Epson 2007 conference presentation
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Transcript of Epson 2007 conference presentation
Seiko Epson CorporationSeiko Epson CorporationSeiko Epson CorporationSeiko Epson Corporation
Denis Doyle – Operations Director
26th September 2007
Strategy to date / Summary
• (Seiko) Epson Overview
• Logistics Infrastructure Evolution
• Direct Ship Evolution
• One aspect of flexibility in the supply chain
• Summary
Consolidated Total Sales (YE Mar 2007) ¥¥1,416.0Bn1,416.0Bn /€ 9.0Bn
Precision ProductsPrecision Products
¥¥86.9Bn [86.9Bn [€€0.55 0.55
billion] (6.1%)billion] (6.1%)
Watch,
Optical,
FA Products
InformationInformation--Related EquipmentRelated Equipment
¥¥913.4Bn [913.4Bn [€€5.8 billion5.8 billion] (64.5%)] (64.5%)Electronic Devices Electronic Devices
¥¥411.2Bn [411.2Bn [€€2.6 billion2.6 billion](29.0%)](29.0%)
Notes 1. Segment sales exclude intersegment sales2. % of sales for each product categories in each business segment include sales that occurred between the product categories, within the business segments3. Euro amounts are included solely for the convenience of readers.
The rate of ¥157.25 = €1 at March 31, 2007, has been used for the purpose of this presentation
Displays
Energy SavingEnergy Saving
Quartz
Devices
Semi-
conductors
Other ¥4.3Bn
Color ImagingColor Imaging
Imaging and
Information
Products
Visual
Instruments
PCs
Micro-Mechatronics
85.2% 11.6% 3.2% 58.9% 19.8% 21.3%
(0.3%))))
Finished product range overview
Business &
networking
Pro-graphics
Home photo
& printing
Point of sale
Displays
Scanners &
cameras
Projectors
EMEA logistics infrastructure FY02 to FY08
ESC Warehouse
Central Warehouse
Dubai
EMEA logistics infrastructure FY02 to FY08
Central Warehouse
Dubai
Outsourced
7,500m2
Hamina – FiAll products for
Russia
Insourced
12,500m2
Telford - UK Supplies &
Media
Outsourced
47,000m2
Tilburg - NLAll main units +
toner
Insourced
7500m2
Barcalona - SpAll Spare Parts
Outsourced
2,500m2
All products for ME/Af/CIS
CDC construction status July 2007
Recently voted “Best Looking” warehouse in Holland!
Impacts of these changes
5
Historic Epson EMEA Physical Structure
ESC Warehouse
Central Warehouse
EUL
EDC3
EFS
EIB
EPO
EIS
SWE
EDG
EDC2
EDC5
EMO
EMS
ESPC
DUB
7
Future Epson EMEA Physical Structure
ESC Warehouse
Central Warehouse
EDC3
CDC
EMO
ESPC
DUB
• 15 sites – approx 140,000m2 at height
• Inventory “trapped” in many locations
• Many steps in the supply chain
• Customers receiving goods from many sites
• Many “owners” of the supply chain
• Obviously an expensive solution
• 5 sites – approx 85,000m2 expected
• Inventory more flexible
• In times of shortage customers gets
goods quicker
• Customers receiving more
consolidated shipments
• One single “owner” of the supply chain
• A more economic solution
Direct shipment Evolution
EDC ESC WH Cross dock Customers
Step 1 Step 2 Step 3 Step 4
Historic Supply Chain
EDC ESC WH Cross dock Customers
Step 1 Step 2 Step 3 Step 4
EDC ESC WH Cross dock Customers
Step 1 Step 2 Step 3 Step 4
Step 1
EDC Cross dock Customers
Step 2 Step 3
Factory
Step 0
CDC Cross dock Customers
Step 1 Step 2 Step 3
Future Supply Chain
Factory
Step 0
EDC Cross dock Customers
Step 1 Step 2 Step 3
EDC Cross dock Customers
Step 1 Step 2 Step 3
Asia Direct
Factory
Step 0
Factory
Step 0
Asia Direct
Commit a certain % (eg 70%) of expected volume over a period
a minimum of 10 weeks before delivery date to customer site to
allow factory build and ship direct from factory.
Savings for both customer and Epson.
Remaining demand can be fulfilled from Euro sites.
Future Supply Chain
Will also allow for container storage of fully configured product
and shipment from container storage direct to customer without
any warehouse handling (pallet depending).
Will also allow for cross docking (receipt and consolidation) in
warehouse without storage and then direct to customer.
Direct Ship
Ocean Carriers
EMEA Supply Chain to CDC
Asian factory
to Rotterdam
seaport
Rotterdam CY
max 3 days
free storage
Per barge or rail transport
from RTM CY to BTT CY
lead-time 1 day
Storage in
BTT max 14
days free
Delivery by
truck to CDC
15 minutes
CDC WH into
racking or via
fast track
Transporter
Inbound
custom
clearance
Picking from
BTT response
time: < 10hr.
STANDARD STANDARD
FLOWFLOW
EXCEPTIONAL EXCEPTIONAL
FLOWFLOW
Delivery to CDC 2
hours
Warehouse Op
Ocean Freight Inland Freight
EPSON CDC
BTT CYRTT
Inland transport
Growth Opportunity
Flexibility on Space/Storage
A M J J A S O N D J F M
Unused Space = Wasted Cost
Stock
Level
Idea
l war
ehou
se s
ize
Traditional Warehouse Size
Flexibility on Space/Storage
A M J J A S O N D J F M
Stock
Level Minimum Committed Space
Container Yard Storage
Flexible Storage
A M J J A S O N D J F M
Stock
Level Minimum Committed Space
Container Yard Storage
Flexible Storage
Flexibility on Space/Storage
A M J J A S O N D J F M
Stock
Level Minimum Committed Space
Container Yard Storage
Flexible Storage
Flexibility on Space/Storage
Strategy to date / Summary
• Implement direct shipment
• Eliminate warehouses at local ESC (Epson Sales Company)
• Decrease space & handling activity in total
• Increase configuration at factory enabling Direct Ship from Asia to Customer
• Fully utilize resources
• Make what we have more flexible
• Design for Supply Chain
EXCEED YOUR VISION
Thank You