Best Regards, Bill Stankiewicz Vice President and General Manager Shippers Warehouse of Georgia Office: 678-364-3475 Williams@shipperswarehouse.com http://www.linkedin.com/in/billstankiewicz2006 http://www.slideshare.net/BillStankiewicz. http://www.twitter.com/BillStankiewicz Sustainable Consumer Packaged Goods member CPG Branding and Forum Member Please consider the environment before printing this e-mail “Change doesn\'t start on the surface. It\'s generated from consciousness.” Deepak Chopra http://bill-stankiewicz.blogspot.com/2009/07/shippers-warehouse-in-top-70-food.html http://ask.depaul.edu/Students/MentoringandAdvice/ASK_Away_Archive.asp

1. Seiko Epson Corporation
Denis Doyle – Operations Director
26th September 2007

2. Strategy to date / Summary
• (Seiko) Epson Overview
• Logistics Infrastructure Evolution
• Direct Ship Evolution
• One aspect of flexibility in the supply chain
• Summary

3. Consolidated Total Sales (YE Mar 2007) ¥1,416.0Bn /€ 9.0Bn
Color Imaging Energy Saving Micro-
Mechatronics
Information-Related Equipment Electronic Devices Precision Products
¥86.9Bn [€0.55
[€
¥913.4Bn [€5.8 billion] (64.5%) ¥411.2Bn [€2.6 billion](29.0%) billion] (6.1%)
Imaging and Visual PCs Displays Semi- Quartz Watch,
Information Instruments conductors Devices Optical,
Products FA Products
85.2% 11.6% 3.2% 58.9% 19.8% 21.3%
Other ¥4.3Bn
Notes 1. Segment sales exclude intersegment sales
2. % of sales for each product categories in each business segment include sales that occurred between ）
(0.3%）
the product categories, within the business segments
3. Euro amounts are included solely for the convenience of readers.
The rate of ¥157.25 = €1 at March 31, 2007, has been used for the purpose of this presentation

4. Finished product range overview
Projectors
Pro-graphics
Home photo Displays
& printing
Scanners &
cameras
Business & Point of sale
networking

5. EMEA logistics infrastructure FY02 to FY08
ESC Warehouse
Central Warehouse
Dubai

6. EMEA logistics infrastructure FY02 to FY08
Central Warehouse Insourced Outsourced
12,500m2 7,500m2
Telford - UK Hamina – Fi
Supplies & All products for
Media Russia
Outsourced
47,000m2
Tilburg - NL
All main units +
toner
Insourced
7500m2
Barcalona - Sp
All Spare Parts
Outsourced
2,500m2
All products for
ME/Af/CIS
Dubai

7. CDC construction status July 2007
Recently voted “Best Looking” warehouse in Holland!

8. Impacts of these changes
Historic Epson EMEA Physical Structure Future Epson EMEA Physical Structure
ESC Warehouse ESC Warehouse
Central Warehouse Central Warehouse
EMO EMO
SWE
EDC3 EDC3
EUL
EDC5
EDC2 CDC
EDG
EFS
EMS
EIS
EPO
EIB ESPC ESPC
DUB DUB
5 7
• 15 sites – approx 140,000m2 at height • 5 sites – approx 85,000m2 expected
• Inventory “trapped” in many locations • Inventory more flexible
• Many steps in the supply chain • In times of shortage customers gets
goods quicker
• Customers receiving more
• Customers receiving goods from many sites
consolidated shipments
• Many “owners” of the supply chain
• One single “owner” of the supply chain
• Obviously an expensive solution
• A more economic solution

9. Direct shipment Evolution
Historic Supply Chain
EDC ESC WH Cross dock Customers
Step 1 Step 2 Step 3 Step 4
Asia Direct Direct Ship
Asia Direct
EDC Cross dock Customers
Factory Commit a certain % (eg 70%) of expected volume over a period
a minimum of 10 weeks before delivery date to customer site to
allow factory build and ship direct from factory.
Savings for both customer and Epson.
Step 0 Step 1 Step 2 Step 3 Remaining demand can be fulfilled from Euro sites.
Future Supply Chain
CDC
EDC Cross dock
Cross dock Customers
Customers Future Supply Chain
Factory
Factory
Will also allow for container storage of fully configured product
and shipment from container storage direct to customer without
any warehouse handling (pallet depending).
Will also allow for cross docking (receipt and consolidation) in
Step 0 Step 1 Step 2 Step 3
warehouse without storage and then direct to customer.
Step 0 Step 1 Step 2 Step 3

10. EMEA Supply Chain to CDC
STANDARD
FLOW
Asian factory Inbound Rotterdam CY Per barge or rail transport Storage in Picking from Delivery by CDC WH into
to Rotterdam custom max 3 days from RTM CY to BTT CY BTT max 14 BTT response truck to CDC racking or via
seaport clearance free storage lead-time 1 day days free time: < 10hr. 15 minutes fast track
Ocean Carriers Transporter Warehouse Op
Ocean Freight Inland Freight
EXCEPTIONAL
FLOW
Delivery to CDC 2
hours

11. Inland transport
EPSON CDC
BTT CY RTT

12. Flexibility on Space/Storage
Traditional Warehouse Size
Unused Space = Wasted Cost
Growth Opportunity
Stock
Level
e
si z
se
ou
eh
ar
lw
ea
Id
A M J J A S O N D J F M

13. Flexibility on Space/Storage
Flexible Storage
Stock
Container Yard Storage
Level Minimum Committed Space
A M J J A S O N D J F M

14. Flexibility on Space/Storage
Flexible Storage
Stock
Container Yard Storage
Level Minimum Committed Space
A M J J A S O N D J F M

15. Flexibility on Space/Storage
Flexible Storage
Container Yard Storage
Stock
Level Minimum Committed Space
A M J J A S O N D J F M

16. Strategy to date / Summary
• Implement direct shipment
• Eliminate warehouses at local ESC (Epson Sales Company)
• Decrease space & handling activity in total
• Increase configuration at factory enabling Direct Ship from Asia to
Customer
• Fully utilize resources
• Make what we have more flexible
• Design for Supply Chain

17. EXCEED YOUR VISION
Thank You