AP Shared Services Newsletter Q1 2012

INTRODUCTION

Dear Colleagues,

Welcome to our first newsletter for the year. 2011 has been a fruitful year,

you will find updates on our teams, accounts and achievements for Q4.

In 2012, we have re-organized our Key Account Support team as Century

Customer Management to drive more focus on our century accounts, I

am confident the team will deliver better performance under Siva’s

leadership.

Our focus for first half of 2012 is to support retention and grow our 7

critical accounts in AP: GM, WD, Apple, Nokia, HP, TE and Nike. We look

forward to helping AP achieve success despite the challenging market

outlook – together we can make a difference!

Issue 4, Quarter 1 2012

Inside this issue

Introduction

Global Support Center Page 1

Updates

Global Tender Page 2

Management Updates

Century Customer Page 3

Management Updates

Technology Accounts Page 4 - 7

Updates

Automotive Accounts Page 8

Updates

Industrial Accounts Page 9 - 10

Updates

Consumer and Retails Page 11

Accounts Updates

AP Shared Services AP Shared Services Quarterly Quarterly NewsletterNewsletter

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FOR INTERNAL USE ONLY

Regards,

Andrew Hong

Director, Shared Services AP

GLOBAL SUPPORT CENTER UPDATES

New Staff Onboard

Akhilesh Airen and Jacob K Reju have joined as Business Support

Analysts as part of Business Support Team.

Achievements

In Q4, the team took on additional responsibilities, following are the key

ones:

•Global Service Offerings (GSO) Compliance Project

•GPS support for Matrix implementation in Asia Pacific

•C-View Opportunity Report

•Additional reports (e.g. 3M US to Germany daily report)

COMPLIMENTS:

J. Guilherme Rodrigues Silva,

Senior Global Service

Offerings & Pricing Analyst:

“I would like to thank you for

the vital support to re-launch

this auditing initiative. It is a

learning process that takes

more than a couple of weeks,

but you certainly did a great

job! I am confident that we

will help the organization

reach the desired level of

standardization for our service

offerings with these reports.”

Alex Ho, Senior Key Account

Manager: “Vatsala, great job

with the report! Good to see

all information fully completed

and the reporting fully covered

with response from all. Quality

of information is there. Please

keep up the excellent piece of

work.”

AP Shared Services Quarterly Newsletter

Teambuilding

GSC team had an outing on Christmas Eve, it was a time of fun and

teambuilding for the team after a year of hard work!

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GLOBAL TENDER MANAGEMENT UPDATES

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GLOBAL TENDER MANAGEMENT UPDATES

Achievements

In Q4, the team achieved the following major wins:

•Continental Air

•Henkel Thailand DC & Freight

•GM Prototype Air

•Celestica Air

•Eaton Ocean

•LSA AP Air & Ocean

•Molex Air & Ocean

There is increasing number of bids as we go into our usual peak season for

bids in Q4 and this will continue in Q1. The team aims to achieve more

and significant wins to boost our freight volumes in 2012.

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CENTURY CUSTOMER MANAGEMENT UPDATES

New Staff and Team Structure

On 1 Nov 2011, we have a new team member, Vivian Qiu onboard the

team as Key Account Executive in Singapore. She is tasked to support

Nokia and HP, 2 major technology accounts.

With effect from Jan 2012, the team has been re-organized under one

leader and renamed as Century Customer Management to drive better

customer support management and focus on our Century customers. Siva

Indran leads this team as the General Manager.

Following is the new organization chart.

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TECHNOLOGY ACCOUNTS UPDATES

Western Digital

Account Management Changes

Janet Ang joined CEVA as of 24 Oct 2011 as the Global KAM for Western

Digital. She is replacing John McDonald on his Western Digital role. She

will be based in Los Angeles. A Singaporean native, she brings along with

her 17 years of logistics to CEVA and is looking forward to the challenges

of handling one of CEVA’s largest account.

Customer News

Flood inflicted by heavy monsoon rains and back to back tropical storms

since July had caused 70% of Bangkok district to be submerged with rains

waters in the last 2 months. The flooding affected many computer and

electronics components makers that depend on supply chains that come

out of Bangkok. Western Digital and other HDD suppliers factories were

also affected with flood water that caused temporarily factories shut

down. This had caused the supply of HDD in the global market to fall short

whilst the price of computer to skyrocket by 10-20% of the normal price.

Western Digital - 40% of global HDD supplier had committed on getting

both factories to run in full capacity in this coming March.

Achievements

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Achievements

During Thailand flood, CEVA staff globally had been putting in extra time

to assist Western Digital and last minutes change of directions.

Western Digital had instructed CEVA to hold all the WD shipments from

uplift or delivery. All the shipments that were not uplifted were returned

back to the factory while shipments that were uplifted were put on hold

at destination station or gateway until further notice. Furthermore, Ceva

also provided supply chain options and solutions to Western Digital in

order to support on the current shipments hold issues.

Continuous Improvement

During the last few months of 2011, WD increased their Ocean shipments

in order to offset price increases from higher fuel costs.

