Samsung SDS

Copyright © 2014 Samsung SDS Co., Ltd. All rights reserved

Copyright © 2014 Samsung SDS All rights reserved 2

Strategy &

Planning

Our Solution

Logistics Controlling

Logistics Execution

Fundamental

LSP Sourcing, Forwarding/Transportation/Warehouse Management

Billing, Contract, Admin, MDM

Visibility/KPI/Cost Management

Global SCM Planning,

Global Logistics Master Planning

Supply

Chain

Planning

Logistics

Execution

* MDM: Master Data Management

Cello is an integrated Supply Chain & Logistics solution

encompassing all areas from SCM planning to logistics execution.

Copyright © 2014 Samsung SDS All rights reserved 3

Our Service Offering

4PL

Service

• Supply chain end-to-end consulting service

• Analysis of client status and requirements

• Offering work process improvement measures and business strategies

Consulting

Logistics

& SCM

• Service to sell/implement Cello solutions

• Offering solutions with functions configurable for client needs

• Providing Cello-based SCM and logistics best practices

Solution

Integrated

SCL

• Ensuring infrastructure for global logistics operation (110 sites in 21 countries)

• Supporting multi-modal transportation in diverse industries

• Offering logistics management optimization services Outsourcing

Global

Logistics

Diversified 4PL services are provided based on Cello and the global logistics

operation know-how.

Copyright © 2014 Samsung SDS All rights reserved 5

Cello consists of 9 suites specialized for SCM and logistics.

Overview

Controlling

Fundamental

Strategy & Planning Execution

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Benefits Integrated inventory

strategy establishment

Logistics profit

optimization

Optimal allocation of

logistics resource

To be secured

Logistics Execution

Supply Chain

Planning

• Integrated sales, supply and inventory strategy

• Global sales and production plan on a weekly basis

• Integrated logistics strategy

• Optimized logistics operation plan by location on a daily basis

Supports feasible SCM plans and optimal logistics resource planning

from an integrated perspective of SCM planning and logistics execution.

Intelligence Suite Supporting Area Main Functions and Features

• Determines the optimal inventory level by location using demand forecast and service level

• Supports logistics resource allocation decision making for profit optimization

• Provides appropriate logistics resource levels and resource status based on daily transportation demand

SCL Strategy

Inventory

Optimization(IO)

Profit

Optimization(PO)

Demand Sensing Demand Shaping

GLMP (Global Logistics Master Plan)

Resource

Planning

Route

Planning

Demand

Profiling

Copyright © 2014 Samsung SDS All rights reserved 7

• Forecasts demand, establishes sales plans and manages demand priorities through market and client data analysis

• Establishes global supply plans by taking into account production capacity and material constraints

• Maintains supply and demand balance and supports a single plan at the enterprise level

• Assigns multidimensional sales goals and provides real-time order and delivery

Planning Suite Supporting Area Main Functions and Features

Benefits

Global Supply Plan Establishment

Volume Available for Sales

Shipping Plan

Plan/Performance Analysis

Goal/Plan Analysis Action Plan

Establishment

Sales and Operations Planning (S&OP)

Consensus Forecasting

Demand Prioritizing

Demand Planning (DP)

Product Distribution to Clients

Order Promising

Order Promising (OP)

Master Planning (MP)

Integrated SCM strategy

establishment

Optimized global

resource operation plan

establishment

Real-time client order

and optimal delivery

management

Forecasts market demand for products and establishes global SCM

operation plans optimizing resource utilization.

Copyright © 2014 Samsung SDS All rights reserved 8

LSP sourcing cost

reduction Fair LSP selection

Management time

reduction Benefits

Supports selection of the best Logistics Service Provider (LSP) for logistics

contracts, taking into account air, sea and multi-modal transportation.

• Schedule planning

• Evaluation criteria establishment

• Target price setting

• Evaluation item/standard registration

Bidding Strategy Establishment 01

• RFI/RFP/RFQ processes using standard templates

• LSP evaluation based on evaluation criteria

• Simulations to select preferred LSPs

Bidding Execution 02

• Counter offer

• Negotiation result management

• Final LSP selection

Negotiation and Selection 03

Select LSPs to send RFI

Select LSPs to send RFP(RFQ)

Select preferred LSPs

Select the final LSP

Sourcing Suite Supporting Area Main Functions and Features

• Provides one-stop global services such as standard templates by transportation mode and zone, monitoring, etc.

