Karim Siala

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MSB/ EMBA06

• TEAM 2
• Karim Siala
• Anthony Sade
• Ramy Hadj Taïeb
• Ebtissem Chabbi
• Khaled Mehiri

Final Project
Third Part Logistics for electronic components
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Executive summary

• Introduction
• Project description
• Market Analysis
• Marketing and sales activities
• Marketing strategy
• Sales strategies
• Product and services
• Operations
• Suppliers
• Technology
• Management and ownership
• Key managers and owners
• Legal structure of the business
• Financial data
• Assumptions
• Financial statements
• Financial analysis
• Conclusion
• Appendices

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Introduction

• Our project is linked with a rising sector in the
  Tunisian economy Industrialists of electronic
  assemblies (PCB assembly, electronic devices,
  wire harnesses).

• Globalization is creating an increasing pressure
  on costs, and these industrialists have to
  improve their competitiveness.
• Is their supply chain efficient ?
• How could we provide improvement to their supply
  chain ?
• Is it time for their suppliers to bring
  inventories closer in Tunisia?
• Which choice for these suppliers create own
  warehouses or outsource in a Third Party
  Logistics for electronic components? Where? How?

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Agenda

• The project
• Market Analysis
• Marketing and sales activities
• Product and services
• Management and ownership
• Financial data
• Conclusion
• Appendices

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The project
Our Objective

• Study the opportunity of creating a dedicated
  Third party logistics (3PL) provider to manage
  consignment inventories of electronic components
  in Tunisia that provides regular services to the
  manufacturers and/or distributors of these
  commodities for optimizing their deliveries to
  the Tunisian industrialists who are looking to
  improve their supply chain.

resistors, capacitors, ICs, chips, diods, leds,
transistors, etc.
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The project
Present Supply Chain of Tunisian electronic
Industrialists
Industrialists TUNISIA
Suppliers ASIA / US / EUROPE
EUROPE
HQ1
I1
S1
HQ2
I2
S2
W1
I3
S3
HQ3
I4
W2
S4
3PL 1
3PL 2
Sm
In
PUSH system
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The project
Industrialists are to optimize their procurement !

• Some suppliers deliver with long lead-time (16
  to 24 weeks!).
• Lead-time requested from the final clients are
  decreasing, and a just in time philosophy is
  requested from the companies located in Tunisia,
  to keep a comparative advantage of proximity
  versus Asian competitors.
• The majority of the actors have set-up local
  teams for procurement in their Tunisian
  subsidiaries, while headquarters are keeping
  control over global purchasing and negotiations
  with suppliers.

Our projects purpose is to provide SERVICES of
warehousing to the SUPPLIERS letting them being
closer to their CLIENTS (the industrialists) that
will benefit for improving their Supply Chain
(S.C).
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The 3PLs value proposition Improving the SCM
of electronic industries
I1
S1
I2
3PL
S2
I3
S3
I4
S4
Sm
In
Tunisia
Europe / US / Asia
PULL system
The new 3PL to be created is to let the
industrialists benefit from the same conditions
as their competitors in other areas, by taking
advantage of suppliers warehouses closer to
their facilities.
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3PL business model Suppliers clients ?
We are adressing the market of electronic
components consumed by the INDUSTRIALISTS in
Tunisia But our CLIENTS are their SUPPLIERS!
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Agenda

• The project
• Market Analysis
• Marketing and sales activities
• Product and services
• Management and ownership
• Financial data
• Conclusion
• Appendices

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Market analysis
Industry description and outlook

• During the 15 last years, Tunisia became an
  attractive investment land for European
  industrialists in the sector of electronic
  assembly (EEEAI), as it used to be before for the
  textile sector.
• Tunisian EEEAI sector is composed of 262
  enterprises with 10 or more employees, employing
  a total of 36.500 persons.
• Some 130 units are totally exporting, dedicated
  to the E.U market, for several applications
  Automotive, Home appliances, Telecoms,
  Industries, Aeronautics, Railways

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Market analysis
Actors of the market

• Electronic assemblies manufacturing in Tunisia
  is leaded by some major international actors that
  are expected to keep growing in the next 5 years,
  due to the transfer of the productions of their
  mother companies from Europe.
• The big 3 in Tunisia SAGEM, JOHNSON CONTROL
  and VALEO.
• Followed by main European OEM LACROIX, ASTEEL,
  EPIQ, ELEMAN, COFIDUR.
• Eventually, some local emerging OEM such as FUBA,
  COFAT, BETRONIC, GLOBE, IBL, ...

