e:\DATA\PRESENT2\present for MOEA-2.PPT(01-12-03) P.1 / 50 : / The Supply Relation-ship in between IPO Taiwan & Taiwanese Supplier in China By : Paul.

$Page 1: e:\DATA\PRESENT2\present for MOEA-2.PPT(01-12-03) P.1 / 50 : / The Supply Relation-ship in between IPO Taiwan & Taiwanese Supplier in China By : Paul.$
P.1 / 50

e:\DATA\PRESENT2\present for MOEA-2.PPT(01-12-03)

在台國際採購處與大陸台商的供應關係主講人 : 林賢榮 / 國際採購處總經理

The Supply Relation-ship in between

IPO Taiwan & Taiwanese Supplier in ChinaBy : Paul Lin / General Manager

Philips IPO Taiwan 2001 - 11 - 18

P.2 / 50


Contents

P I / Philips & IPO in Taiwan

P II / Global IPOs Activities in Taiwan

P III / IPO & Supplier’s Relationship

P IV / New Era with New Concept

P.3 / 50


An introduction on Philips

November 2001

P.4 / 50


Global electronics company,

established in 1891 as a lamp

factory

Shares listed on New York, London,

Amsterdam and other stock exchanges

Multinationalworkforceof 219,400employees

Headquarters:Amsterdam

The Netherlands

Results 2000in millions EUR USDSales 37,862 34,864Net income 9,602 8,842

Sales andservicein 150

countries

Royal Philips Electronics

P.5 / 50


Technology Leadership Areas

DisplayDisplay•• Consumer TVConsumer TV•• One-Chip TVOne-Chip TV•• LG.PhilipsLG.Philips•• Light EnginesLight Engines•• 3D medical3D medical

imagingimaging

StorageStorage•• Audio/DVDAudio/DVD•• Optical StorageOptical Storage

modulesmodules•• Consumer ICsConsumer ICs

Digital VideoDigital Video•• TV/DVDTV/DVD•• Set-top boxesSet-top boxes•• TriMedia /TriMedia /

NexperiaNexperia•• RF tunersRF tuners

ConnectivityConnectivity•• WirelessWireless

handsetshandsets•• Set-top boxesSet-top boxes•• Bluetooth ICsBluetooth ICs

P.6 / 50


Philips Product Division

Board of Management

Lighting

Consumer Electronics

Domestic Appliances & Personal Care

Components

Semiconductors

Medical Systems

P.7 / 50


Philips Purchasing Organization/Corp. Purchasing

E-Proc. Programme Mgt. & IS Dev.

Purchasing Process Dev.

Leveraged Purchasing Mgt. &

Support incl. IPO’s

ControllerNPR Progr. Mgt.

Management C.P.

Board of Management

Secretary

HRM Development

Training Product Division

Purchasing Centers

Direct Responsibilities

Functional Responsibilities

P.8 / 50


I nternational

P urchasing

O ffice

Paul Lin27FB, No. 66, Chung Hsiao W. Rd., Sec. 1

Taipei, Taiwan

Tel: 886-2-2382-4546

Fax: 886-2-2382-4544/45

E-mail: [email protected]

WebSite : http://pww.ipo.ptw.philips.com

P.9 / 50


Philips Taiwan Locations

Joint Venture

Philips Organizations

Taipei Head Office :

The Central Services &The Domestic BusinessHeadquarters

Chungli Monitors

Tayuan Lighting

Dapon Color Monitor Tubes

Chupei Glass

TSMC

Kaohsiung Semiconductors

2001 BudgetPersonnel 7,816Total Assets NTD 58.6BSales NTD 238.7B

e:\DATA\PRESENT2\presen for MOEA-2.PPT(01-10-17)

P.10 / 50


產業轉型過程 Changing Pattern of Philips in Taiwan's Business 勞力密集型 Labor Intensive

資本與技術密集型 Capital/Technology Intensive

腦力與知識密集型 Intelligence/Knowledge Intensive

角色轉型 Changing Role of Philips in Taiwan

海外代工 Off-shore Assy Center

國際生產中心International Production Center

• 亞太及全球事業群組織 Asia Pacific & Global Business Management Center• 研發中心 Research & Development Center

0.2 0.6 1.4 1.6 1.6 2.1 2.5 3.4 4.8 7.6 8.2 6.9 9.3

153145

130109

9361

50403735312824191313

0.20.10.30.07

0

100

200

'67 '68 '69 '70 '71 '72 '73 '74 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99

