You manage your business. We manage your electronic supply chain. DB SCHENKERelectronics

You manage your business. We manage your electronic supply chain. DB SCHENKERelectronics

Our core business: The supply chain side of your business. At DB Schenker, we have a very simple understanding of teamwork: You manage your core business. We manage your supply chain. As a supply chain specialist, we don t simply move your goods. Instead, we execute your supply chain leveraging a broad spectrum of value-added services seamlessly integrated into even the most complex business models. This approach covers your entire supply chain from inbound and manufacturing supply management, to distribution of finished goods - and the support of your after-market activities. The supply chain becomes a value chain, optimising your business and leveraging a whole range of cost saving opportunities inspiring innovation and new business potential. While our solutions are tailored to you, they are based on market leading solutions for the global economy. Our customers include many prominent global companies in our core industry segments. Consequently, our employees have vast industry-specific expertise at their fingertips and many years of experience in the planning and implementation of contract logistics services and solutions. We are not only experts in logistics, but we also possess an in-depth understanding of the market you are serving, leading to true win-win partnerships. Proven global solutions for your supply chain. The electronics market is a very competitive, rapidly evolving and consistently growing market. This challenging environment requires a lot from brand owners, manufacturers, vendors and service providers to succeed in maintaining market position and, furthermore expand. Similar to other markets, electronics faces challenges such as seasonality, consumer trends and environmental considerations. In addition, shifting manufacturing centres, consumption, emerging market unpredictability and constant technological progress are unique challenges to the Electronics market. Being successful in this global environment requires the best logistics services you can find. Our solutions are structured to assist you in coping with these challenges and leveraging them to your benefit. We help you prepare for tomorrow s world today! We support you in expediting your flow of materials and new products, accessing new markets across the globe, developing new channels of distribution and forging new value-added relationships with your suppliers and your end customers. This approach is critical in the innovative, fast paced high-tech industry where an agile and efficient supply chain is vital. 2 3

How does it work? One of the first 3PLs to develop a standardised PVMI solution. DB Schenker s Production Vendor Managed Inventory (PVMI) Solution provides specific processes and tools to meet the different needs of OEMs, contract manufacturers and component suppliers. This solution includes vendor hub management at origin, local & cross border transportation, destination supply hub operation as well as plant manufacturing support. With a client list including some of the most respected brands in the electronics market and with over sixty VMI implementations worldwide, our PVMI solution is proven to reduce inventory carrying and liability costs while increasing the velocity of customer orders and vendor replenishments. We achieve these benefits by establishing global VMI hubs linked into a network using DB Schenker s IT solutions combined with global support and operations teams. Production vendor managed inventory With more than 50 proven PVMI operations, DB Schenker delivers just-in-time replenishments to manufacturing partners. Core competencies are material management, inventory ownership, and end-to-end visibility as well as a global 24/7 customer service center. Shifting the inventory costs and liability to the vendors Vendors Vendors supply components to the DB Schenker PVMI hub according to forecasts, purchase orders, or inventory alerts. Inventory costs and liability remain with the vendors until the material is consumed by the manufacturing partner. Vendor A Vendor B Vendor C CSC The multilingual global customer service center is the single point of contact for all involved parties, especially for the hundreds of vendors. All kinds of enquiries, requests, and case resolutions are tracked and solved via the CSC. Our experienced and personalised CSC operates 24/7 and can be reached via web portal, mail, and phone. Inbound Outbound PVMI hub The PVMI hub seamlessly handles receiving and shipping on behalf of the vendors. The complex inventory managent, which includes ownership tracking and title transfer, as well as timely delivery to the production line, are key components of the PVMI solution. Discover our PVMI Values. Vendor Management services including on-boarding, billing and reporting Real time point of stock consumption notification enabling payment on consumption invoicing and optimising cash flow End-to-end Inventory visibility from the Supplier to the Contract Manufacturer enabling the proper stock replenishment decisions. Global CSC multilingual Customer Service Centre operating 24/7, dealing with inquiries, case resolutions/ tracking and reporting. Complete suite of B2B messages with automated linkage - to manufacturing partners, vendors, carriers as well as third party billing support. Vendor DB Schenker PVMI Hub Ownership transfer after consumption Manufacturing partner The PVMI concept primarily is about freeing up inventory carrying costs from the manufacturing partner and transferring it back to the vendor. This allows the manufacturing partner to utilize this money in other areas as they pay for components only as they are consumed, versus paying when the components leave the vendors origin. Another value is the shifting of the liability of loss (freight and hub) to the vendor. Global IT visibility DB Schenker guarantees end-to-end visibility across the entire supply chain through our robust and reliable IT infrastructure. It provides ownership transfer information, hub inventory visibility, min./max. alerts, centralized KPI, consumption trend analysis, and vendor performance management. DB Schenker proactively monitors system connectivities among vendors, carriers, and the manufacturing partners. Buyer Manufacturer Manufacturing partner The manufacturing partner produces material to a building plan; from this a material request is sent to the PVMI hub, upon which components are picked, packed, and delivered according to the manufacturing partners requirements. 4 5