OEM Oustourced Electronic Manufacturing
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Market analysis
Geographic location

• Majority of industrialists are located at an
  average distance ray of 70 kms around Tunis!

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Market analysis
Purchasing decision-makers

1. Suppliers of electronic components are either
   manufacturers (VISHAY, STMicroelectronics,) or
   distributors (EBV, TTI,) that are world-wide
   actors with offices on the 3 main continents
   USA, Europe and Asia.
2. The majority of these suppliers initiated their
   collaborations with Tunisian industrialists years
   ago through their European Sales Offices, mainly
   the French ones. They are making regular
   deliveries to logistic platforms located in
   Southern Europe (near Marseille) from their
   Central warehouse the most often located in
   Germany (Bavaria)

Decision-makers are Suppliers Area Managers in
charge of South Europe Operations, that look to
follow the growth of their clients in Tunisia.
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Market analysis
Potential customers contacted

• We identified some suppliers that are selling in
  Tunisia as potential customers, and sent to most
  of them our project brief

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Market analysis
Presentation to Potential customers

• Among the arguments that we promoted to these
  suppliers in our presentation

• A warehouse ideally situated on an logistical
  axis between the Port, Tunis airport and the main
  sites.
• A modern organization according to the technical
  requirements of storage (computerized management,
  FIFO), using the most advanced technologies
  identification in RFID and EDI interface.
• A specific service to electronic components
  taking into account the standards of protection
  anti ESD, insulation against dust or moisture,
  and the standards IPC storage and treatment of
  sensitive components.
• A competitive warehousing solution given the
  advantageous Tunisian costs of factors compared
  to Europe.
• A nearby service to different distributors
  clients which allows them to develop their
  loyalty or even increase their market shares.
• A network of strategic partners with the main
  carriers serving the Port of Tunis (Rades).
• Insurance packages tailored to different contexts
  of distributors.
• A confidentiality policy in the treatment of
  materials and information made available by
  distributors and/or industrialists.
• A scheduled possibility of storage areas
  extension and of the organization with a
  progressive ramp-up plan.

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Market analysis
Reaction of Potential customers

• We got 4 meetings with managers of EBV, TTI, HAHN
  and VISHAY in Tunis and also during a specialized
  exhibition Forum de lElectronique held in
  Paris end of September 2007.
• We felt our vis-à-vis enthusiastic to our project
  because they were presently studying alternatives
  of how to implement a warehouse in Tunis (after
  friendly pressure from Sagem Tunisie) and they
  found some legal and economic barriers customs
  regulation, economy of scale, transportation over
  cost, etc.
• During our meetings, we tried to test their
  willingness to purchase our services EBV
  provides us their pricing model based on a
  package price of 9 per reference delivered But
  generally, we concluded that we have to make a
  pricing that may compete with what they already
  got from the existing competitors.

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Market analysis
Purchasing influencers

• Although our clients are the manufacturers and
  distributors of components from Europe, USA and
  Asia, the decision-makers are also within the
  Tunisian OEM Why?