B NT$

P.11 / 50


Strength of Taiwan1. Well Educated HI-TEK

Human Resource

2. Highly Dev. on PC’s being a Leading Multi-Media / I.A. M’fg & Supply Center

3. Towarding High Tech/Capital Involved Industries (Semiconductor Fields)

4. Being the Asia-Pacific Operation Center

5. Being the Supply Center of the Whole Range of MEMORY & LCD’s (Color/Mono)

6. As an Advanced, Creative & Dynamic Country of Elec. Industry & aiming on Volume Q’ty, M’fg. Oriented

P.12 / 50


1-Feb-01

Year 1993 1994 1995 1996 1997 1998 1999 2000 2001Unit (Forecast)

Economic Growth Rate % 7 7.1 6.4 6.1 6.7 4.6 5.4 6.4 5.3

Population MLN. 20.9 21.1 21.3 21.5 21.7 21.9 22.0 22.2 22.3

Total Trading Amount B. US$ 162.2 178.3 215.3 218.4 236.5 215.3 232.5 288.4 315.0

Trading Growth Rate % +5.6 +10.1 +20.8 +1.5 +8.3 -9.0 +7.9 +24.1 +9.2

Export Goods B. US$ 85.1 93.0 111.7 116.0 122.1 110.6 121.6 148.4 165.0

Import Goods B. US$ 77.1 85.3 103.6 102.4 114.4 104.7 110.7 140.0 150.0

Consumer Price Index % 2.94 4.1 3.7 3.1 2.2 2.6 2.8 4.1 3.5

Major Economic Indicators - Taiwan

P.13 / 50


Organization Chart Valid Date : 2001-01-15

International Purchasing Office Prepared by : Paul Lin

Philips Electronics Industries (Taiwan) Ltd.

x3 x4 x3 x2 x3

PCC PCE / PSP PCC / POS COMP Lighting / DAP (F/G)

Outsourcing in A/P FAX DAP (Comp.) SEMI / CDS

Mgr. Dept. Mgr. Sec. Mgr. Sec. Mgr. Sec. Mgr.

Felix Hau Joe Fu Roy Chen Charles Lin Alex Chu (A.I.)

Jerry Liu Gordon Chang Amy Hsu Eunice Chang Jerry Liao

Vicky Han Jane Chiang Vicky Han Sophia Chou

Candy Liu

IPO - TaiwanGeneral Manager

Paul Lin

x14 + 2

IPO Secretary

Edith Kuo

P.14 / 50


Function :

As A BRIDGE in Between Philips Worldwide and Suppliers

Objectives :

• Max. purchasing PROFITABILITY for Philips Worldwide

• Max. Philips organization SATISFACTION

• CO - MAKER - SHIP with Key Suppliers

P.15 / 50


IPO

PHILIPS Taiwan IPO Activities

INFORMATIO

N FLOW

&

P.O.

INFORMATION FLOW

&

P.O.

GOODS FLOW

CASH FLOW

CUSTOMER SUPPLIER

NOTE : “INFO. FLOW” including - Advance / Initial Purchasing, Quality Assurance

(Selection / Auditing / Rating) as well as financing & closing.

P.16 / 50


Business Per Area

2000 ( $135M )

56%

37%7%

25%6%

69%

American Far East Europe

1999 ( $115M )

P.17 / 50


Supplier Number Customer Number

256 138

188

9 59

CHINA TAIWAN ASIA

546 21

82

EURO F.E. & Other Japan N. & S. AM.

P.18 / 50


Distribution of T/O per Product

19%

2%

44%

8% 5%22%

12%

42%

13%

7%

23%

3%

2000 ( $135M ) 1999 ( $115M )

CRT RAM ELEC MECH F/G E/M

P.19 / 50


IPO TURNOVER STATUS(1993 - 2001)

0

50

100

150

200

YEAR 1993 1994 1995 1996 1997 1998 1999 2000 2001

T/O 68 77 104 112 141 150 115 135 139

USD:Million

20 20 19 19 20 18 14 14 14Person

Plan

P.20 / 50


1. Advanced/ Initial Purch. & Procur., even incl. Q.A. are all interactive, like an integrated function of a human body.

2. Package service would be e.g. Quality :

- Selecting, Auditing, Up-grading, Adopting Cost :

- Leverage power of P.D.'s/B.G.'s consolidation Delivery :

- Availability thru well allocation Flexibility :

- Local & prompt contact with supplier Entrusting :

- Diff. service required v.s. diff. site/region3. Side Effects :

PHILIPS in Region of Info. collection Real Customer's of Purchasing To have optimum on communication, traveling & etc. Lubricating any Conflict

IPO Taiwan Working Scope

Customer Friendly,

Footholds

Extended Arm

Effective/Efficient Costs

(OCoO)

(Buffer)

P.21 / 50


NORTH - TOWARD POLICY, JAPAN

Timing (天時 )

Region (地利 )

Personnel (人和 )

- Yen Appreciation

- Near by Taiwan

- Good Friendship

From zero/’93 to USD 5~6M/Now-a-days !