What your customer needs, when they need it and where they need it for the lowest cost possible DB Schenker has been providing focused, results-driven, flawlessly-executed Finished Goods Fulfilment solutions for over a century. With expertise in contract logistics from dedicated operations, multi-client distribution centres, bonded and secured warehousing and last-mile delivery services, we offer a complete solution for your business! Our Fulfilment Centres cater to the storage, management - and distribution of goods. This network is supported by a great range of value-added services such as kitting & configurations, merge in-transit, postponement ( Configure to Order or Build to Stock ), testing, quality assurance, re-packaging, retail readiness and much more. The expertise and experience delivered by DB Schenker in fulfilment solutions offers advantages ranging from concept to solution design and execution. We select the optimum location for your products, design a simple to fully automated customer dedicated or multi-client warehouse and decide on the best suitable staff and operational processes. In addition, we leverage our operational experiences and know-how in running supply chains across various industries. All of these efforts ensure proactive and continuous improvement to meet the ever-changing needs of your business. Our three most important services: service, service, and more service. Today, we are all dependent upon computers, mobile phones and microchips. If they break down our day comes to a standstill and our results suffer. Consequently, after-market services and reverse logistics become increasingly important. The ability to have the required spare or replacement part in stock, to deliver the right part at the right time while returning and disposing the damaged part correctly are all crucial to keeping the world of business running. With our Spares Logistics solutions we ensure successful maintenance service globally based on our proven integrated spares network of strategically located spares distribution centres, forward stock locations and transportation services. This network ensures the best mix of lowest global inventories with highest product availability, shortest customer lead times and lowest overall distribution cost. With our Reverse Logistics solutions we minimise the cost maintenance service globally based on our proven integrated combining consolidated transportation with targeted reverse centre processes and systems. Our services encompass return parts verification, inspection and disposition tracking throughout the supply chain, returns exchange and repair (through authorised partners) and asset recovery and recycling according to legislative compliance and sensitivity requirements. 6 7

How does it work? Reverse logistics Maximising customers assets while minimising environmental impact: reverse logistics one of the most complex areas within the supply chain. DB Schenke offers a proven and intelligent solution for all processes associated with the reverse stream of damaged goods and the scrapping of end-of-life products - from the consumer to technical partners up to secondary channels. Outbound Nothing remains in the warehouse for long. Customer satisfaction is a crucial element as the customer is king and wants his products returned home or to the retail store in the shortest possible time frame. DB Schenker abides by the service level agreements as negotiated with the brand owner. A IT (integrated) All processes within the warehouse are supported by a reliable and secure IT system. It controls and manages disposition decisions and tracks the turn-around time of the reverse cycle from pickup at the customer to arrival of the product in our returns centre as well as the return delivery to the customer. 1 2 3 a b DB Schenker Vertical Market Electronics Reverse Logistics 5 4 c Consumption and use of electronic goods is increasing rapidly. As a result, a vast number of electronic products are returned due to product damage, defects, 30-day return policies etc. DB Schenker is highly experienced in managing these complex return flows. Our Reverse Logistics solution has numerous options for recovering assets while taking environmental considerations into account. Furthermore, customer satisfaction is guaranteed due to short turn-around cycles. Ultimately, the brand owner, the end consumer and the environment all benefit from this solution. Many decisions When a product arrives at the warehouse, it is first inspected to determine the possible fault. Depending on the results of various tests, decisions have to be made. Is the product really damaged? Would it be economically feasible to repair it? Can we harvest parts of the functioning components as spare parts for refurbishment? Do we have to scrap or recycle it? All these decisions are made according to a predefined matrix stipulated by the brand owner. The entire process is fully supported by DB Schenker s IT system that guides DB Schenker employees towards decisions determining further procedures. A B C D E F B Recycling partner Retailer Reseller End customer Repair partner Scrap partner C D F 6 a b c Retailer Service centre End customer Inbound Customers return goods because they are dissatisfied with their purchase or because the product is damaged or non-functional. Service centres request repairs, and retailers return their non-sellers. All manner of mobile phones, digital cameras, computers and printers are returned to DB Schenker s warehouse - for a variety of reasons. E 8 9

