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

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Presentation on theme: "0, Samsung Spare parts RFQ presentation Schenker Australia –Daniel Han 6th. April 2010."— Presentation transcript:

1 0, Samsung Spare parts RFQ presentation Schenker Australia –Daniel Han 6th. April 2010

2 1 Contents Company Introduction I Schenker Solution II 1.Company Introduction – DB Schenker 2.Why DB Schenker? Summary III 1.Infrastructure – SYD Warehouse 2.Operation and Process Review 1.Inbound Management 2.Warehouse Management 3.Transport Management 4.IT Management 5.Account Management

3 2 Company Introduction – Who is DB Schenker? DB Schenker in Numbers

4 Founded:1962 Staff total:1,100 Facilities total:16 W/H total: 135,469 SQM 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 Company Introduction – DB Schenker ANZ

5 4  112  106  73 Samsung Business History in Schenker  Samsung Logitech partner ~  CE Div. 1C1B Nomination 2002  SEPHIL / SEIL Implementation (IM/EX/DO/WH)  SEAU Implementation (IM/EX/DO/WH) 2003  Semiconductor Div. 1C1B Nomination  SET Implementation 2004  SESL / SESS Implementation  SEHK / SSS/ SAPL Implementation 2005  SEHZ Air Export Partner  Samsung LCD RMA Center  GPCA Distribution Partner 2006  Dongguan HDD 1C1B Nomination  SME Implementation  15  20  35  45  52  65  57 M EUR Samsung Account Rev. Number of Koreans 2007  TSTC Air Export Partner  TSE/SDMA/SEIN Air Freight Partner 2008  SEV Freight Partner  EEDC Land Transportation Partner 2009  Rail Transportation for LCD to Europe  G ERP Implementation for 13 sites 22

6 5  Business Overview  SEA RHQ 1C1B Partner  SEPHIL  SEIN  SEAU  Semiconductor 1C1B Partner  LCD 1C1B Partner  SSS  SET  SAPL  SME  SSI  SSEG  SESS  SESL  SEC  Global Air Freight Partner  SEC  TSTC  TSED  SEHZ  SESC  SAE (HDD OEM)  SEIN  SEPHIL  SEV  IPC  SMD  SDIC  Air Freight Operation  Ocean & Multimodal Freight Operation  Logistics & Domestic trucking  Mobile – TSTC, SEHZ, SEV & SEC  LCD – SESL, SEC  Semiconductor - SESS  OMS – SEPHIL, SEIN, SAE & SEC  Note PC – SESC  Others – Digital Imaging, SMD, DSEM & IPC  SEC (LCD and others) – Export & Import  SESL (Rail) – Export to Europe  SEAU 6 DC operation & Distribution  SIN, SHA, SZV & SZX for Semicon/LCD hub  SEPHIL VMI Hub  SSI / SSEG China Hub  SESL /SESS Domestic trucking  Reverse Logistics in Malaysia & Australia  SEPOL Trucking from EEDC  GPCA distribution in US

7 6  Samsung Account Management team in Schenker  Corporate Account Director  Alex Choi  Executive Sponsor  Steve Dearnley  APAC  US  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  Head  Jake Chung (SHA)  TSN  TY Kim  SHA  BS Kang  SHA  Hunter Gwon  HKG  John Kim  HKG  Jan Yip  SZX  Kris Hyun  EU  GAM  N. Yoon (BTS)  Korea  Head  Tony Park  KAM  Harry Shin  CS  Alan Park  Japan  KAM  Shiono Takeshi  Australia  KAM  Daniel Han  KAM  TBA (May)  Ops Mgr.  Patrick Jun  Philippines  KAM  TK Park  Vietnam  KAM  David Choi  Singapore  KAM  Helena Susanto  Indonesia  Head  James Kim  Ops. Mgr  Nurettin (STR)  Ops. Mgr  TBA (BTS, May)

8 Samsung Australia / Schenker Partnership – 2010  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  Success through Partnership since 2002

