1. 在台國際採購處與大陸台商的供應關係 主講人 : 林賢榮 / 國際採購處 總經理
在台國際採購處與大陸台商的供應關係 主講人 : 林賢榮 / 國際採購處 總經理
The Supply Relation-ship
in between
IPO Taiwan & Taiwanese Supplier in China
By : Paul Lin / General Manager
Philips IPO Taiwan

2. Contents P I / Philips & IPO in Taiwan
P II / Global IPOs Activities in Taiwan
P III / IPO & Supplier’s Relationship
P IV / New Era with New Concept

3. An introduction on Philips
November 2001

4. Royal Philips Electronics
Global electronics company, established in 1891 as a lamp factory
Multinational
workforce
of 219,400
employees
Headquarters:
Amsterdam
The Netherlands
Sales and
service
in 150 countries
Shares listed on New York, London, Amsterdam and other stock exchanges
Results 2000
in millions EUR USD
Sales 37, ,864
Net income 9, ,842

5. Technology Leadership Areas
Display
• Consumer TV
• One-Chip TV
• LG.Philips
• Light Engines
• 3D medical
imaging
Storage
• Audio/DVD
• Optical Storage modules
• Consumer ICs
Digital Video
• TV/DVD
• Set-top boxes
• TriMedia /
Nexperia
• RF tuners
Connectivity
• Wireless
handsets
• Set-top boxes
• Bluetooth ICs

6. Philips Product Division
Board of Management
Lighting
Consumer Electronics
Domestic Appliances & Personal Care
Components
Semiconductors
Medical Systems

7. Philips Purchasing Organization/Corp. Purchasing
Board of Management
Management
C.P.
Secretary
NPR Progr. Mgt.
E-Proc. Programme Mgt. & IS Dev.
Purchasing Process Dev.
Leveraged Purchasing Mgt. & Support incl. IPO’s
Controller
HRM Development
Training
Product Division Purchasing Centers
Direct Responsibilities
Functional Responsibilities

8. I nternational P urchasing O ffice Paul Lin
27FB, No. 66, Chung Hsiao W. Rd., Sec. 1
Taipei, Taiwan
Tel:
Fax: /45
WebSite :

9. Philips Taiwan Locations
Tayuan Lighting
Taipei Head Office :
The Central Services &
The Domestic Business
Headquarters
Chungli Monitors
Dapon Color Monitor Tubes
Chupei Glass
TSMC
2001 Budget
Personnel 7,816
Total Assets NTD B
Sales NTD 238.7B
Kaohsiung Semiconductors
Philips Organizations
Joint Venture
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10. 資本與技術密集型 Capital/Technology Intensive
產業轉型過程 Changing Pattern of Philips in Taiwan's Business
勞力密集型 Labor Intensive
資本與技術密集型 Capital/Technology Intensive
腦力與知識密集型 Intelligence/Knowledge Intensive
角色轉型 Changing Role of Philips in Taiwan
海外代工
Off-shore Assy Center
國際生產中心
International Production Center
亞太及全球事業群組織
Asia Pacific & Global Business Management
Center
研發中心 Research & Development Center

11. Strength of Taiwan 4. Being the Asia-Pacific Operation Center
5. Being the Supply Center of the Whole Range of MEMORY & LCD’s (Color/Mono)
6. As an Advanced, Creative & Dynamic Country of Elec. Industry & aiming on Volume Q’ty, M’fg. Oriented
1. Well Educated HI-TEK Human Resource
2. Highly Dev. on PC’s being a Leading Multi-Media / I.A. M’fg & Supply Center
3. Towarding High Tech/Capital Involved Industries (Semiconductor Fields)

12. Major Economic Indicators - Taiwan

14. Function : As A BRIDGE in Between Philips Worldwide and Suppliers
Objectives :
Max. purchasing PROFITABILITY for
Philips Worldwide
Max. Philips organization SATISFACTION
CO - MAKER - SHIP with Key Suppliers

15. PHILIPS Taiwan IPO Activities
INFORMATION FLOW &
P.O.
GOODS FLOW
CASH FLOW
CUSTOMER
SUPPLIER
NOTE : “INFO. FLOW” including - Advance / Initial Purchasing, Quality Assurance
(Selection / Auditing / Rating) as well as financing & closing.