• Equipped with an engine that is able to respond to various business requirements

• Interfaces bidding history management system with contract system

Copyright © 2014 Samsung SDS All rights reserved 9

Global

Trade

Suite

B/L, Shipping Information, Settlement

S/R

Manifest

Transportation Information

S/R*

B/L**

S/R

Transportation Information, B/L

Invoice/Packing List, B/L

Customs Information

Trucker

Forwarder

Carrier

Customer

Customs

Increase in international

transportation task

efficiency

Ensuring transparency

in logistics cost

Automation of documentation previously managed manually

Benefits

Global Trade Suite Supporting Area Main Functions and Features

Supports integrated forward tasks based on optimal processes to efficiently

manage all areas of complex international transportation.

• Supports tasks relevant to international transportation import/export/customs clearance and ensures real-time visibility

• Enables optimized multi-modal transportation planning and execution

• Conducts contract-based shipper and LSP settlement tasks

• Performs EDI-based online export & import tasks

* S/R : Shipping Request

** B/L : Bill of Lading

Copyright © 2014 Samsung SDS All rights reserved 10

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5

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6

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Warehouse Suite Supporting Area Main Functions and Features

• Provides integrated management functions for warehouses, docks, yards and gates

• Operates warehouses in real time by providing a work environment using PDAs and smartphones

• Enables a quick response to client orders and performance-based settlement

• Provides user-friendly UIs using 3D, the dashboard, etc.

• Verifies effectiveness of strategies in use to suggest optimal inventory positioning

Benefits System cost reduction by

integrated management

of logistics centers

Ensuring visibility

from entering to exiting

Maximization of

warehouse operation

efficiency

Provides standardized and efficient operation systems by establishing

various tasks and processes in distribution centers.

1

7

7 Information of Goods to be Issued

8 Stock Replenishment

9 Wave Planning

10 Picking 11 Loading 12 Goods Issue

Goods Issue

Process

1 Information of Goods to be Received

2 Entering 3 Unloading 4 Goods Receipt/ Tally

5 Cross Dock 6 Stacking/ Storage

Goods Receipt

Process

Copyright © 2014 Samsung SDS All rights reserved 11

Reduces logistics transportation cost and improves service levels based on

know-how of the global integrated logistics operation.

Transportation Order Management

Transportation Plan

Transportation Resource Selection

Transportation Order/Execution

Optimal transportation

plan establishment by

transportation mode

Increase in flexibility

in transportation

resource selection

Efficient transportation

tariffs management Benefits

Transportation Suite Supporting Area Main Functions and Features

• Provides convenience in transportation order management

• Offers various functions to optimize transportation plans

• Provides functions to select resources fit for transportation environments

• Offers functions for on-time transportation execution management

• Enables a flexible response to transportation performance management

• Transportation Order Receipt/Creation

• Normal/Return

• CPO

• Auto Planning

• MQC

• Booking

• Fleet Management

• Tender

• Direct Dispatch

• Transportation Order

• Movement/Acceptance

• Shipping Order

Transportation Charge Management

• Tariff & Rating

• Voucher

Transportation Performance Management

• Tracking

• Actual Performance

• IOD Management

• POD Management

Copyright © 2014 Samsung SDS All rights reserved 12

Global Supply Chain & Network

Dashboard Mobility

Analysis

Logistics Track &Trace

Event/ Alert

Supply Chain

Monitoring

Logistics Total Cost

Data Sensing & Collecting

Increasing monitoring efficiency and response capability

Ensuring supply chain

visibility

Logistics management

efficiency maximization Benefits

Analytics Suite Supporting Area Main Functions and Features

Performs logistics execution tracking management, gathers execution data

and provides various types of analysis information.

• Offers end-to-end real-time visibility using new technologies

• Provides KPIs for performance management and multidimensional history analysis

• Provides location-based service data analysis based on Big Data Analytics

• Offers diversified analysis of logistics cost taking into account logistics attributes

Copyright © 2014 Samsung SDS All rights reserved 13

Logistics process

enhancement

Internalization of work

knowledge and

experience

Enhanced risk

response

Knowledge Management and Use Monitoring and Control

Logistics Standard Process Execution and Risk Management

• Standard procedures and regulations

• Work plan establishment

• Methodology and template

management

• Logistics task execution

• Risk and malfunction management

• Knowledge asset and document

management

• Process improvement

• Task execution error improvement

• Best practice sharing

• Task execution monitoring

• Process monitoring

• Integrated control operation

Benefits

Work Management Suite Supporting Area Main Functions and Features

Supports logistics execution based on standard process, risk management,

integrated task status monitoring and knowledge asset management.