• Tunisian manufacturers are growing considerably,
  and their need of a local 3PL is new
• Hence, they are pushing their suppliers to
  implement such a solution

Actually, we knew during the last months that
SAGEM TUNISIE has officially invited its
suppliers to look for setting up warehouses in
Tunis. We got a similar confirmation from JC
during our interview!
Big 3 Tunisian industrialists are INFLUENCERS!
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Market analysis
Presentation to industrialists (influencers)
Among the arguments that we promoted to the
industrialists in our presentation

• An excellent service taking into account their
  procedures and logistical specificities.
• Reduced delivery times, with a "next day
  delivery".
• A reliable organization which allows positive
  auditing by customers.
• Stocks optimization with substantial gains in
  cash and also in storage surfaces.
• Optimization of logistics costs in grouping
  regular transportations for different needs
  between Tunis and the main sources of material.
• A specialization in electronic components to
  guarantee the standards anti-ESD, in Lead-free,
  etc.
• Regular deliveries "Door-to-Door" with
  appropriate means.
• Transparent Management and possibility of
  consultation of stocks by computer means Web
  interface, EDI

It was very important that industrialists find
interest for our project, because they may
actively support it towards their suppliers !
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Market analysis
Target Markets selection

• We made a survey with some manufacturers in order
  to
• i. Present our project and check their interest
• ii. Get some figures of their procurements
• iii. Evaluate the part of imports to be possibly
  outsourced.

The concept was positively welcomed by companies
interviewed, and we got interesting outcome for
establishing our targeted market!
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Market analysis
Target Markets figures

• Thanks to the official statistics within the
  Tunisian Customs Administration, we got the
  amounts of the addressed components imported in
  2006, according to their customs codification
  (NGP)

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Market analysisMarket Growth statistics

• According to official data (on the FIPA webpage),
  the average yearly market growth for imported
  electronic components between 2001-2006 was 15
  (and even more in 2006 30).
• Taking the average growth for the last 5 years,
  we assume that imports of electronic components
  will keep a growth rate for the next five years
  of about 15 Appendices\EEEAI growth.pdf.

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Market analysisMarket Share Growth
Warehousing to be outsourced by industrialists is
computed as follows
  2008 2009 2010 2011 2012
Imported components value (TND) 1 395 973 551 1 605 369 583 1 846 175 021 2 123 101 274 2 441 566 465
Stock to be outsourced to 3PL () 10 12 14 17 20
Stock to be outsourced to 3PL (TND) 139 597 355 192 644 350 258 464 503 360 927 217 488 313 293
3PL targeted market share () 10 15 20 25 303PL
3PL targeted Market share (TND) 13 959 736 28 896 652 51 692 901 90 231 804 146 493 988

• Assumptions (above in blue) are the followings
• Stock to be outsourced to 3PL (),
• 3PL targeted market share ().

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Market analysis
Competition

• Competition is composed of generalists that are
  originally FORWARDERS providing services to
  Tunisian firms of transportation by ships from
  several ports (mainly Marseille, Genova,
  Barcelona and Rotterdam), with foreign partners,
  and making after customs clearance deliveries by
  trucks to clients facilities.
• The majority of these competitors are located in
  Rades, in the nearby of zone portuaire, and
  provide magasin cale which are warehouses where
  goods are temporary stored in order to clear
  their status with customs administration.
• Top 5 Competitors (Turnover gt 10 MD)

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Market analysis
Pricing / gross margin targets

• For the pricing, we have got the choice between
  following EBV policy of reference delivered, or
  the currently practices of the existing
  competitors of Tons to be stored.
• For a realistic positioning, we decided to go
  with the second option, and we made a comparison
  with the main competitor that is presently
  selling its services to our targeted clients.

Appendices\OTI.Price.doc
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3PL project competitive environment (Porter)
Market analysis
Barriers to entry - Access to the industry actors
(distribution channels, manufacturers,
industries) - Disruptive technologies (IT RFID,
EDI) - Capital requirements and opening
expenses - Partners expertise and competencies
- Captive customers (TTI, EBV) - First mover
advantage - Cultural proximity advantage

• Industry Rivalry
• - Large number of potential competitors
• - Local industrialists (by integrating our
  activity)
• Forwarders (by doing the same activity)
• Components producers and distributors
• (by setting up their own warehouse in Tunisia)

• Buyer Power
• - Shunt risk
• Not paying enough for
• the suggested service

• Suppliers power
• - Weak power since producers
• are our customers
• Strong agreements with
• forwarders

Substitutes - Express delivery (ie DHL)
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Agenda

• The project
• Market Analysis
• Products and services
• Marketing and sales activities
• Management and ownership
• Financial data
• Conclusion
• Appendices

