Logistics of Samsung

1. Samsung's Export/Import logistics process Diagram:

Logistics is handled in a unique way in Samsung so that it covers many administrative processes. Core
building blocks for components plus combined internally and externally sourced components are
shipped to the assembly factories, either from Korea or directly to the overseas plant by Samsung
Electronics Logitech which handles both inbound and outbound logistics and goes further in handling
payments and processes with outsourced companies working seamlessly with the global ERP system
maintained by Samsung SDS.

2. Samsung distribution system

I. Global Supply Chain: Samsung provide 4PL services, covering not just logistics
operations but consulting and innovation, too

They innovate your logistics by offering comprehensive logistics services that cover all areas of logistics,
including not only air/sea/rail & road transport, warehousing and customs clearance, but assessment &
consulting, industry-specific strategy development and tech-enabled value-added services as well.

 Features: IT-driven, advanced logistics services offered by best-in-class experts

- End-to-end, integrated logistics services
- IT-driven 4PL services
- 24/7 global risk management
- A single platform for easy deployment
 Major Services
- Comprehensive logistics outsourcing: By outsourcing all logistics operations of their customers,
they make our global sites more connected and create synergies. Also, their single contact point
enables an efficient logistics management.
 - Logistics assessment & consulting: With the assessment toolkit created based on their
experience and know-how in global logistics operation, they analyze your end-to-end logistics
process and system to help improve operational efficiency.
- Activities for innovation: Their experts perform a range of activities to innovate your logistics,
including operation optimization and strategic planning. They also provide value-added services
to help you grow your business.
- Global risk management: At their Global Control Center (GCC), they monitor your shipments
and track them in real time by transport mode. When problems occur, their Global Control
Tower (GCT) is activated for effective response.
II. Freight Forwarding: Samsung ensure reliable logistics via a close partnership with
global air/sea carriers and forwarders

In their global sites across 37 countries, Samsung SDS provides a wide range of international
transportation services including air/sea freight, express, local transport, and multimodal transport of
combining different modes of transport.

 Features: Their strategic collaboration with global air/sea carriers and forwarders enables them
to provide reliable services
- Seamless visibility
- End-to-end logistics operation based on global reach
- International transport enabled by strategic collaboration
 Major Services
- Air freight/Express: Working closely with competitive carriers in each trade and leveraging their
air freight volume of more than 400,000 tons a year, they offer best-in-class air freight services.
- Sea freight: They offer competitive freight rates by holding tender on a regular basis for an
annual 1.01 million TEU of sea freight.
- Multimodal transport: They provide multimodal transport solutions by combining timeliness
and cost-effectiveness. These solutions ensure shipping routes that best suit your requirements
and flexible supply chain management.
- Local transport: Based on their global network and collaboration with logistics partners, they
offer local transport services for your imports or exports.
- Special cargo transport: With their extensive experience, know-how and SOP in special cargo
transport, they provide IT-based services that best serve your shipment requirements.
III. Warehousing & Distribution: Samsung provide reliable inland transport services
based on streamlined distribution center operation and well-prepared shipping plans

Samsung SDS develops strategies for the most efficient warehousing and transportation operations by
using Cello and the latest IT solutions while shipping and storing your shipments safely and securely.
They also maximize your operational efficiency by using a range of solutions to optimize and innovate
warehouse tasks and processes.

 Features: They standardize a range of warehouse tasks and processes to provide an efficient
warehouse operation
- Strategy development using data analytics
- Tailored warehousing & delivery
- Optimization for greater efficiency
  Major Services
- Logistics network design: Using Cello Warehouse Network Optimizer (Cello WNO), they figure
out the location, size, and number of warehouses that best suit your requirements.
- Warehouse design & operation strategy planning: Their consulting experts with extensive
experiences in warehouse design and operation develop your warehouse strategy and layouts
by reflecting your shipment features, needs, routes, and volumes.
- Warehouse operation & fulfillment: With their industry-specific know-how in logistics operation
and IT-enabled Cello platform, they standardize a range of warehouse tasks and processes to
provide an efficient warehouse operation.
- Transportation: Based on their analysis of vehicles, routes, and delivery history, they come up
with delivery plans to ensure the most effective operation and provide reliable, on-time
delivery.
- Smart warehousing & distribution: they maximize the efficiency of warehousing and delivery
operations by adopting optimization algorithms and the latest IT solutions.
- Special cargo transport services: they guarantee safe transport of your perishable shipments,
pharmaceuticals, dangerous goods, and fragile or high-value goods from departure to arrival by
using equipment for special cargo transport.
IV. E-Commerce: Samsung offer e-Commerce logistics services optimized for cross-border
online sellers

For countless businesses and sellers out there seeking bigger opportunities in today’s global e-
Commerce market, Samsung SDS provides logistics services specialized for e-Commerce retailers. While
they take care of all e-Commerce logistics operations including automated order creation, delivery,
customs clearance, fulfillment and returns management, e-Commerce sellers can fully focus on product
management and marketing.

