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For Samsung, It’s Personal
 
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The supply chain is a critical success factor for Samsung, and, for Maurits Matthijsse, Logistics Director, Samsung Europe, the level of trust and personal relationship with his logistics service provider is key to this success.

“In terms of what we look for in a supply chain partner, it starts with the people – that is the most important ingredient – quality people, who really understand our business and our thinking, and who are clearly familiar with the logistics arena as well as our market,” says Maurits.

Samsung produces a wide range of consumer electronics and white goods, which means that its supply chain needs also vary widely. Mobile phones, for instance, is a business segment where lead time is critical to not losing market share, so airfreight and express are the essential modes of transport. For white goods, on the other hand, margin is more important, so these tend to go by ocean freight and road freight.

“The more efficient we are in our supply chain, the better our margins,” explains Maurits.

Streamlined processes

Because the length of the supply chain has a strong influence on both lead times and margins, Samsung is shifting production closer to the final market, thereby eliminating the inbound ocean freight part of the supply chain. In Europe, the company already has factories in Hungary, Slovakia and Romania, and is now opening up a plant for white goods in Poland as well.

In other moves to increase supply chain efficiency, Samsung is reducing the number of warehouses in Central Europe, and consolidating volumes into a single DHL warehouse in Slovakia. In addition, Samsung is also pursuing customer requirement rationalization, in which they shift combined delivery orders together on factory pallets, for instance, to avoid repalletizing, while achieving higher load efficiency in their trucks.

In terms of what sets his company apart from its competitors, Maurits explains that Samsung is extremely flexible and fast in its decision-making. This is because it is a young company, with streamlined internal processes, reflecting the Korean management style. “We are willing to do things by trial and error, so, we’ll take a decision quickly and, if it doesn’t work, then we’ll make adjustments and try again.”

 
 
  About Maurits Matthijsse  
     
     
     
 

Maurits Matthijsse, 41, a Dutch national, is in charge of European logistics for Samsung Electronics. In this role, he strives to achieve the most efficient supply chain solutions across Europe for this fast-growing Korean manufacturer of mobile phones, flat screen televisions and home appliances.

Prior to joining Samsung in 2007, Maurits spent seven years with DHL, the last two of which with DHL Global Customer Solutions as a regional customer manager. Maurits was fascinated by logistics and transportation from the very start of his career, which was with KLM, from 1994-1999.

He has a law degree from the University of Leiden, in the Netherlands.

 
     
     
    Value of partnership
Maurits Matthijsse on Personal Drive    
    The way Samsung deals with its service providers is also a bit different than other traditional consumer electronics manufacturers, in his view. “We are more open with each other, in a true partnership,” explains Maurits.

“We really value the relationship we have with DHL,” he continues. “We trust DHL on a strategic level and they have proven to be a reliable partner – not just a service provider. DHL also thinks outside the box, to come up with alternatives and the right service to improve our supply chain, on an operational and strategic level.”

Maurits emphasizes that this partnership with DHL is very much thanks to the people, including Claus Duval, DHL GCS Regional Customer Director for Samsung, “who really understands our business and finds the right solution for Samsung at a competitive cost level,” as well as Guy Elliott, head of DHL Supply Chain for Northern Europe.

This partnership is not just at the European level, but is global, and Samsung appreciates the fact that DHL provides the right resources at the right level, including the DHL global sponsor for Samsung, Hermann Ude, “who is very supportive, at the highest echelons.”

In terms of what drives me professionally, I just love logistics, as well as thinking creatively, out of the box. I like to come up with new, alternative solutions to increase shareholder value – both in terms of increasing sales, but also efficiency.

On a personal level, my family – my wife and three children – are the most important thing to me. I also love Amsterdam, which we live close to, and I like to make the most of what the city has to offer. In terms of sports, I am passionate about skiing, especially off piste.
 
     

Growing together

What Samsung would like to see more of, according to Maurits, is an increased focus on cost, because of the price erosion faced by companies like his in the consumer electronics sector. He also would welcome improved IT transparency and visibility, in order to provide more information about day-to-day execution, to keep his own customers better informed.

Nevertheless, Maurits emphasizes: “We are happy with DHL and their performance is solid.” He adds that Samsung is a growing company, and that, “we would like to see DHL growing the business together with us, going forward.”

 
 
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