P.22 / 50


PHILIPS IPO TAIWANOUR ADDED VALUE

1. TEAMWORK APPROACH

2. NO COMMUNICATION GAP

3. WELL EXPERIENCED CAPABILITY

4. TAIWAN’S COMPETENCE(TAIWAN, H.K. & CHINA)

5. CONSTRUCTIVE ADVICES (T.Q.R.D.)

6. NON-DISCLOSURE AGREEMENT

7. REASONABLE RECOVERY

8. LEVERAGE POWER FROM ALL PDs NEEDS

9. WIN-WIN TARGET

Your Global Purchasing Partner In Taiwan

P.23 / 50


IPO Taiwan 2001 Slogan

Philips IPO TaiwanTel : 886-2-2382-4546Fax : 886-2-2382-4544

E-mail : [email protected] : http://pww.ipo.ptw.philips.com

We Commit to Deliver

Our BEST !!以客為尊無微不至

P.24 / 50


What’s BEST ??

B usiness

E xcellence through

S peed & T eamwork

P.25 / 50


Global IPOs Activities in Taiwan

P II

P.26 / 50


What are IPOs Activities in Taiwan ?

P II / Global IPOs Activities in Taiwan

P.27 / 50


T/O Maping of W-wide IPOs in Taiwan(2000)

Unit : USD M

50M 100M 500M 1,000M +

PhilipsArp-datacomAlps-Taiwansenatek、 Alpha Data、Aurora、 Kodak、Xerox

Samsung

Sony

GE

AashimaLiaison

Wintop

Hitachi

KQ Taipei

TriGem

Datec

A & A

Nokia

Lucent

Compaq

Apple

Toshiba

Siemens

Epson

Intel

HP

250M

P.28 / 50


W-wide IPOs in Taiwan’s T/O (2000 v.s. 1999)

USA85.5%

Jpn10.2%

Euro4.3%

unit : USD B

Source： OCIID/MOEA

Top 10 Top 5 Top 5

USA's Japan's Euro's

1999 20.14 1.86 1.04 23.04

2000 29.60 3.52 1.52 34.64

2000 / 1999

$ Growth (%)

Items Sub TTL

47% 89.2% 46.20% 50.3%

P.29 / 50


Remark ： Year 2000

a. TOP 10 US IPO ─ APPLE 、 A&A 、 COMPAQ 、 DELL 、GATEWAY 、 HP 、 IBM 、 INTEL 、 INGRAM MICRO 、SOLECTRON

b. TOP 5 Japan IPO ─ FUJITSU 、 HITACHI 、 MITSUBISHI 、 NEC 、 TOSHIBA

c. TOP 5 European IPO ─ AASHIMA 、 ACTEBIS 、 ERICSSON 、 NOKIA 、 SIEMENS

d. W-wide IPOs in Taiwan for T/O 37.6B purchased in 2000 (x66 companies)

P.30 / 50


Global Share of Taiwan’s 3C’s(in 2000)

52.5

44.4

74.0

24.5

38.9

92.5

77.0

53.7

70.2

0

20

40

60

80

100

Source : MIC, Taiwan

P.31 / 50


How IPOs to Evaluate Partner ?

P.32 / 50


Satisfaction of OEM / ODM Trade-terms

5 0

2 7

2 3

1 5

5

4 5

4 5

3 4

4 1

Source : MIC, Taiwan

50 45 4541

34

2723

155

P.33 / 50


0 1 2 3 4 5 6 7 8 9 10

Price

FlexibilityDelivery Lead Time

LogisticTime to Market

QualityInfrastructure

R&D ResourceGovernment Incentive

Taiwan Japan Korea

Good

0 10

Fine

5

ExcellentNG

3

1

2

IPOs Assessments Among Supplies in Taiwan / Japan / Korea

P.34 / 50


IPOs Views of Taiwan’s Overall Competition

People Level / 16 Supply Chain / 16 Transportation / 9 Customs Clearance / 9 Basic Infrastructures / 8 B2B Environment / 6 Customs Duty / 6 Governmental Efficiency / 2 Others / 2

Governmental Efficiency/24 Transportation / 15 Customs Clearance / 14 Basic Infrastructures / 12 Customs Duty / 11 B2B Environment / 8 Supply Chain / 7 People Level / 4 Others / 1

Better Points Need to Improve

P.35 / 50


Conclusion (I)Est. USD 7 ~ 12B / year being increased of Global IPOs b

uying from Taiwan. (e.g. in 2000 is $37.6B & 2001 aiming $47.6B)

Major items are : NB PC, Monitor, MPCBA, IC, LCD, DVD/CD’s Barebone, DTPC, DSC, M.P., I.A. … etc.

