in
15-09-2011, Rotterdam

Content
Short introduction to Samsung Electronics
Short introduction to Samsung Electronics Logistics Services
Samsung in Romania
Romania, issues, observations, expectations.
Questions / comments
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Introduction to Samsung Electronics
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Introduction to Samsung Electronics
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Introduction to Samsung Electronics ,
Samsung is a market leader:
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Introduction to Samsung Electronics Logistics Services
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Internal 4PL to Samsung Electronics Europe
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Responsible for all logistics activities within Europe
Inland transportation
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Customs clearances
25 local warehouses
1 European Spare Parts operation
2 centralised warehouses
Factory distribution
(mainly) asset free

Samsung in Romania
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Manufacturing
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Assembly of LCD computer monitors and Colour TV
3 sites, operated by 3 rd party
A Korean contract manufacturer for Samsung Electronics
Raw materials supplied via Constanta
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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
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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
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In general, like all listed companies, Samsung needs:
Reliability and predictability
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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.
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Constanta Port competes with Hamburg, Le Havre, Rotterdam, Gdansk etc
Romania as a gateway competes with “Nederland DistributieLand”
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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
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Samsung recognises opportunities and benefits of Constanta
Flows rerouted from Port of Koper to Constanta in 2010 / 2011.
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Observations and improvement points
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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
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High volumes from factory into Europe
Cost level per truck considerable higher than Slovakia / Hungary into EU
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In-balance in outbound and inbound freight
Always empty leg to factories for all carriers
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No local carriers (yet) in Samsung’s portfolio
Improvements to infrastructure to reduce lead time
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Korea officially requested to Romania to make VAT deferment possible
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Huge impact on financial supply chain when using Romania as EU gateway
(importing raw materials and finished goods)

Romania; issues, observations and expectations, 4
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From controlling to cooperation
AEO-like methods of working (comparable to Netherlands)
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Avoid bottlenecks per clearance
Lean supply chains are disrupted by unexpected delays.

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