 Features: With their freight forwarding platform for cross-border e-Commerce, they make
things easier for e-Commerce retailers
- E-Commerce freight forwarding platform
- Integration with global online malls
- Working with best carriers in each country
- Tracking page for customers
 Major Services
- International express shipping: Working with various express carriers, including UPS, FedEx,
Sagawa, SF, and EMS, we provide door-to-door express shipping services.
- Shipping to Amazon FBA warehouses: They get your large shipments delivered to Amazon FBA
warehouses in the U.S., Japan and others.
- Fulfillment services: At Samsung SDS warehouses, they provide a range of fulfillment services,
such as storage, packaging, and labelling. You can get your packaged shipments delivered right
away by using our int’l shipping.
- E-Commerce export declaration: They handle export declaration for you by partnering with
professional customs brokers, guiding tricky parts of the process, such as finding HS codes and
setting items subject to declaration.
 - Reverse logistics: Returns are costly to an operation. They help you reduce return costs by
collecting return shipments to transport them together. Customs clearance is made easy with
their help in return content matching.
- Open API integration: They offer open API for integration with different marketplaces, shopping
websites as well as different solutions like WMS and ERP. This reduces hours spent doing
manual tasks, thus minimizing errors.
V. Project Logistics: Samsung ship your special cargo with an optimal transport mode to
final destination safely and quickly

Combining our long-standing experience and expertise in project logistics, we select the mode of
transport that best fits your shipments. They also guarantee on-time transportation through micro-
management of shipping progress on their logistics platform Cello.

 Features: Samsung transport different types of cargo safely and securely by leveraging their
experience, expertise, technology capability, and global network
- Lead time reliability through micro-management
- Extensive experience in project logistics
- A dashboard for integrated transportation management
- A collaborative system based on global network
 Major Services
- Equipment transport: They transport your shipments sensitive to temperature, humidity, shocks
or lights with special equipment to minimize potential disruptions. Their transportation strategy
also helps reduce costs.
- EPC (Engineering, Procurement, Construction) transport: With their expertise in heavy and
oversized cargo transport, they ship them safely, using airplanes and vessels that best fit the
cargo type. Their integrated dashboard helps them ensure on-time transport.
- Bulk cargo transport: Using special equipment and infrastructure suited for each cargo type,
they transport your bulk goods responsibly. Their global reach allows us to secure vessels right
on time and provide safe transport.
3. Inbound logistics and Outbound logistics
I. Inbound logistics
Inbound logistics refers to the inflow of goods and services into business operations. Every large
business in the tech industry works with thousands of suppliers around the world. It needs to source
material from various corners of the world. Samsung Electronics is a multinational conglomerate that
has more than 2500 supply chain partners. For a large company with global sales presence, it is essential
to manage logistics strategically, since logistics forms the backbone of their supply chain. Samsung’s
supply chain is mostly located in Asia. Apart from that, its suppliers are also located in the US and the
UK.

Samsung has a very strong logistics arm. Its inbound as well as outbound logistics are managed by its
integrated logistics subsidiaries like Samsung SDS and Samsung Electronics Logitech (SELC). Samsung SDS
was founded as the ICT arm of the Samsung group in 1985. On the other hand, SELC is an integrated
logistics management agent that separated from the logistics arm of Samsung Electronics in 1998.
Samsung sources raw materials from its suppliers located in Asia and other regions. Its logistics
subsidiaries bring the raw material to its manufacturing and R&D locations. Both the firms mentioned
above use their strong logistics and digital capabilities to manage inbound logistics for Samsung.
Samsung’s logistics subsidiaries have strong logistics as well as digital capabilities that allow them to
cater to the firm’s logistics and supply chain management as well as distribution related needs
efficiently.

II. Outbound logistics

Outbound logistics refers to the outward flow of goods and services from the company or simply put it
is the movement of goods and services from the company to the market. Samsung is South Korea’s
largest company. It makes and sells a wide range of products from smartphones to consumer
electronics, semiconductors, NAND flash memory and television as well as displays.

It has established seven manufacturing centers in various corners of the globe where it manufactures
the products it sells. Since Samsung is a global brand, the products manufactured in its manufacturing
and assembly locations are delivered from there to different markets throughout the world.

Samsung has integrated subsidiaries to take care of the entire logistics function including inbound and
outbound logistics. Apart from bringing raw materials from the suppliers, these subsidiaries also take
care of the outbound logistics. They transport the finished goods to distributors and resellers
throughout the world.

The two leading logistics subsidiaries of Samsung are Samsung Electronics Logitech (SELC) and
Samsung SDC both of which were initially a part of the core Samsung group. Samsung Electronics
Logitech alone transports products made by Samsung Electronics to around 120 countries throughout
the world. Apart from that, it also provides distribution and sales support to Samsung Electronics for the
sales and distribution of its products to customers worldwide.