16. Business Per Area 2000 ( $135M ) 1999 ( $115M )
American Far East Europe
1999 ( $115M )

17. Supplier Number
Customer Number
256
138

18. Distribution of T/O per Product
2000 ( $135M )
1999 ( $115M )
CRT RAM ELEC MECH F/G E/M

19. IPO TURNOVER STATUS (1993 - 2001)
USD:Million
Person
Plan

20. IPO Taiwan Working Scope
1. Advanced/ Initial Purch. & Procur., even incl. Q.A. are all interactive, like an integrated function of a human body.
2. Package service would be e.g.
Quality :
- Selecting, Auditing, Up-grading, Adopting
Cost :
- Leverage power of P.D.'s/B.G.'s consolidation
Delivery :
- Availability thru well allocation
Flexibility :
- Local & prompt contact with supplier
Entrusting :
- Diff. service required v.s. diff. site/region
3. Side Effects :
PHILIPS in Region of Info. collection
Real Customer's of Purchasing
To have optimum on
communication, traveling & etc.
Lubricating any Conflict
Customer Friendly,
Footholds
Extended Arm
Effective/Efficient Costs
(OCoO)
(Buffer)

21. NORTH - TOWARD POLICY, JAPAN Quality Oriented Business
Timing (天時)
Region (地利)
Personnel (人和)
- Yen Appreciation
- Near by Taiwan
- Good Friendship
From zero/’93 to USD 5~6M/Now-a-days !
Quality Oriented Business

22. Your Global Purchasing Partner In Taiwan
PHILIPS IPO TAIWAN OUR ADDED VALUE
1. TEAMWORK APPROACH
2. NO COMMUNICATION GAP
3. WELL EXPERIENCED CAPABILITY
4. TAIWAN’S COMPETENCE
(TAIWAN, H.K. & CHINA)
5. CONSTRUCTIVE ADVICES (T.Q.R.D.)
6. NON-DISCLOSURE AGREEMENT
7. REASONABLE RECOVERY
8. LEVERAGE POWER FROM ALL PDs NEEDS
9. WIN-WIN TARGET
Your Global Purchasing Partner In Taiwan

23. WebSite : http://pww.ipo.ptw.philips.com
IPO Taiwan 2001 Slogan
We Commit to Deliver
Our BEST !!
以客為尊 無微不至
Philips IPO Taiwan Tel : Fax :
WebSite :

24. What’s BEST ??
B usiness
E xcellence
through
S peed & T eamwork

25. Global IPOs Activities in Taiwan
P II
Global IPOs Activities in Taiwan

26. P II / Global IPOs Activities in Taiwan  What are IPOs Activities

27. T/O Maping of W-wide IPOs in Taiwan (2000)
Unit : USD M
Compaq
Apple
Aashima
Liaison
Toshiba
Hitachi
Intel
Lucent
Samsung HP
Wintop
Siemens
Sony
Datec
Arp-datacom
Alps-Taiwan
senatek、Alpha Data、
Aurora、Kodak、
Xerox
KQ Taipei
Philips
TriGem GE
Nokia
A & A
Epson
50M
100M
250M
500M
1,000M +

28. W-wide IPOs in Taiwan’s T/O (2000 v.s. 1999)
unit : USD B
Source：OCIID/MOEA

29. Remark：Year 2000
a. TOP 10 US IPO ─ APPLE、A&A、COMPAQ、DELL、GATEWAY、HP、IBM、 INTEL、 INGRAM MICRO、SOLECTRON
b. TOP 5 Japan IPO ─ FUJITSU、HITACHI、 MITSUBISHI 、 NEC、 TOSHIBA
c. TOP 5 European IPO ─ AASHIMA、ACTEBIS、ERICSSON、NOKIA、SIEMENS
d. W-wide IPOs in Taiwan for T/O 37.6B purchased in 2000 (x66 companies)

30. Global Share of Taiwan’s 3C’s (in 2000)
Source : MIC, Taiwan

31. How IPOs to Evaluate Partner ?

32. Satisfaction of OEM / ODM Trade-terms
Source : MIC, Taiwan 50 45 45 41 34 27 23 15 5

33. IPOs Assessments Among Supplies in Taiwan / Japan / Korea1 2 3 4 5 6 7 8 9 10
Price
Flexibility
Delivery Lead Time
Logistic
Time to Market
Quality
Infrastructure
R&D Resource
Government Incentive
Taiwan
Japan
Korea
Good
Fine
Excellent NG

34. IPOs Views of Taiwan’s Overall Competition
Better Points
Need to Improve
People Level / 16
Supply Chain / 16
Transportation / 9
Customs Clearance / 9
Basic Infrastructures / 8
B2B Environment / 6
Customs Duty / 6
Governmental Efficiency / 2
Others / 2
Governmental Efficiency/24
Transportation / 15
Customs Clearance / 14
Basic Infrastructures / 12
Customs Duty / 11
B2B Environment / 8
Supply Chain / 7
People Level / 4
Others / 1

35. Conclusion (I)
Est. USD 7 ~ 12B / year being increased of Global IPOs buying from Taiwan. (e.g. in 2000 is $37.6B & 2001 aiming $47.6B)
Major items are : NB PC, Monitor, MPCBA, IC, LCD, DVD/CD’s Barebone, DTPC, DSC, M.P., I.A. … etc.
W-wide top IT Industry companies : Compaq, IBM, HP, Dell, Intel, Toshiba, Sony, NEC, Ericsson, Nokia, Samsung, Philips… etc. are all purchasing in Taiwan, grown-up Taiwan’s international position.