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Products and services
Suppliers Identification

• Primary Suppliers are also our clients
  distributors and manufacturers of components
  they provide their components according to
  forecasts already negotiated with their clients,
  industrialists
• Industrialists place open orders for a period of
  6 months for example.
• Distributors constitute inventories accordingly,
  including a buffer stock.
• Industrialists procurers confirm their open
  orders progressively, on regular basis (each week
  for example).
• Secondary suppliers forwarders
• Shipment by sea.
• Emergent shipment by air.
• Small pack shipment by DHL, UPS, etc.
• Truck forwarders for local deliveries to
  industrialists.

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Products and services
Detailed service description
The management of the inventories is to be upon
reservations got from industrialists procurers
and regular coordinations with the distributors/
manufacturers.
Different levels of Engagement in 3PL Supply
Chain Programs for industrialists
Standard P.O. release
Bonded Inventory
Auto-Replenishment
Demand Pull
Consignment
Static Reserve
Fully Automated Inventory Reservation
Release based on pre-determined release criteria
Release by signal based on consumption
Customers logistics personnel transact
consigned inventory
Least complex
high level of engagement
The complexity of such operations vary according
to the predictability level.
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Products and services
Production and service delivery capability

• Internal
• The warehouse is to be equipped with shelves 4 m
  height, pallet loaders, RFID readers, component
  counters, There should be at the entrance of
  the building a platform dedicated to let trucks
  load goods.
• Offices are to be equipped with computers that
  use an accurate software solution for inventories
  follow-up
• External
• Commercial car for regular small deliveries.
• Outsourced trucks Partnerships to be set up
  with a network of forwarders for big volumes
  deliveries.

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Products and services
Lead time requirements
Our main value statement to our clients is
Next Day Delivery
All issues are to handle the 4 weeks average of
lead-time with the suppliers by constituting
buffer stocks and regular confirmations of
forecasts.
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Products and services
Suppliers Management

• Constitution of security stocks for all the
  references managed within the 3PL warehouse.
• Establishment of regular flows with suppliers
  warehouses in Europe or Asia.
• Our estimations of market volumes for the first
  year (2008) importing goods that fullfill the
  equivalent of 2 containers (20 feet) per week.

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Products and services
Processes use of technologies
Customer Demand Data
EDI
Web Based
ERP
Auto Generation of PO to Manufacture
RFID tracking
3PL
Auto Reservation of Inventory
Product Release
EDI
Auto Release
IMS
PO Purchasing Orders
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Products and services
Technology RFID Appendices\RFID EDI IMS.ppt

• RFID is based on use of electronic chip which is
  connected to a miniature antenna. This chip (or
  tag) is to be labeled on pre-determined lots of
  electronic components, in order to let the RFID
  readers available in the warehouse to detect them
  and compute the operation linked with
• Incoming, out coming, storage,
• FIFO management...
• Orders Storage and preparation
• Warehouse of shipping with orders preparation,
• Identification of containers, media loads,
  pallets, or boxes,
• Order of distribution and trans shipment slip
  with electronic delivery,
• Electronic components identification and
  localization,
• Goods distribution in open channels,
• Industrialists orders routing and tracking.

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Products and services
Technology EDI Appendices\RFID EDI IMS.ppt

• We are planning to let the remote relationships,
  with the distributors and industrialists, running
  in a real time through secured connections. EDI
  is a strong standard technology for this.
• The speed of electronic exchange allows
  productivity gains by participating in the
  establishment of the concept of  just in time 
  and economic gains through the reduction of
  delivery times and the stock.
• The quality of treatment is increased by almost
  eliminating the risk of typing mistakes.
• Relationship customer/supplier is enriched by the
  frequency and the shortening of response delays.
• Payments are facilitated and accelerated.
• The messages reliability is increased by various
  checks integrity, traceability of messages and
  authentication of partners.
• Innovation is also facilitated by the speed and
  the frequency of exchanges by creating an
  effective partnership as well with suppliers of
  components that industrialists.