To support WD Ocean business in future months, we have enhanced the

Ocean screen function in RRAW Portal which enables the user to submit

rate request, trace the status of rate request, give visibility of rates

approval and a function button for WD to approve new rate submission.

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Nokia

Customer News

Nokia has launched the Lumia 800 and 710, powered by the latest version

of Windows OS. The phone covers can be replaced by different colors

everyday and Nokia included some exclusive Apps in them.


In Beijing, Joanna Zhou has taken on the role of Key Account Manager for

North China. Xu Jing has joined CEVA on 28 Nov as Nokia Performance

Manager for overall China.

RFQ Awards

CEVA has been awarded new lanes from Kun Ming, West China to the US

and Brazil, this will support Nokia in delivering raw material from Kun Ming

suppliers to Nokia factories in Mexico and Brazil.

Implementation

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Implementation

Nokia continues to develop new lanes for their B&S program, which are ICN-

CAN, PEN-NKG, HKG-BJS and HKG-NKG. Implementation is going on as

scheduled. Kun Ming is a new origin for Nokia; we are currently preparing

for the implementation of the new business by providing intensive training

to respective stations.

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Lenovo


Jocelyn Ng has taken on AP Performance Management role for Lenovo

account since Oct 2011.


With combined effort from BKK/SIN/KUL operations team and IS&S, we

have gathered information on overall operation process versus the EDI

process. This has helped us to identify some issues & we are in the midst

of improving it.

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Seagate

Customer Update

On 19 Dec 2011, Seagate corporate office in Cupertino, California, USA,

announced the closing of the transaction to acquire the hard disk drive

(HDD) business of Samsung Electronics Co., Ltd., a world leader in digital

consumer electronics and information technology.

Under the terms of the transaction, Seagate has gained selected

elements of Samsung's HDD business, including assets, infrastructure

and employees that enable Seagate to drive scale and innovation. These

assets include Samsung's leading M8 product line of high-capacity, 2.5-

inch HDDs.

Seagate is supplying disk drives to Samsung for PCs, notebooks and

consumer electronics devices. Samsung is supplying its market-leading

semiconductor products for use in Seagate's enterprise solid state drives

(SSDs), solid-state hybrid drives and other products. The companies have

also extended and enhanced their existing patent cross-license

agreement and have expanded cooperation to co-develop enterprise

storage solutions.

Supplier Scorecard

CEVA beat 2 other top competitors to emerged as Seagate’s top global

logistics partner in the Q3’11 Global Supplier Scorecard. This is a very

significant milestone for us considering that CEVA had only began

operating SEAGATE’s business mid July 2011.

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CEVA has embarked on a KAIZEN project to achieve better POD

Timeliness performance. This project is driven globally by our Global

Account Lead, Joaquin Pineda, and will bring close to 100% POD

provision to Seagate through EDI in less than 2 days from delivery date.

Currently on trial, truckers are to send a text message back to CEVA

operations personnel once the delivery milestone has been fulfilled and

even before POD is returned to the office. CEVA ops personnel will

update the reports in real-time instead of waiting for all the PODs to be

back in CEVA office.

Rates Revision Exercise

We are undergoing a bench-marking exercise which Seagate conducts

on a 6-month basis. This exercise commenced in December 2011 and

will end in January 2012. The 3 main service providers of Seagate are

DHL, UPS and CEVA.

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FCI

Customer Update

On 20 Oct 2011, Astorg, a French private equity firm, completed the

acquisition of FCI Microconnections (FCI MIC) division. With that a new

name, LINXENS, was born from this newly formed and stand-alone

organization.

LINXENS is the largest manufacturer of flexible etched circuits (FEC) for

smart cards in the world. In 2010, the company generated sales of 200

million Euros. LINXENS has a total of 3 manufacturing sites, 2 R&D centers

and 770 employees.

Today, a large proportion of the world’s smart cards include a FEC

manufactured by LINXENS.


FCI 2012 RFQ is in progress and we have been shortlisted for Round 2.


Number of damages reached all -time low towards the closing of 2011.

In the last quarter of the year, CEVA attended a training conducted by FCI

for their new EAGLE system. The EAGLE system is FCI’s in-house tool to

monitor the 8D process for any mishandling that may occur during transit.

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monitor the 8D process for any mishandling that may occur during transit.

We have provided the appropriate feedback and made some adjustments

accordingly in order to go live with the global system in the following

quarter.

