1 1

Collaborative Planning to Provide Stability

June 2010

2 2

Agenda

Steps for Collaboration Implementation

Pre-Collaborative State

Agenda

Post-Collaborative State

Questions

3 3

4 4

Pre-Collaborative State

Forecasting

• Limited accuracy

• Lack of information

Production Planning

• Plan must be locked further out than desired

• Increased bullwhip effect

87

73

83

90 95 96

89 85

91 98

93

60

70

80

90

100

Accura

cy

(%)

Month 1 Month 2 Month 3

5 5

Pre-Collaborative State

Order Preparation L/T

• Reduced time to pick, prepare, and ship orders

• Reactive mode

• Queuing for transportation optimization is not feasible

Days Of Sales

• Excess carrying cost

• Greater exposure to obsolescence

< 3 hrs

5%

3-6 hrs

9% 6-12

hrs

24%

> 12 hrs

63%

Order Preparation L/T Weeks of Sales

02468

1012

6 6

Steps for Collaboration Implementation

Customer

7 7

Material Management

Operation Optimization

Delivery CPFR

Improved forecast

and order processes

Implement Safety Stock to support operations

Convert Planning

from As-Is to To-Be

Improve OTQR

Steps for Collaboration Implementation

Phase I Phase II Phase III Phase IV

8 8

Present Replenishment

Partner

View

Forecast

Partner Samsung

Production

Plan

Shortage/

Stock out

Poor Supply Visibility

Target Replenishment

Consensus Forecast

Partner Samsung

Production

Plan

Expected

Supply

Improved Supply Visibility

9 9

Steps for Collaboration Implementation

Collaboration

Sales

IT

Business Planning

Operations

QA/Eng

10 10

Post Collaborative State

• Plans integrated with supply chain partner • System-System integration • Exception-based planning & mgt. • Risks and rewards are shared between partners (KPIs)

60

80

100

Fore

casting A

ccura

cy

Ord

er Pre

p L

/T

< 3 hrs

1%

3-6 hrs

5%

6-12

hrs

13%

> 12 hrs

81%

02468

101214

Weeks

of

Sale

s

11 11

Questions

THANK YOU!