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Contents Company Introduction Schenker Solution Summary I

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Presentation on theme: "Contents Company Introduction Schenker Solution Summary I"— Presentation transcript:

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

1 Contents Company Introduction Schenker Solution Summary I
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

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

3 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: ,469 SQM Sydney Melbourne Brisbane Adelaide Perth Auckland Christchurch Total Employees 539 207 95 40 53 155 21 1110 Warehouse Space 69,000m2 22,700m2 12,000m2 6,700m2 12,300m2 12,019m2 750m2 135,469m2 No. of Facilities 4 3 1 16

4 Samsung Business History in Schenker
~ 2000 Samsung Logitech partner 15 3 2001 CE Div. 1C1B Nomination Samsung Account Rev. Number of Koreans 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 2005 SEHZ Air Export Partner Samsung LCD RMA Center GPCA Distribution Partner 9 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 106 22 M EUR

5 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 Semiconductor 1C1B Partner LCD 1C1B Partner SSS SET SAPL SME SSI SSEG SESS SESL SEC Ocean & Multimodal Freight Operation SEC (LCD and others) – Export & Import SESL (Rail) – Export to Europe Logistics & Domestic trucking 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 SEA RHQ 1C1B Partner SEPHIL SEIN SEAU

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

7 Samsung Australia / Schenker Partnership – 2010
Success through Partnership since 2002 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 Suggested Speaker: Alain Key Points: Longstanding relationship Partnership development over time

8 Company Introduction Schenker Solution Summary I
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

9 1. Infrastructure – Glendenning Warehouse
Current Warehouse – Glendenning Warehouse Samsung Allocation 3,300 sqm, expandable up to 4,000 sqm in 2010 Type of Storage Racking 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 Type Schenker leased Multi Client warehouse # of Staff - Dedication 29 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 , 9

10 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 ,700 Moved in last 3 month Stage 3 – 800 SQM Overflow Location Admin Dispatch Receiving Return WH Office Staging Stage 1 – 1,950 SQM Small/Medium Bin Location 6 story pallet racking Stage 2 – 550 SQM 6 story pallet racking

11 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

12 Company Introduction Schenker Solution Summary I
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

13 - Documentation Management
2. Operation and Process Account Management - KPI reporting - Customer Service 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 , 13

14 - Documentation Management
2. Operation and Process Account Management - KPI reporting - Customer Service 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 , 14

15 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

16 Visibility to Origin/SEAU
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

17 PO Management System – PO Maintenance
6/04/2017 PO Management System – PO Maintenance Provides information on all raised Purchase Orders Schenker Australia, Oliver Bohm

18 Purchase Order Management – Line Level

19 Individual Packing @ Origin
2. Operation and Process – Inbound Management Individual Origin With low labour cost at Origin, Schenker is considering the perform all the individual packing operation at Origin level Freight Origin Individual 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

20 - Documentation Management
2. Operation and Process Account Management - KPI reporting - Customer Service 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 , 20

21 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

22 2. Operation and Process – Warehouse Management
Volume Analysis Values Oct Nov Dec Grand Total Sum of Qty 30968 35917 38410 105295 No of Location Visited 15916 17466 19307 52689 # of Consignment (Consolidated) 5399 6129 4939 16467 Average of OrderLineNumber 5.01 4.92 5.06 5.00 Daily Ave Consignment 269.95 306.45 246.95 284.43 Qty Picked from Location ID Qty % Location visited A - Small Mobile Parts 23158 22.0% 9079 17.2% G - Long Span Shelf 5798 5.5% 3878 7.4% H - Racking 34691 32.9% 25252 47.9% I - Medium Bin 20952 19.9% 7252 13.8% J - Large Bin 19236 18.3% 6546 12.4% Staging / Yennora 1460 1.4% 682 1.3% Grand Total 105295 100.0% 52689 * All Analysis based on Oct, Nov, Dec 09 dispatch data

23 2. Operation and Process – Warehouse Management
ABC Velocity Analysis  Class Volume SKU # of SKU A 80.0% 16.4% 1103 B 15.0% 32.0% 2151 C 5.0% 51.6% 3476 Sku Class ID Qty Picked % A A - Small Mobile Parts 20256 19.2% G - Long Span Shelf 4873 4.6% H - Racking 26866 25.5% I - Medium Bin 15148 14.4% J - Large Bin 15922 15.1% ETC 1120 1.1% A Total 84185 80.0% 80 % of 16.4% of SKU , * All Analysis based on Oct, Nov, Dec 09 dispatch data

24 2. Operation and Process – Warehouse Management
Storage Solution – Inventory Slotting : Right Right Place Warehouse – Limited Resource Space People Equipment Cost Goal : Cost Saving & Performance Improvement Resource Management Shipping performance Improvement Solution : Inventory Slotting Locations where products are slotted Distance people have to travel to pick them Benefits Reduced labor costs Maximize space utilization Minimize picker travel

25 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 ,

26 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) ,

27 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

28 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

29 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 ,

30 - Documentation Management
2. Operation and Process Account Management - KPI reporting - Customer Service 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 , 30

31 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

32 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

33 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 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. ,

34 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 W/H team’s assessment on C/R Not Accepted Notification to ASC 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

35 - Documentation Management
2. Operation and Process Account Management - KPI reporting - Customer Service 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 , 35

36 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

37 Warehouse Management System Transport Management System
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 ,

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

39 - Documentation Management
2. Operation and Process Account Management - KPI reporting - Customer Service 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 , 39

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

41 Contents Company Introduction Schenker Solution Summary I
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

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

43 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 ,

44 Thank you


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