & processes • Scale able resources

  23. 2. Operation and Process – Warehouse Management Volume Analysis Qty Picked from Location * All Analysis based on Oct, Nov, Dec 09 dispatch data

  24. 2. Operation and Process – Warehouse Management ABC Velocity Analysis 80 % of volume @ 16.4% of SKU * All Analysis based on Oct, Nov, Dec 09 dispatch data ,

  25. 2. Operation and Process – Warehouse Management Storage Solution – Inventory Slotting : Right Products @ Right Place

  26. 2. Operation and Process – Warehouse Management Warehouse Management: Consolidation Phase 1. Consolidation per SKU Class - Racking Current Analysis Time Line : May –June 10 Benefits : Improvement on Picking Efficiency Cost Reduction : 1.2 FTE ,

  27. 2. Operation and Process – Warehouse Management Warehouse Management: Binning Utilisation Phase 2. Dual Slotting for existing Binning As Is Vertical Split To Be Horizontal Split Time Line : July – August 10 Benefits : Increase of Binning Location : 48% additional Utilsation Current : 8,000 Medium Binning To be : 16,000 Medium Binning (Vertical + Horizontal separation) ,

  28. 2. Operation and Process – Warehouse Management Warehouse Management: Outbound Process review DO received FIFO ( First In, First Out) Schenekr WMS will ensure all products to be allocated to order based on FIFO logics Stock Allocation RF Scan Pick Scan pick of goods in Location/SKU and Pick slip guarantee the exact product pick Picking Pick and Pack – DO Consolidation New Schenker WMS will consolidate all the delivery order with Same address/Customer details in to 1 consignment : Cost reduction on minimum/base charge Quality Assurance Process Staged products for dispatch will be going through Schenker’s QA check procedure before it gets loaded to truck Dispatch

  29. 2. Operation and Process – Warehouse Management Operation Capacity Improvement – Conveyor Line • To minimize the working area, Schenker recommend new Conveyor system – Production line type • It will provide SEAU/Schenker • Less Space consumption with improved operation efficiency. • Capacity improvement – No O/T • Detail Time study shows improvement on Space Utilisation and Cost reduction. - $200K Potential Reduction

  30. 2. Operation and Process – Warehouse Management Operation Capacity Improvement – Narrow Aisle System • Re-locate all of the parts currently located in, very small, small and large Binning into a Narrow Aisle Shelving System Risks • Output limited by maximum picking capability of picking machine(s) • Cost implications by requirements for specialised item of handling equipment [Narrow Aisle Stock picker Machine(s)] Benefits • Consolidation of picking activities into a more confined area. • Reduction in total footprint • OH&S benefit as pickers are segregated from other Mechanical Handling Equipment operations. • Improvement in pick efficiency as picking is mechanically assisted • Possible 15 – 35% increase in productivity • Output limited by maximum picking capability of picking machine(s) • Cost implications by requirements for specialised item of handling equipment ,

  31. 2. Operation and Process , 30

  32. 2. Operation and Process – Transport Management Transport Structure – Combined Service Provider • Schenker has made a Strategic Partnership with STE for Samsung Spare parts Benefits of having STE in Samsung Spare parts will be • Knowledge of current business requirement • More reliable and robust hand scanner devices • Innovative software • Sign-on-screen functionality for real-time capture • Full receiver’s name and proof of delivery • Automated real-time quality control Scope of Service Express Road Freight Over night delivery into adjacent Capital cities nationally. Extensive company owned linehaul. Same day air freight Next flight to major capital cities and regional areas where flight service available and or direct car/ courier connections Star Track Express is the only airfreight consolidator with the backing of Qantas and Australia Post, and as part of this unique strategic partnership, Service level of Priority Air Services also expected to improve. Prepaid satchels or Pay as you use satchels Convenient for small items requiring overnight service, available in 1kg,3kg and 5kg weight denominations

  33. 2. Operation and Process – Transport Management Operation Capacity Improvement – IOD/POD Management Dispatched Lead Time management KPI Analysis team in AUS will manage the performance of Schenker and Regional Carrier System Visibility Through Schenker Web Portal, Schenker will provide the step by step visibility to Samsung including RRDD Transit IOD Collection Through newly connected TMS and Carrier system, Schenker will provide all electronic scan copy of POD - Live Data IOD/POD Collection POD Visibility Through Schenker Web Portal, Schenker will provide all electronic scan copy of POD , 32