• Establishes and rolls out global logistics operation standard

• Enables integrated control for global logistics hubs

• Monitors work status and establishes output as assets, thereby supports work enhancement and the virtuous cycle system

• Provides measures to automatically detect risks and malfunctions and to manage them

Work Management

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Overall increase in

logistics system

operation efficiency

Reliability improvement

and increase in

work efficiency

Fast and accurate

settlement and logistics

cost reduction

Intelli- gence

Planning Sourcing Ware- house

Trans- portation

Global Trade

Analytic Work

Interfacing externally (Clients, LSPs, sea, air and inland transportation, ports, and customs agencies)

Common Service

Contract Management Order Management Settlement Management

Base Service

Admin Master Data Management RFID

Interfacing (EDI)

Cell

o

Co

mm

on

Su

ite

Benefits

Common Suite Supporting Area Main Functions and Features

Supports Cello management systems and operation environment and

provides a common service infrastructure for logistics execution systems.

• Implements a data integration and management system

• Standardizes templates and manages contract history

• Facilitates integrated management for orders including order creation/distribution/control etc. (Control Tower)

• Enables integrated settlement management

Copyright © 2014 Samsung SDS All rights reserved 16

Why Cello

Offers solutions

encompassing

all areas from SCM planning

to logistics execution

Implements single-platform-

based solution systems

Provides Cello-based

consulting and logistics

outsourcing services

01 02 03

Client A

Client B

Client C Single Platform

Full Coverage

IO

OP

MP

GLMP

S&OP

DP

TMS

WMS

FIS

PO

EBMS

BMS

CMS

…

MDM

…

…

...

Provides optimal

solutions through

logistics and

SCM consulting

On-demand Offerings Cello provides diverse solutions and services customized for client needs.

Copyright © 2014 Samsung SDS All rights reserved 17

Why Cello

Applies big data analysis

techniques for client demand

management

Implements functions in the

optimization algorithm

techniques

Provides IoT *- based freight

location tracking and risk

detection functions

01 02 03

Demand forecast based

on unstructured data such

as customer interests and

in-store circulation as well

as SNS and search words

NOS (Network Optimization

System)

selecting the most optimized

logistics network

WOS (Warehouse

Optimization System)

maximizing the load

efficiency of distribution

centers

Real-time detection of

abnormalities in

location/temperature/ humidity

using IoT technologies

* IoT : Internet of Things

SNS

Store Information

Search Words

Retail Store

Distribution Center

Delivery Customer

Leading-edge Technology Cello applies state-of-the-art technologies in SCM and logistics.

X

X

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Why Cello

01 02 03

Consulting and implementation

experiences:

Around 450 cases

Consulting experiences

• Establish logistics

operation and business

strategies

• Establish information

strategies

• Carry out feasibility studies

Consulting

Standard Operation

Procedures:

Around 1,700 guides

Extensive knowledge

on logistics:

9,000 assets Operating

expert training

and expert pool

Systems

PO Profit Optimization

IO Inventory Optimization

GLMP Global Logistics

Master Planning

Logistics BPO

Internalizes SCM and logistics

knowledge and experiences

accumulated from diverse

industries

Applies “Standard Process

for Logistics Operation” built

up through global logistics

operations

Offers new concept solutions

integrating planning and

execution

From “Best-Practice” to “Next-Practice” Cello offers both advanced proven processes and new business processes.

Copyright © 2014 Samsung SDS All rights reserved 19

Automobile / Machine & Heavy Industry / Rubber Electronics / Electricity / Semiconductor / Communications

Reference

Based on Cello, we have delivered real supply chain logistics benefits to

more than 140 customers and 450 consulting and implementation projects in

various industries.

Chemistry / Pharmaceutical / Oil / Cosmetics 3PL / Logistics / Transportation

Food / Resort / Apparel Retail / Shopping Mall Government

Copyright © 2014 Samsung SDS All rights reserved 20

Reference

Project Description

• Client: A leading material company in Korea

• Period: 2011.08 – 2012.10

• Modules Implemented: DP, MP and S&OP in 2 business units

• Reestablishment of SCM taking into account changes in demand as its business matured and adequate inventory levels – DP, MP: Global vendor’s solution → Cello DP, MP

– S&OP: Newly implemented

01 • Vulnerability in management of actual

demand

• Insufficient processes to connect plans

• Low execution rate compared against planning

• Inadequate systems to monitor execution progress compared against planning

The Challenge 02 • Has established feasible plans to interface

planning with execution

• Has set up a system to establish consistent plans for goal/execution synchronization

• Has implemented integrated cross-business-unit and cross-unit-system SCM platforms that flexibly respond to changes in the business environment

The Solution 03 • Planning time drastically reduced

(40 minutes → 5 minutes)

• System-based S&OP meetings (Performance prediction, plan/execution monitoring and real-time displaying of freight issues)

• Increase in production line operation efficiency and a proactive response to supply issues

Benefits

Case Study:

Implementation of a SCM platform integrating planning and execution.