1 2 3 Component swap After screening and testing, the replacement of faulty components will often create a new or refurbished product that can either be returned to the commodity cycle or be used as a replacement within a warranty exchange program. Resale Many returned products are technically in order apart from a few cosmetic scratches or marks and can therefore not be returned to the retail market. DB Schenker maximises customers assets either through remarketing these products through secondary channels such as the Internet or by redistributing them to outlet stores. Technical screening and testing Does the product have a return authorisation number? Is it still within warranty? These questions are clarified during the initial check before the product undergoes technical tests. More than 50% of returned products are found to be fault-free. 4 Recycling and scrapping Raw materials are precious. Recycling is part of DB Schenker s green agenda, and environmental responsibility is a key component of an effective strategy. Therefore all defective products or components that cannot be reused in any other way are recycled and returned to the manufacturing process in compliance with environmental law. 5 Repair service Depending on the product s value it will either be repaired in the warehouse by DB Schenker specialists or sent to an external repair partner. When the faulty components have been repaired or overhauled, the product is either placed into refurbished stock for future warranty exchanges or returned to the end-customer. 6 Spare part harvesting It is not always economically faesible to repair a product. However, this does not mean that the product has lost its value. Good working components will be removed and used to refurbish other products, or alternatively, they will be used for spare parts fulfilment in the aftermarket. 1 2 5 4 3 A workforce of 94,000, but you still have your own personal point of contact. 6 Even though our activities cover the world, with us you ll always have your own personal contact who speaks your language and is always available when needed. We are always pleased to answer any questions that you may have and to work out a personally tailored solution to meet your needs. Please call us at +61 2 9333 0333 or send us an e-mail to au.electronics@dbschenker.com 10 11

Publishing data Schenker Pty Ltd 72-80 Bourke Road Alexandria NSW 2015 Phone +61 2 9333 0333 Fax +61 2 9333 0496 info.au@dbschenker.com We reserve the right to make changes to this document at any time. Particulars are subject to correction. Last modified: 30.04.2014 www.dbschenker.com Sydney (Branch & Corporate) 72-80 Bourke Road, Alexandria NSW 2015 Phone +61 2 9333 0333 Fax +61 2 9333 0496 info.au@dbschenker.com Melbourne 43-57 South Centre Road, Melbourne Airport VIC 3045 Phone +61 3 9344 9500 Fax +61 3 9310 4848 info_mel.au@dbschenker.com Adelaide 5 Frederick Road Royal Park SA 5014 Phone +61 8 8347 5500 Fax +61 8 8341 2244 info_adl.au@dbschenker.com Brisbane 51-57 Qantas Drive Brisbane Airport QLD 4009 Phone +61 7 3622 7500 Fax +61 7 3860 5304 info_bne.au@dbschenker.com Perth 919 Abernethy Road High Wycombe WA 6057 Phone +61 8 6310 2800 Fax +61 8 9454 4399 info_per.au@dbschenker.com Auckland 33 Richard Pearse Drive Airport Oaks, Mangere Auckland New Zealand Phone +64 9 255 2800 Fax +64 9 255 2828 info.nz@dbschenker.com