  34. 2. Operation and Process – Transport Management Operation Capacity Improvement – NBD before 10 am delivery Is NBD before 10am impossible? • Delivery before 10am is possible in only CBD area dna it needs to be in Express service • Currently Samsung have an overnight service which in the main provides delivery before lunch the following day. • In order to get a guaranteed delivery before 1000 the next day, earlier collections, as in 3-4pm, need to be arranged and an express delivery rate negotiated. Express rates are generally a minimum 1.5 times the general rate, in effect at least 50% more than the current rates. What time do the PUD trucks leave the depot ?. • PUD vehicles leave various depots at various times. Most companies have their early morning express PUD's out delivering before 0800, which in most cases allows for delivery before 1000. Then the second sweep of vehicles go out with the general freight, approximately 900-1000 am for delivery before 1pm. Where are their first delivery points and what time do they deliver to those areas ? • First delivery points for the general PUD vehicle is a variable as it depends on what freight the driver has for his area. Not all Customers send to the same destinations on a daily basis. Generally the starting point is the closest to the entry point of the area and a further variable then is where the driver starts his collections for return to the depot. ,

  35. 2. Operation and Process – Outbound Management Return Management – Process Improvement Area of Improvement All Manual Process without any system support. SEAU/Schenker already start to change Spare parts return process by introducing GRMS RA approval Fast responses to Service agents Efficient way of controlling returns / better 3PL control Introduction of RA number KPI driven processes Credit Requests via Fax or Email W/H team’s assessment on C/R Notification to ASC Not Accepted Accepted Consignment Registration/Data Entry and Posting SEAU approved EP requests? Not Approved Notification to ASC ASC receives con- note and returns goods Approved W/H inspection / G-ERP EP creation W/H to process (label/put away/etc) End

  36. 2. Operation and Process , 35

  37. 2. Operation and Process – IT Management Current IT Structure : Samsung – Schenker Interface Diagram Benefits • Cost Effective Model Existing Schenker AU WMS/TMS and leased line infrastructure for new system catering 2. Readiness Samsung's (GERP) system platform already implemented 3. Contingency Management Multiple EDI connection between Schenker and Samsung , 36

  38. 2. Operation and Process – IT Management IT Structure : new WMS and TMS Solution Warehouse Management System (WMS) Transport Management System (TMS) Schenker will operate its multi-client Warehouse Management System which can operates in real time through a RF network and in turn the customer via EDI data transmission. Brief benefits of Multi Client WMS from Schenker is • Designed and built with the purpose of having a single data base structure, in which clients can be easily implemented onto in a short period of time • Multiple facility capabilities • Rapid deployment and implementation • Web based GUI front end • Minimal cost to implement and operate • DO Consolidation to customer • Schenker will use Translogix as it Transport Management System, which also is utilised in Australia ,

  39. 2. Operation and Process – IT Management IT Structure : Supporting team for Samsung IT PMO Megan Lyall IT Business Apps Ravi Kesariraman IT GM John Jessen Applications Management Claudio Nieto Support Manager YantoJahja Dell IT Account Management Robert Marshal Lead Developer Vu Lam IT LOG Support Dean Cornish

  40. 2. Operation and Process , 39

  41. 2. Operation and Process – Account Management Account Management Structure : Supporting team for Samsung Samsung Account Management Team CEO Business Analyst Program Manager - FG Program Manager - SSP GM Major Accounts

  42. Contents I Company Introduction • Company Introduction – DB Schenker • Why DB Schenker? II Schenker Solution • Infrastructure – SYD Warehouse • Operation and Process Review • Inbound Management • Warehouse Management • Transport Management • IT Management • Account Management III Summary

  43. 3. Summary DB Schenker: Committed to becoming a leading transport and logistics provider for Samsung

  44. 3. Summary Why DB Schenker : Premium Provider of Integrated Forwarding & Logistics Key Strengths • Operation of worldwide, self-controlled and flexible networks • Industry-specific expertise (Hi-Tech, Retail/FMCG) • Strong brand in international logistics • Worldwide door-to-door solutions • One-stop shop logistics solutions • Long Term Relationship with Samsung • Provide tailor-made solution for Samsung ,

  45. Thank you

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