9 8 Company Introduction I Schenker Solution II 1.Infrastructure – SYD Warehouse 2.Operation and Process Review 1.Inbound Management 2.Warehouse Management 3.Transport Management 4.IT Management 5.Account Management 1.Company Introduction – DB Schenker 2.Company Introduction – Schenker ANZ Summary III

10 9 9, Samsung Allocation 3,300 sqm, expandable up to 4,000 sqm in 2010 Type of StorageRacking and Binning Security CCTV Cameras(16 CCTV’s), DVRs, Access controlled doors MHE 2 X Counter Balance Fork lifts, 8 x High Reach Value Added Services Return Inspection De Grading & Disposal Facility TypeSchenker leased Multi Client warehouse # of Staff - Dedication29 staff + 1 Supervisor + 1 Facility Manager  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 1. Infrastructure – Glendenning Warehouse Current Warehouse – Glendenning Warehouse

11 10 1. Infrastructure – Glendenning Warehouse Stage 2 – 550 SQM 6 story pallet racking  Admin  Dispatch  Receiving  Return  WH Office  Staging Stage 1 – 1,950 SQM  Small/Medium Bin Location  6 story pallet racking Stage 3 – 800 SQM Overflow Location 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 Current Warehouse – Glendenning Warehouse

12 11 Stage 1. Glendenning Warehouse  Location : Glendenning (Current Warehouse)  Space Available : 3,300 SQM 1. Infrastructure – Warehouse Planning 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 SYD Samsung Spare parts Warehouse

13 12 Company Introduction I Schenker Solution II 1.Infrastructure – SYD Warehouse 2.Operation and Process Review 1.Inbound Management 2.Warehouse Management 3.Transport Management 4.IT Management 5.Account Management 1.Company Introduction – DB Schenker 2.Company Introduction – Schenker ANZ Summary III

14 13, 2. Operation and Process Inbound Management - PO Management - Documentation Management - Inbound Planning - Custom Clearance Warehouse Management Inventory Management (FIFO) - WMS Location Management (A,B,C) - Operation Capacity Improvement - Space Utilization Transport Management - Outbound Transport Management - IOD/POD management - Return Transport Management - Exception / Contingency Management IT system Management - WMS Management - TMS Management - G-ERP readiness Account Management - KPI reporting - Customer Service

15 14, 2. Operation and Process Inbound Management - PO Management - Documentation Management - Inbound Planning - Custom Clearance Warehouse Management Inventory Management (FIFO) - WMS Location Management (A,B,C) - Operation Capacity Improvement - Space Utilization Transport Management - Outbound Transport Management - IOD/POD management - Return Transport Management - Exception / Contingency Management IT system Management - WMS Management - TMS Management - G-ERP readiness Account Management - KPI reporting - Customer Service

16 15 DB SCHENKER Freight Forwarding service – Your Total Solution Total N to N solution from Schenker  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. One Stop service station Schenker Freight Products 2. Operation and Process – Inbound Management

17 16, SAP PO raised PO Details to PO Mgmt System Visibility to Origin/SEAU SEAU to raise the purchase order - Weekly Purchase order to each vendor by SEAU 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 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 2. Operation and Process – Inbound Management Purchase Order Management

18 17 PO Management System – PO Maintenance Provides information on all raised Purchase Orders

19 18 Purchase Order Management – Line Level

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

21 20, 2. Operation and Process Inbound Management - PO Management - Documentation Management - Inbound Planning - Custom Clearance Warehouse Management - Operation Capacity Improvement - Inventory Management (FIFO) - WMS Location Management (A,B,C) - Space Utilization Transport Management - Outbound Transport Management - IOD/POD management - Return Transport Management - Exception / Contingency Management IT system Management - WMS Management - TMS Management - G-ERP readiness Account Management - KPI reporting - Customer Service

