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Overview of Samsung Electronics Operations and Logistics in Romania

This document provides a comprehensive introduction to Samsung Electronics' logistics and operations in Romania. It outlines the company's role as a leader in the market, detailing logistics services, including inland transportation, customs clearances, and distribution across Europe. It examines the local manufacturing capabilities, such as LCD monitor and TV assembly, as well as highlights issues and expectations related to Romania's port infrastructure and customs efficiency. The report discusses the competitive landscape and future steps for optimizing supply chain processes.

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Overview of Samsung Electronics Operations and Logistics in Romania

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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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