Copyright © 2014 Samsung SDS All rights reserved 21

• Insufficient master data management

• Inadequate processes to interface planning with execution

• Major constraints reflected manually

• Low production visibility

• Has established master data management criteria and implemented management UIs

• Has set up production planning systems interfaced with sales planning

• Has implemented systems to reflect major constraints existing in the production environment of each production facility

• Has secured production visibility through a 16-week procurement plan establishment and plan sharing

• Increase in demand forecast accuracy by establishing sales plans through master data stability and demand forecast management tools

• Ensuring feasible production plans by taking into account major constraints in each production facility

• Improvement of competence in checking constraints including material constraints through daily/weekly plans

01 The Challenge 02 The Solution 03 Benefits

Case Study:

Implementation of production planning systems in order to maximize sales revenue in the CPG industry.

Reference

Project Description

• Client: A leading CPG company in Korea

• Period: 2013.11 – 2014.04

• Modules Implemented: DP and MP (Newly implemented)

• Establishment of SCM process and implementation of solutions to operate feasible sales and production plans by taking into account major constraints

Copyright © 2014 Samsung SDS All rights reserved 22

• Increase in global freight volumes/supply

chain complexity

• A system required to address issues caused

by scattered/disconnected information

systems

• A system required to detect and respond to

malfunctions in logistics

• Cello 8 modules integrated

implementation EBMS (Bidding),

CMS (Contract), BMS (Settlement),

TMS (Routing), VMS (Visibility),

COMS (Cost), MDMS (Master) and

SCLP (Web Portal)

• Establishment of global integrated logistics

systems (Integrated bidding and routing

planning)

• Ensuring centralized infrastructure

for logistics information

• Improvement of operation efficiency

by ensuring end-to-end visibility

01 The Challenge 02 The Solution 03 Benefits

Case Study:

Implementation of best practice logistics systems in the steel industry.

Project Description

• Client: A global steel manufacturer

• Period: 2012.08 – 2014.01

• Modules Implemented: TMS and 7 other modules

• Scope – Requirements analysis and operation process refinement for the HQ,

subsidiaries, and overseas corporations

– Logistics information system implementation

Reference

Copyright © 2014 Samsung SDS All rights reserved 23

• Increase in Showrooming and Webrooming

• A center operation system required to

operate a newly integrated logistics center

• Low logistics visibility and insufficient KPI

management

• Cello Warehouse Suite and Visibility

(Goods receipt management, inventory

management, bonded picking, one-

packing, Visibility, Event and KPIs)

• Automated facility (Autostore)

implementation and interfacing

• Goods information verification and detailed

management through WMS implementation

• Increase in the logistics center space and

operation efficiency through increased work

efficiency by automated facilities

• Implementation of planning-based operation

and control and in-advance event detection

and response systems

01 The Challenge 02 The Solution 03 Benefits

Case Study:

Integrated implementation of center management system and automated

facilities for a new logistics center in the retail industry.

Project Description

• Client: A global distribution company(A duty free shop)

• Period: 2013.11 – 2014.12

• Modules Implemented: WMS, VMS and others

• Scope – The 2nd integrated logistics center

– Logistics information system (Cello) implementation

– Automated facility implementation/interfacing

Reference

Headquarters Smart Logistics Business Division 462-710 20, Tancheonsang-ro 151beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

※cello@samsung.com

offers Global One-Stop Service including

consulting for SCM and logistics business innovation, integrated SCL

solution(Cello) implementation, logistics IT services supporting overseas

logistics operations, etc

For more information, Visit : www.cellologistics.com

Supply Chain & Logistics Consulting

End-to-end consulting services and system

integration across all sectors in Supply Chain

and Logistics

※Contact: Info.consulting@samsung.com

Global Logistics Outsourcing

Integrated logistics outsourcing services by

partnering with 350 companies at 110 sites

in 21 countries around the globe

※Contact: Info.logistics@samsung.com