samsung electronics in romania samsung electronics in romania 15-09-2011, rotterdam
TRANSCRIPT
Samsung Electronics
in
Romania
Samsung Electronics
in
Romania
15-09-2011, Rotterdam
Content
2/8
Short introduction to Samsung Electronics
Short introduction to Samsung Electronics Logistics Services
Samsung in Romania
Romania, issues, observations, expectations.
Questions / comments
Introduction to Samsung Electronics
3/8
Introduction to Samsung Electronics
4/8
Introduction to Samsung Electronics, continued
5/8
Samsung is a market leader:
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
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 Wim Bosman
Factory distribution Supply to all Sales Subsidiaries of Europe and Centralized DC’s
Sub contracted to Waberers, LKW Walter, K+N etc.
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
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
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)
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.
Next steps
Questions and Feedback
Thank you