W-wide top IT Industry companies : Compaq, IBM, HP, Dell, Intel, Toshiba, Sony, NEC, Ericsson, Nokia, Samsung, Philips… etc. are all purchasing in Taiwan, grown-up Taiwan’s international position.

P.36 / 50


Taiwan Government is supporting on the fields of IC, LCD, Wireless, Communication, IA… etc. there are coping with IPOs interesting on purchasing.

Per MIC’s forecast, major Ind. m’fg values are :

- H. Ware $ 30.2B ($23.2B) - Semi. $35B ($22.4B) - FDS $5.6B ($2.7B)- Network $ 4.5B ($3.0B) - W. Comm. $ 3.1B (0.9B) - IA $ 3.3B ($1.4B)

Taiwan’s Competences : Price, Quality, Flexibility, Time to market, Speed of new development … etc towarding to HVE production would be sustained as w-wide leading capabilities.

Conclusion (II)

2002 v.s. (2000)

P.37 / 50


IPO & Supplier’s Relationship

P III

P.38 / 50


Bridging Customer & Supplier- On top of the business prime-mover / shaker

- IPO would be the supporter to supplier on the followings :

1. Schedule Arrangement

2. Accommodation Booking

3. Agenda Preparation

4. Facility Provider

5. Communication Supporter

6. Minutes Taken

7. Action Follow-up

8. Tooling Control

9. Pre-qualification

10. Technical Advisor

11. Troubles Shooting

12. Cost Analyst

13. Logistics Arrangement

14. Conflict Buffer

15. Payment Endorser

16. Multi-winners Creator

e:\DATA\PRESENT2\presen for MOEA-2.PPT(01-10-17)

P.39 / 50


SWOT Analysis – Strength

1. IPO as special A/C for Sales

2. Global Logistics Exp./ Operation

3. Materials Localization

4. Lasting International Competition

5. Knowledge Base Service Oriented(SCM)

6. Leading Professional Skill in w-wide

(Tooling Design / Making)

P.40 / 50


SWOT Analysis - Weakness

1. Less Mass Production in Taiwan

2. Speediness of Basic M’tls Dev.

3. Less advanced IT in Communication

4. Less control on sub-sub-contracting

P.41 / 50


SWOT Analysis - Opportunity

1. MIC - Low Cost, High Volume

2. Emerging High end / Tech. Product Dev. (Opto-Elec., LCD’s, IC’s…)

3. Expecting “Large three links” being opened ASAP

4. Enlarged Biz / Mktg Scope – WTO’s

P.42 / 50


SWOT Analysis - Threat

1. Raising up Operation Costs (O/H)

2. Forcing to Close Taiwan’s Operation

3. Personnel Mg’t in Big Challenging

4. Social Unrest Crossing Strait

5. Creating Potential Local Competition

P.43 / 50


新紀元與新思維 P. IV / New Era with New Concept

1. 順應時代潮流To Follow Times Trend

2. 創造競爭優勢To Create Competitive Power

3. 改變運作方式To Change Operation Principle

P.44 / 50


電腦化 Computerization

改善與創新 Improvement & Innovation

知識管理 Knowledge Management

合縱與連橫 Mergence or Alliance

專業代工相對垂直整合 CEMS v.s. Vertical Integration

客戶滿意與價值鏈 Customer Satisfaction & Value Chain

時代潮流 (Times Trend)

P.45 / 50


掌握成本 Total Cost Owner-ship

+ +

獲利能力 Ensure Profitability

- 藉由 thru. the way of –

競爭優勢 Competitive Power

P.46 / 50


營運效率 Operation Efficiency * 技術 Leading Technology * 管理 Better Managements

與 and

策略地位 Strategic Position * 特色 Characteristic * 服務 More Services * 價值 Added Value

競爭優勢 Competitive Power

P.47 / 50


歐盟 / 歐元對世界 / 美元 EEC / EURO v.s. W-wide / USD

交易價格 FOB CIF DDU (Delivery Duty Unpaid)

付款條件 Payment Terms L/C D/A O/A 60 days

運作方式 Operation Principle

P.48 / 50


配套供應 ,合併出貨 Package Deal & Consolidation

廠商庫控 Consigned Stock Vendor Hub VMI (Vendor Managed Inventory)

線上交貨 STL (Ship to Line)

運作方式 Operation Principle

P.49 / 50


改變是一條不變的路Changing is a way of Un-change

用心看近用腦想遠Near: by Heart Far: from Brain

因此 so that

P.50 / 50


敬請指教再會

e:\DATA\PRESENT2\present for MOEA-2.PPT(01-12-03) P.1 / 50 : / The Supply Relation-ship in between IPO Taiwan & Taiwanese Supplier in China By : Paul.

Documents

oriented slide

philips worldwide

new concept slide

key suppliers slide

person plan slide

p i philips ipo

changing pattern of

taiwan tel