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Products and services
Technology IMS Appendices\RFID EDI IMS.ppt

• Inventory Management Software (IMS) is a software
  solution that allows the follow-up of inventories
  and managing all the flows of goods.
• IMS takes into account all the elements coming
  from deliveries, transfers or inventories.
• Deliveries When goods arrive on store, orders
  are checked (RFID, code bar...), submitted to the
  system, and deliveries are validated.
• Orders Automatically generated taking into
  account minimum stocks, minimum quantity to
  order, and time delivery.
• Bills Upon arrival of the bill, it is submitted
  to the system and double checked with the
  delivery, and the accounting for this transaction
  will be automatically updated.
• Transfers between stores Can be automatically
  generated based on minimum quantities prerecorded
  in the system. Goods transfer will be reviewed
  and validated by the transmitters and receivers
  stores managers.

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Products and services
Anticipated increase in capacity

• Investment milestones
• 3PL project is to start operations in a rental
  facility of 1,000 sqm (we consider that only 50
  are usable for storage).
• We plan to double the area of the building at the
  3rd year of activity, provided the expected
  growth.
• Other investments in storage means (shelves, RFID
  readers, handling) are also to follow the ramp-up
  of the business.

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Products and services
Competitive advantages

• Experience of founders and variety of their
  skills and backgrounds.
• Proximity to Rades Port for lowering
  transportation costs and lead-time of reception
  of goods from distributors.
• Economies of scale for distributors/manufacturers
  by using a common warehouse for whole their
  respective clients.
• One-stop-procurement-shop for the industrialists
• Use of IT and technologies for managing
  inventories.

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Agenda

• The project
• Market Analysis
• Products and services
• Marketing and sales activities
• Management and ownership
• Financial data
• Conclusion
• Appendices

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Marketing and sales activities
Marketing penetration strategy

• As using the first mover advantage, there is no
  existing market for our services it is
  challenging to set up a marketing penetration
  strategy.
• On one hand, we believe to start the project with
  2 captive clients (TTI and EBV) with whom we
  were previously in contact and they are seriously
  considering the opportunity of setting-up a
  warehouse in Tunisia.
• On the other hand, we concluded that the first
  market approach should be made through the
  industrialists themselves, because they will
  benefit from this. So there will be an indirect
  (and viral) marketing by mouth-to-ear.
• The next step should be, after the first year of
  rump-up and achieving high standards of
  organization, to make a global prospecting in
  Asia in order to attract manufacturers for using
  our services not only for the (small) Tunisian
  market, but also towards the (big) south European
  market!

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Marketing and sales activities
Progressive Implementation
A new 3PL implementation in Tunisia should be
implemented on a progressive path, to let the
clients be secured
Degree of integration
Single transaction
Degree of commitment
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Marketing and sales activities
Growth strategy

• Internal clients portfolio development. We will
  launch the project with 3 main potential
  customers EBV, TTI and HANN which are already
  supplying the big three industrialists.
• Horizontal Become a Professional in logistics in
  complementary fields, in addition to electronic
  components, such as electro-mechanical
  components, spare parts for machinery, packaging,
  etc.
• Geographic expansion
• Serving south European customers for Asian
  producers (our partners).
• Serving potential markets outside Tunisia
  (Algeria, Morocco).
• Diversification
• Electronic components trader (for asian
  producers).
• Electronic components testing (hard and soft)
  Temperature humidity tests, Electrical
  characteristics measurement
• refurbishing of electronic components waste
  management according to the European Directive on
  electronic waste (i.e cell phone batteries).
• Recycling at the end of their life cycle,
  electronic components are disassembled and
  transferred to the appropriate recycling channel.

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Marketing and sales activities
Promotion

• Advertising printed materials, web site,
  mailing
• Public relation professional events/ fairs

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Marketing and sales activities
Sales strategies

• Sales force
• Internal recruitment of a sales engineer.
• Size one person partners.
• Recruitment and training by own means.
• Compensation fixed part variable one related
  to the objectives (Average value per rented cubic
  meter on the collected turnover).