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 ValuesOctNovDecGrand Total Sum of Qty No of Location Visited # of Consignment (Consolidated) Average of OrderLineNumber Daily Ave Consignment IDQty%Location visited% A - Small Mobile Parts % % G - Long Span Shelf % % H - Racking % % I - Medium Bin % % J - Large Bin % % Staging / Yennora %6821.3% Grand Total % % * All Analysis based on Oct, Nov, Dec 09 dispatch data

24 23, ClassVolumeSKU# of SKU A80.0%16.4% 1103 B15.0%32.0% 2151 C5.0%51.6% % of 16.4% of SKU Sku ClassIDQty Picked% A A - Small Mobile Parts % G - Long Span Shelf % H - Racking % I - Medium Bin % J - Large Bin % ETC % A Total % ABC Velocity Analysis * All Analysis based on Oct, Nov, Dec 09 dispatch data 2. Operation and Process – Warehouse Management

25 Storage Solution – Inventory Slotting : Right Right Place Benefits Reduced labor costsMaximize space utilizationMinimize picker travel Solution : Inventory Slotting Locations where products are slottedDistance people have to travel to pick them Goal : Cost Saving & Performance Improvement Resource ManagementShipping performance Improvement Warehouse – Limited Resource SpacePeopleEquipmentCost

26 25, Warehouse Management: Consolidation Phase 1. Consolidation per SKU Class - Racking Time Line : May –June 10 Benefits : Improvement on Picking Efficiency Cost Reduction : 1.2 FTE Current Analysis 2. Operation and Process – Warehouse Management

27 26, Warehouse Management: Binning Utilisation Phase 2. Dual Slotting for existing Binning 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) 2. Operation and Process – Warehouse Management As Is To Be Horizontal Split Vertical Split

28 27 DO received Stock Allocation Picking Dispatch FIFO ( First In, First Out) Schenekr WMS will ensure all products to be allocated to order based on FIFO logics RF Scan Pick Scan pick of goods in Location/SKU and Pick slip guarantee the exact product pick 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 2. Operation and Process – Warehouse Management Warehouse Management: Outbound Process review

29 28 Operation Capacity Improvement – Conveyor Line 2. Operation and Process – Warehouse Management  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 Benefits 1.Consolidation of picking activities into a more confined area. 2.Reduction in total footprint 3.OH&S benefit as pickers are segregated from other Mechanical Handling Equipment operations. 4.Improvement in pick efficiency as picking is mechanically assisted 5.Possible 15 – 35% increase in productivity 6.Output limited by maximum picking capability of picking machine(s) 7. Cost implications by requirements for specialised item of handling equipment Risks 1.Output limited by maximum picking capability of picking machine(s) 2. Cost implications by requirements for specialised item of handling equipment [Narrow Aisle Stock picker Machine(s)]  Re-locate all of the parts currently located in, very small, small and large Binning into a Narrow Aisle Shelving System Operation Capacity Improvement – Narrow Aisle System

31 30, 2. Operation and Process Inbound Management - PO Management - Documentation Management - Inbound Planning - Custom Clearance Warehouse Management - Operation Capacity Improvement - Inventory Management (FIFO) - WMS Location Management (A,B,C) - Space Utilization Transport Management - Outbound Transport Management - IOD/POD management - Return Transport Management - Exception / Contingency Management IT system Management - WMS Management - TMS Management - G-ERP readiness Account Management - KPI reporting - Customer Service

32 Schenker has made a Strategic Partnership with STE for Samsung Spare parts Transport Structure – Combined Service Provider 2. Operation and Process – Transport Management 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 32, Dispatched Transit IOD/POD Collection 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 POD Visibility Through Schenker Web Portal, Schenker will provide all electronic scan copy of POD 2. Operation and Process – Transport Management IOD Collection Through newly connected TMS and Carrier system, Schenker will provide all electronic scan copy of POD - Live Data Operation Capacity Improvement – IOD/POD Management

34 33, 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 Then the second sweep of vehicles go out with the general freight, approximately 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. 2. Operation and Process – Transport Management Operation Capacity Improvement – NBD before 10 am delivery

