Samsung Electronics announced that it has signed and MoU with Russian Railways to transport its products on the Trans-Siberian Railway, from Korea or China to Eastern Europe.
Using Trans-Siberian will allow Samsung to utilize the routes to production and sales sites in Russia and Europe, enabling a reduction in lead time and logistical costs.
Since January 2016, Samsung has been delivering the components and materials from China to the Kaluga factory in Russia, where TVs and washing machines are manufactured, through TSR and Trans-Manchuria Railway (TMR). This route shortened the lead time from 50 days to 18 days and saved logistical costs.
Additional routes included in the MoU are routes to European countries and Russia. Once the container ships arrive in Vladivostok from Korea and China, the containers will be transferred via TSR to Slovakia, Hungary, and Poland. This will drastically reduce the lead time from 35 days to 18 days.
Shortened lead times will bring Samsung more benefits, including stable inventory control and immediate and efficient adjustment when product models change.
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