1,
Samsung Spare parts RFQ presentation
Schenker Australia –Daniel Han
6th. April 2010
2
Contents
Company IntroductionCompany IntroductionI
Schenker SolutionSchenker SolutionII
1.1. Company Introduction – DB SchenkerCompany Introduction – DB Schenker
2.2. Why DB Schenker?Why DB Schenker?
SummarySummaryIII
1.1. Infrastructure – SYD WarehouseInfrastructure – SYD Warehouse
2.2. Operation and Process ReviewOperation and Process Review
1.1. Inbound ManagementInbound Management
2.2. Warehouse ManagementWarehouse Management
3.3. Transport ManagementTransport Management
4.4. IT ManagementIT Management
5.5. Account ManagementAccount Management
3
Company Introduction – Who is DB
Schenker?
DB Schenker in Numbers
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
112
106
73
Samsung Business History in Schenker
Samsung Logitech partner~
2000
2001 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
3
3
5
9
15
20
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
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
Samsung Account Management team in Schenker
Corporate Account Director
Alex Choi
Executive SponsorSteve Dearnley
APAC US
GAMYK Lee (SEL)
SCAMTBA (SIN,
Apr)
ROMKit Kim (HKG)
ROMKate Sohn
(SIN)
ITBrad Poh
(SIN)
GAMJ. Jang (LAX)
China
HeadJake Chung (SHA)
TSNTY Kim
SHABS Kang
SHAHunter Gwon
HKGJohn Kim
HKGJan Yip
SZXKris Hyun
EU
GAMN. Yoon
(BTS)
Korea
HeadTony Park
KAMHarry Shin
CSAlan Park
JapanKAM
Shiono Takeshi
Australia
KAMDaniel Han
KAMTBA (May)
Ops Mgr.Patrick Jun
Philippines
KAMTK Park
Vietnam
KAMDavid Choi
SingaporeKAM
Helena Susanto
Indonesia
HeadJames Kim
Ops. MgrNurettin
(STR)
Ops. MgrTBA (BTS,
May)
Samsung Australia / Schenker Partnership – 2010
Freight forwarding Air Freight Ocean Freight Customs Brokerage Cartage Service
WarehousingInventory ManagementDaily Cycle Count
National DistributionOutbound TransportationHome DeliverySame Day Delivery
Reverse LogisticsCall Centre - Customer Call OutDe-Grading inspection
IT ServicesProject Management
KPI Reporting
Success through Partnership since 2002
9
Company IntroductionCompany IntroductionI
Schenker SolutionSchenker SolutionII
1.1. Infrastructure – SYD WarehouseInfrastructure – SYD Warehouse
2.2. Operation and Process ReviewOperation and Process Review
1.1. Inbound ManagementInbound Management
2.2. Warehouse ManagementWarehouse Management
3.3. Transport ManagementTransport Management
4.4. IT ManagementIT Management
5.5. Account ManagementAccount Management
1.1. Company Introduction – DB SchenkerCompany Introduction – DB Schenker
2.2. Company Introduction – Schenker ANZCompany Introduction – Schenker ANZ
SummarySummaryIII
1010
,
Samsung Allocation
3,300 sqm,
expandable up to 4,000 sqm in 2010
Type of Storage Racking and Binning
SecurityCCTV Cameras(16 CCTV’s) , DVRs, Access controlled doors
MHE2 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 - 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
1. Infrastructure – Glendenning
Warehouse
Current Warehouse – Glendenning Warehouse
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1. Infrastructure – Glendenning Warehouse
Stage 2 – 550 SQM
6 story pallet racking
Admin
Dispatch
Receiving
Return
WH Office
Sta
gin
g
Stage 1 – 1,950 SQM
Small/Medium Bin Location
6 story pallet racking
Stage 3 – 800 SQM
Overflow Location
Paul HartmanPaul 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
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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
Company IntroductionCompany IntroductionI
Schenker SolutionSchenker SolutionII
1.1. Infrastructure – SYD WarehouseInfrastructure – SYD Warehouse
2.2. Operation and Process ReviewOperation and Process Review
1.1. Inbound ManagementInbound Management
2.2. Warehouse ManagementWarehouse Management
3.3. Transport ManagementTransport Management
4.4. IT ManagementIT Management
5.5. Account ManagementAccount Management
1.1. Company Introduction – DB SchenkerCompany Introduction – DB Schenker
2.2. Company Introduction – Schenker ANZCompany Introduction – Schenker ANZ
SummarySummaryIII
1414,
2. Operation and Process
1515,
2. Operation and Process
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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
1717,
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