36. Conclusion (II)
Taiwan Government is supporting on the fields of IC, LCD, Wireless, Communication, IA… etc. there are coping with IPOs interesting on purchasing.
Per MIC’s forecast, major Ind. m’fg values are :
- H. Ware $ 30.2B ($23.2B) - Semi. $35B ($22.4B) FDS $5.6B ($2.7B)
- Network $ 4.5B ($3.0B) W. Comm. $ 3.1B (0.9B) - IA $ 3.3B ($1.4B)
Taiwan’s Competences : Price, Quality, Flexibility, Time to market, Speed of new development … etc towarding to HVE production would be sustained as w-wide leading capabilities.
2002 v.s. (2000)

37. P III
IPO & Supplier’s Relationship

38. Bridging Customer & Supplier
- On top of the business prime-mover / shaker
- IPO would be the supporter to supplier on the followings :
1. Schedule Arrangement
2. Accommodation Booking
3. Agenda Preparation
4. Facility Provider
5. Communication Supporter
6. Minutes Taken
7. Action Follow-up
8. Tooling Control
9. Pre-qualification
10. Technical Advisor
11. Troubles Shooting
12. Cost Analyst
13. Logistics Arrangement
14. Conflict Buffer
15. Payment Endorser
16. Multi-winners Creator
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39. SWOT Analysis – Strength
1. IPO as special A/C for Sales
2. Global Logistics Exp./ Operation
3. Materials Localization
4. Lasting International Competition
5. Knowledge Base Service Oriented(SCM)
6. Leading Professional Skill in w-wide
(Tooling Design / Making)

40. SWOT Analysis - Weakness
1. Less Mass Production in Taiwan
2. Speediness of Basic M’tls Dev.
3. Less advanced IT in Communication
4. Less control on sub-sub-contracting

41. SWOT Analysis - Opportunity
1. MIC - Low Cost, High Volume
2. Emerging High end / Tech. Product Dev. (Opto-Elec., LCD’s, IC’s…)
3. Expecting “Large three links” being opened ASAP
4. Enlarged Biz / Mktg Scope – WTO’s

42. SWOT Analysis - Threat 1. Raising up Operation Costs (O/H)
2. Forcing to Close Taiwan’s Operation
3. Personnel Mg’t in Big Challenging
4. Social Unrest Crossing Strait
5. Creating Potential Local Competition

43. P. IV / New Era with New Concept
新紀元 與 新思維
P. IV / New Era with New Concept
1. 順應時代潮流
To Follow Times Trend
2. 創造競爭優勢
To Create Competitive Power
3. 改變運作方式
To Change Operation Principle

44. 時代潮流 (Times Trend) 電腦化 Computerization
改善 與 創新 Improvement & Innovation
知識管理 Knowledge Management
合縱 與 連橫 Mergence or Alliance
專業代工 相對 垂直整合
CEMS v.s. Vertical Integration
客戶滿意 與 價值鏈
Customer Satisfaction & Value Chain

45. 競爭優勢 Competitive Power
掌握成本 Total Cost Owner-ship
+ +
獲利能力 Ensure Profitability
- 藉 由 thru. the way of –

46. 競爭優勢 Competitive Power
營運效率 Operation Efficiency
* 技術 Leading Technology
* 管理 Better Managements
與 and
策略地位 Strategic Position
* 特色 Characteristic
* 服務 More Services
* 價值 Added Value

47. 運作方式 Operation Principle
歐盟 / 歐元 對 世界 / 美元
EEC / EURO v.s. W-wide / USD
交易價格
FOB  CIF  DDU (Delivery Duty Unpaid)
付款條件
Payment Terms L/C  D/A  O/A 60 days

48. 運作方式 Operation Principle
配套供應,合併出貨
Package Deal & Consolidation
廠商庫控
Consigned Stock  Vendor Hub  VMI (Vendor Managed Inventory)
線上交貨
STL (Ship to Line)

49. 改變 是一條 不變 的路 Changing is a way of Un-change 用 心 看近 用 腦 想遠 Near: by Heart Far: from Brain
因此 so that

50. 敬 請 指 教 再 會