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SWOT analysis
Marketing and sales activities

• STRENGTHS
• First mover advantage.
• Knowledge of the field of activity.
• Several competencies gathered Finance,
  purchasing, engineering, marketing, audit.
• MSB Project/MSB support.

• WEAKNESSES
• New project acquirement of trust for electronic
  companies ( electronic component are critical in
  their process).
• Key managers not 100 implicated in the project.

• OPPORTUNITIES
• Positive benchmarking for Tunisia in electronic
  activities.
• Growing underlying market (average yearly growth
  of 17).
• Possibilities of activity extension in
  recycling and repairing, and testing for PCB
  boards.
• Support of potential customers.

• THREATS
• Possibility for carrying industrialists to turn
  into logistic platforms with economies of scale.
• Promises that cannot be fulfilled.
• Cultural resistance from some HQ purchasing
  units.
• Uncertainty linked with geopolitics.

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Agenda

• The project
• Market Analysis
• Products and services
• Marketing and sales activities
• Management and ownership
• Financial data
• Conclusion
• Appendices

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Management and ownership
Company structure

• Form of ownership limited partnership.
• Founders Karim, Anthony, Ramy, Ebtissem and
  Khaled.
• Percentage ownership 20 each.
• Extent of involvement with the company twice a
  month meetings and daily conference calls.

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Management and ownership
Company funding

• Funds required and their uses
• 150,000 TND used for investments and working
  capital needs.
• Current funding requirements
• Amount 150,000 TND
• Timing first year
• Type
• Equity 50,000 TND
• Debt 100,000 TND
• Terms 7 years with 2 franchise years.

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Management and ownership Legal structure of the
business

• According to the Fiscal Governments policies for
  trading companies, our project is to be in the
  Wholly Exporting Regime
• Exporting minimum 80 of their turnover,
• Free customs duties taxes on importing
  materials equipment (6.3.41Sinda Model code),
• Fiscal advantage 0 tax on profits if company
  is created before December 31, 2007 during next
  10 years.
• No Added Value tax on buying local products
  services.
• Our project is to benefit of the new Customs
  Code Appendices\nouveau code douane.doc that is
  allowing the outsourcing of storage of goods
  under off-shore regime.

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Management and ownership Legal structure of the
business

• Special targets and news
• Reducing cost to importer exporter company.
• Logistic warehouse legislation specially for
  trading transforming business.
• Distinction between warehousing import materials
  to sell and export, or to transform by private
  investor with customs control.
• Advantage of setting up a fictif warehouse
  (logistic company)
• free custom duties taxes,
• Importing goods to re-export or selling them to
  off shore business.
• Conditions several acceptance criteria should be
  respected Appendices\Accep. criteria.doc.

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Management and ownership
Management staff structure

• Organization chart

Job descriptions will provide further details on
tasks.
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Management and ownership

• Geographic location

South Tunis, near Rades Port, is the place to be !
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Agenda

• The project
• Market Analysis
• Products and services
• Marketing and sales activities
• Management and ownership
• Financial data
• Conclusion
• Appendices

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Financial dataAssumptions
Value Unit
Equity 50 000 TND (500 shares of 100 TDN value)
Debt used for required funding 100 000 TND
Interest expenses (Medium term 5 years, 2 years franchise) 9  
Taxes 10  
wharehouse area 1000 sqm (increasing to 2000 sqm in 2010)
wharehouse height 4 meters
Stock fees 1 TND / Day / Ton
stuffing / stripping fees 30 TND / Ton
Value of stock per cubic meter 50 000 TND
1 cubic meter 4 Ton
Insurance price 0,08 of stock value in warehouse
Average Nbre of cubic meters / container 20
Milage cost / Km 0,26 TND
Number of days per year 365 days
Goods insurance 90 Revenues
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Financial dataAssumptions (transportation)
Major industrialists to be delivered Delivery Distance from 3PL's site (Kms)
SAGEM BORJ GHORBEL 30 12
JOHNSON BORJ CEDRIA 15 40
VALEO BEN AROUS 10 10
BETRONIC / FUBA MENZEL JEMIL 10 120
COFAT SIJOUMI 5 50
ASTEEL MEGRINE 5 10
VALEO EZZAHRA  5 15
LEONI MESSEDINE SOUSSE 10 300
CIPI CHARGUIA 2 5 30
ELEMAN KSAR SAID 5 60
  Weighted average (Kms)   61
  Weighted annual distance (Kms)   18,985
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Financial dataCost of capital
Appendices\Tunindex.26.10.2007.xls
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Financial dataInvestments
We imagined a basic investment the first year,
and a progressive increase the following years
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Financial dataYearly Expenses
For 2008, the expenses are the following
We assume an average increase of 5 for the
following years.
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Financial dataExpenses
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Financial dataRevenues
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Financial dataRevenues
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Financial dataIncome Statement
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Financial dataBalance Sheet
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Financial dataCash Flow
The cash flow will hopefully be positive starting
from the first year.
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Financial dataNPV and Payback
Net Present Value
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Financial dataKey ratios
Liquidity ratio is over 2 ! The project looks
very attractive.
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Agenda

