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Samsung
Ensuring value across the supply chain
Samsung is a leading manufacturer of consumer electronics. The supply chain requirement for all of these goods amounts to a complex and intensive logistics operation.
Davies & Robson was approached to conduct a thorough analysis and benchmarking exercise. The project monitored and analysed the range of supply chain elements entrusted to Samsung’s brown goods’ logistics contractor (Freight Forwarding from UK docks, Warehousing, Administration and Distribution for all brown goods), and reviewed the prevailing charging mechanism and the alternative possibilities.
Davies & Robson calculated a benchmark cost per unit for each activity with no knowledge of the actual charge in place with the current contractor. By this means, comparative costs were generated for labour, distribution, warehousing, management fee and so on, using the Davies & Robson Benchmark Database and, in conjunction with the activity profiles, calculated space and labour requirements together with benchmark delivery costs.
The resulting benchmark data was presented to Samsung, along with a detailed description of the methodology used, and a copy of the cost model, to enable Samsung to continue to track the contract costs whilst volumes were changing over the forthcoming months. On completion of the study, the benchmark cost per unit enabled Samsung Electronics to identify efficiencies that reduced costs.
Samsung has subsequently retained Davies & Robson to carry out a similar benchmarking exercise for their rapidly developing ‘white goods’ business.
www.samsung.com
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