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PO Management System – PO Maintenance
Provides information on all raised Purchase Orders
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Purchase Order Management – Line Level
2020,
Freight EXW @ Origin
Inbound Planning
Port to W/H Delivery
Individual Packing
Individual Packing @ Origin
Put Away
Individual Packing @ 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
2121,
2. Operation and Process
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
2. Operation and Process – Warehouse Management
Volume Analysis
Qty Picked from Location
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
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 100.0%
* All Analysis based on Oct, Nov, Dec 09 dispatch data
24,
Class Volume SKU # of SKU
A 80.0% 16.4% 1103
B 15.0% 32.0% 2151
C 5.0% 51.6% 3476
80 % of volume @ 16.4% of SKU80 % of volume @ 16.4% of SKU
Sku Class IDQty
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%
ABC Velocity Analysis
* All Analysis based on Oct, Nov, Dec 09 dispatch data
2. Operation and Process – Warehouse Management
2. Operation and Process – Warehouse Management
Storage Solution – Inventory Slotting : Right Products @ Right Place
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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,
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
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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
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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
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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 assisted5. Possible 15 – 35% increase in productivity6. 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
3131,
2. Operation and Process
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
3333
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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,
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 1000. Then the second sweep of vehicles go out with the general freight, approximately 900-1000 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
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 Email
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
3636,
2. Operation and Process
3737,
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
BenefitsCurrent IT Structure : Samsung – Schenker Interface Diagram
38,
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
G-LOG
PLANSPLANS
CHOOSES & BUYSCHOOSES & BUYS
TRACKS & MANAGESTRACKS & MANAGES
SETTLESSETTLES
GENERATESGENERATES
TMSPLANSPLANS
CHOOSES & BUYSCHOOSES & BUYS
TRACKS & MANAGESTRACKS & MANAGES
SETTLESSETTLES
GENERATESGENERATES
TMS
Event Updates
DestinationSchenker Warehouse
Service ProvidersInvoices
Tenders
WMS
Trucking Orders
Optimal Transport Plan from TMS
Shipment Documents
Reports
(Routes, Service Providers, Truck Types, etc.)
Tracking / managing execution via Web
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 LamIT 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
4040,
2. Operation and Process
2. Operation and Process – Account Management
Account Management Structure : Supporting team for Samsung
GM Major AccountsGM 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 Partners IT/Projects
Program Manager - FG
Program Manager - FG
Program Manager - SSP
Program Manager - SSP
Business Analyst
Business Analyst
Samsung Account Management Team
CEOCEO
42
Contents
Company IntroductionCompany IntroductionI
Schenker SolutionSchenker SolutionII
1.1. Company Introduction – DB SchenkerCompany Introduction – DB Schenker
2.2. Why DB Schenker?Why DB Schenker?
SummarySummaryIII
1.1. Infrastructure – SYD WarehouseInfrastructure – SYD Warehouse
2.2. Operation and Process ReviewOperation and Process Review
1.1. Inbound ManagementInbound Management
2.2. Warehouse ManagementWarehouse Management
3.3. Transport ManagementTransport Management
4.4. IT ManagementIT Management
5.5. Account ManagementAccount Management
43
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,
Why DB Schenker : Premium Provider of Integrated Forwarding & Logistics
3. Summary
45
Thank you
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