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15-09-2011, Rotterdam

Samsung Electronics in Romania. 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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15-09-2011, Rotterdam

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  1. Samsung Electronics in Romania 15-09-2011, Rotterdam

  2. Content Short introduction to Samsung Electronics Short introduction to Samsung Electronics Logistics Services Samsung in Romania Romania, issues, observations, expectations. Questions / comments

  3. Introduction to Samsung Electronics

  4. Introduction to Samsung Electronics

  5. Introduction to Samsung Electronics, continued Samsung is a market leader:

  6. 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

  7. 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 WimBosman • Factory distribution • Supply to all Sales Subsidiaries of Europe and Centralized DC’s • Sub contracted to Waberers, LKW Walter, K+N etc.

  8. 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

  9. 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

  10. 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)

  11. 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.

  12. Next steps Questions and Feedback Thank you

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