35 2. Operation and Process – Outbound Management W/H team’s assessment on C/R Notification to ASC SEAU approved EP requests? Notification to ASC Credit Requests via Fax or Not Accepted Accepted Consignment Registration/Data Entry and Posting ASC receives con- note and returns goods W/H inspection / G-ERP EP creation Not Approved Approved W/H to process (label/put away/etc) End Area of Improvement All Manual Process without any system support. SEAU/Schenker already start to change Spare parts return process by introducing 1. GRMS RA approval 2. Fast responses to Service agents 3. Efficient way of controlling returns / better 3PL control 4. Introduction of RA number 5. KPI driven processes Return Management – Process Improvement

36 35, 2. Operation and Process Inbound Management - PO Management - Documentation Management - Inbound Planning - Custom Clearance Warehouse Management - Operation Capacity Improvement - Inventory Management (FIFO) - WMS Location Management (A,B,C) - Space Utilization Transport Management - Outbound Transport Management - IOD/POD management - Return Transport Management - Exception / Contingency Management IT system Management - WMS Management - TMS Management - G-ERP readiness Account Management - KPI reporting - Customer Service

37 36, 1.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 2. Operation and Process – IT Management Benefits Current IT Structure : Samsung – Schenker Interface Diagram

38 37, 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 t hrough 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 GM John Jessen IT GM John Jessen IT PMO Megan Lyall IT PMO Megan Lyall IT Business Apps Ravi Kesariraman IT Business Apps Ravi Kesariraman Lead Developer Vu Lam Lead Developer Vu Lam IT LOG Support Dean Cornish IT LOG Support Dean Cornish Applications Management Claudio Nieto Applications Management Claudio Nieto Dell IT Account Management Robert Marshal Dell IT Account Management Robert Marshal Support Manager Yanto Jahja Support Manager Yanto Jahja

40 39, 2. Operation and Process Inbound Management - PO Management - Documentation Management - Inbound Planning - Custom Clearance Warehouse Management - Operation Capacity Improvement - Inventory Management (FIFO) - WMS Location Management (A,B,C) - Space Utilization Transport Management - Outbound Transport Management - IOD/POD management - Return Transport Management - Exception / Contingency Management IT system Management - WMS Management - TMS Management - G-ERP readiness Account Management - KPI reporting - Customer Service

41 2. Operation and Process – Account Management Account Management Structure : Supporting team for Samsung GM Major Accounts Account Management Coverage National Operations FG Air & Ocean PM’s Transport Manager Carrier Account Manager IT Account Management National Operations SP International Freight Domestic Freight Business PartnersIT/Projects Program Manager - FG Program Manager - SSP Business Analyst Samsung Account Management Team CEO

42 41 Contents Company Introduction I Schenker Solution II 1.Company Introduction – DB Schenker 2.Why DB Schenker? Summary III 1.Infrastructure – SYD Warehouse 2.Operation and Process Review 1.Inbound Management 2.Warehouse Management 3.Transport Management 4.IT Management 5.Account Management

43 42 Operation Skilled labours with 8 yrs in experience in Samsung spare parts operation Dedicated Operation team organized and operates Strong Global Network – One stop service provider Implementation Skilled/Experienced team will be deployed during implementation All IT/Operation/ Acct Management support have been identified and ready to support Dedicated Account Manager will be assigned Cost Benefits “Minimum Cost, Maximum Service Level” Utilization of pre-made solutions in all area Continuous Cost saving opportunity – Gain Sharing Long term Business partnership IT “Copy & Paste” of SEAU F/G system Current IT service to SEAU will be all available to Samsung Spare parts without additional Cost T&T visibility/ TMS/ WMS G-ERP platform already set up for any EDI interface DB Schenker: Committed to becoming a leading transport and logistics provider for Samsung 3. Summary

44 43, 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 3. Summary

45 44 Thank you


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