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AUTOMOTIVE ACCOUNTS UPDATES

Delphi


A global FSC/SSC matrix have been implemented for Delphi. Benefits

include:

•Simplified FSC & SSC process for Delphi EU and AP

•Centralized the control power on Delphi FSC & SSC approval to Delphi AP

•Reduced workload for both CEVA origins and GSC team

Customer QBR and SOP training

On 20 Oct 2011, CEVA held the Q2 QBR for Delphi in Delphi Packard

Shanghai plant. From 28 Nov to 1 Dec 2011, CEVA held the Q3 QBR for

Delphi at the Delphi Guangzhou plant and provided SOP training session for

Delphi plants in Wuhan and Guangzhou. The meetings achieved the

following:

•Reviewed and confirmed CEVA performance during Q2 and Q3

•Shared latest marketing trends and analysis with Delphi

•Provided Delphi local plants with better understanding of SOP

•Strengthened relationship among CEVA, Delphi AP and Delphi local plants


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Customer Project

CEVA intends to start the project of part number level shipment visibility

solution for Delphi . We will initiate follow-up meetings with Delphi to

obtain agreement on following at the beginning of 2012:

•System solution and proposal for Delphi materials moved by CEVA

•Support & resources needed from CEVA & Delphi

•Target timeline for implementation

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INDUSTRIAL ACCOUNTS UPDATES

3M


The bi-annual rates review exercise for 2012 was launched in November.

The current lanes have been our main focus. We have aligned our freight

rates with the transit time in order to stay competitive in the market.

Besides that, we are also tapping into new opportunities and re-visiting

the 3M-US inbound lanes where CEVA might be able to regain some air

freight business from the incumbent.


We have further improved the 3M Air Dashboard. The Dashboard will

include Year-on-year data (e.g. tonnage/ freight spend), and OTP %, and

this will also serve as a useful tool for data analysis and presentations.

We will be able to focus on the delay contributors from the dashboard,

and to proactively improve the overall service delivery performance for

3M. We will be setting the OTP % at 95%, as a target for 3M AP.

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Cummins

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Cummins

Commercial Opportunity

2 Opportunities upcoming for CEVA:

•Xiangyang entity FM project to Russia and Brazil on Air and Ocean service.

Annual GR of this project is around EUR600K and they will begin the RFQ

in mid-2012

•Second potential project is FCL imports from the UK. Annual GR of this

project is estimated to be EUR300K. Cummins has already completed their

internal evaluation and preparation; they may start in beginning of 2012


With joint efforts of all the stations, we have improved the KPI on

milestones entry in Navigator (ETD/ETA/ATD/ATA and SDN process).

Proactive monitoring will be done every Monday to keep track of our

Cummins AP teams’ performance.

Achievements

We have continued the monthly meetings with Country Key Account

Managers. The main agenda is to review Cummins’ KPI performance, to

provide updates on the key Cummins projects, initiate new business

opportunities and to discuss the challenges and feedback from each

station. This will act as a very good platform for our KAM team to

communicate and cooperate with one another, whilst continuously

providing excellent service to the customer.

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Tyco Connectivity

SNMS Application Program

TE Connectivity has developed a Supplier Network Management System

( SNMS) Application Program. This program has been designed to help us

( as TE supplier) to work more easily and effectively with TE. With the

help of SNMS, we can now submit 8D- Corrective Action Plan

electronically to the respective TE entities.

Supply Chain Solutions (SCS ) Project Status

The SCS project is to bring a SMART End-to-End Solution for TE

Connectivity. The Project Manager for AP is Ms Wendy Deng from the SCS

Project implementation team.

The project is divided into 4 phases ; classified by the different trade-lanes.

Currently, TE connectivity is at phase 2 where they are implementing all

shipments from AP/ EU/ SA to EMEA Destinations.

Following is project status update of SMART End-to-End implementation

for TE Connectivity.

Phase 1 Pilot-Air From US to EMEA Nov 2011

Phase 2 All Origins to EMEA Dec 2011

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Phase 3 All Origins to AP Plan to Kick off during

Jan 2012

Phase 4 All Origins to NA and SA Plan for Feb 2012


CONSUMER & RETAIL ACCOUNTS UPDATES

Nike

Customer News

(20 Dec 2011) NIKE, Inc. reported financial results for its fiscal 2011

second quarter ended November 30, 2011. Earnings per share for the

quarter rose 6 percent as a result of continued strong demand for NIKE,

Inc. brands, SG&A expense leverage and a lower average share count,

which more than offset the impact of a lower gross margin.

“Our strong second quarter results demonstrate that the NIKE, Inc.

portfolio is a powerful engine for growth,” said Mark Parker, President

and CEO, NIKE, Inc. “We’re able to accomplish this by staying focused on

what we do best – deliver innovative products and experiences that serve

athletes, inspire consumers and reward our shareholders. Going forward

we’ll continue to use the unique power of our portfolio to drive growth,

manage risk and connect with consumers.”

Results highlights :

•Revenues up 18 percent to USD5.7 billion

•Diluted earnings per share up 6 percent to USD1.00

•Worldwide futures orders up 13 percent

•Inventories up 35 percent

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•Inventories up 35 percent

Upcoming Annual RFP/RFQ

NIKE’s annual Air freight RFP has been pushed forward to January 2012 vs.

Feb/March 2012 which was the usual timing in the past. We aim to retain

existing business, and also gain back previously lost lanes.

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CONTACT

Your feedback and suggestions are valuable, please share by sending

them to [email protected],

[email protected] and [email protected].

Next newsletter will be published in Quarter 2, 2012.

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AP Shared Services Newsletter Q1 2012

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