• The project
• Market Analysis
• Products and services
• Marketing and sales activities
• Management and ownership
• Financial data
• Conclusion
• Appendices

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Conclusion

• After 6 months of joined efforts, with ups
  downs, we actually have made our first
  achievement stating in theory a profitable
  project for implementing a 3PL dedicated to the
  electronic assembly industry in Tunisia
• Regarding our concerns described in the
  introduction, our studies are showing that the
  domestic industrialists are presently requesting
  better service from their suppliers, that our 3PL
  project is providing a significant improvement in
  their supply chain issue and a unique opportunity
  to their suppliers for strengthening their
  position towards Tunisian growing market.
• We have of course to be careful in the
  assumptions undertaken and mainly some
  uncertainties about market evolution
• Nevertheless, our idea of establishing such Third
  Party Logistics for electronic components is
  definitely to be followed!

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This is not the beginning of the end,
What is next?
BUT the end of the beginning

• of a real project named
• KAREK

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What does KAREK mean?

• K like KARIM
• A like ANTHONY
• R like RAMY
• E like EBTISSEM
• K like KHALED
• Founders of
• KAREK Logistics Distribution

Click here to know more about KAREK
Appendices\Présentation KAREK 14092007.pdf
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KAREKS Schedule

• KAREKS activity is to be launched by early 2008,
  according to this schedule
• June-November 2007 market financial studies.
• December 2007 administrative procedures (company
  creation Appendices\Sce project declaration.pdf,
  building rental).
• 1st quarter 2008 recruitment and training of the
  staff, procedures...
• 2nd quarter 2008 partnerships patents.

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Agenda

• The project
• Market Analysis
• Products and services
• Marketing and sales activities
• Management and ownership
• Financial data
• Conclusion
• Appendices

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Appendices

• Professional references Appendices\salon
  Lumiville EBV.pdf
• Market studies Appendices\Réponse Johnson.doc,
  Appendices\Réponse Fuba.pdf, Appendices\Réponse
  SAGEM.doc, Appendices\REGIME GPE SECTORIEL
  D'ACTIVITE 01.tif, Appendices\REGIME GPE
  SECTORIEL ACTIVITE 02.tif
• Legal structure Appendices\entrepôt fictif 1.doc,
  Appendices\entrepôt fictif 2.doc,
  Appendices\entrepôt fictif 3.doc,
  Appendices\entrepôt fictif 4.doc,
  Appendices\entrepôt fictif (privé) P71.doc,
  Appendices\entrepôt fictif (privé) P 72 73.doc,
  Appendices\BOD 415.doc, Appendices\BOD 416.doc,
  Appendices\BOD 417.doc, Appendices\BOD 418.doc,
  Appendices\BOD 419.doc, Appendices\BOD 420.doc
• Pertinent published information Appendices\Etude
  stratég IEE02.pdf, Appendices\Electronique cap
  vers ss traitance.pdf, Appendices\Etude stratég
  IEE02.pdf, Appendices\nouveau code douane.doc

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THANK YOU FOR YOUR KIND ATTENTION!
TEAM 2 BP Final project