Samsung Supply Chain Management

13474 Supply Chain Information Management 201 Singapore Campus 11 Jul 2013 School of Information Systems, Curtin Business School

Mellat-Parast and Spillan (2014) defines supply chain management as the method of handling material and information moves from the beginning, through the organization, and to the end-user. This is a very important factor of organizational strategy.

The globalization of organizations and more competitive forces have compelled more manufacturing businesses to improve an efficient supply chain planning for reducing the cost of supply chain. Planning of supply chain is being the critical component of business’ management. Supply chains have conventionally been split, being unsuccessful to assimilate the business utilities in the chain of logistics process. Such difficulties, as extended order lead times, high inventory costs, and struggle in answering proactive to real time variations, having lower profits and weak client goodwill that can be determined by putting together supply chain management schemes for transportation and warehousing. Supply chain can be explained as a combined practice where actually numerous different organizations individuals such as manufactures, retailers, distributors, and suppliers perform together in order to obtain raw materials, transform these raw materials into wanted ultimate products and supply these ultimate products to the vendors. The key methods in this combined procedure are the distribution, logistics, production planning and control. The production and planning steps are two of the most crucial parts to obtain worldwide optimization in supply chain management. And, this should be explained inside the integrated planning infrastructure. Interactive parts of supply chain included key parts such as purchase, production, logistics planning, sale, production and manufacturing

Supply Chain Management (SCM) has been defined by Supply Chain Management Institute to be “the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders”(SCM-Institute, 2016).

Supply change management (SCM) is active in many organizations today. The purpose of SCM is to maximize the company value in order maintain a competitive advantage in the market place. As an Operational Managers (OM) it is essential to oversee the supply chain within an organization. The OM responsibility is to manage the supply chain flow, and to ensure the supply chain has a quality design in order to reduce cost and drive efficiency. (Reid & Sanders, 2010) An organization supply chain includes activities such as product development, sourcing, productions, logistics, material, and other information systems needed to coordinate the movement of goods from suppliers to manufactures, and to final customers.

Supply chain management (SCM) is a core part of organizational effectiveness in order to achieve goals characterizes efficiency. Globalization and international agreement led Toyota to develop it is SCM process to increase outsourcing supply raw materials from foreign market that are low cost and high quality.

This literature review focuses on illustrating the Supply Chain Operations Model developed in 1996 by the Supply Chain Committee. Since its creation, the SCOR model has been implemented by a multitude of organizations and increases in popularity. The origin and purpose of the model is discussed and process reference modeling is explained in the review to establish the structure of the model. The structure of the model is developed in more detail with the performance and metrics illustrated. The three levels

Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between

Beginning with an understanding of supply chain management, Hill et al. (2015) defines the task as managing the components from suppliers and the flow of inputs used in production to maximize inventory turnover, while minimizing inventory holding. Competing in the smart phone market requires Samsung to use innovation, a source of competitive advantage, possibly leading to high profit gains if production costs can be reduced and quality can be improved (Hill et al., 2015). Should Samsung succeed in producing high quality at a low fabrication cost, they could compete with Apple, for example, and possibly earn higher profits to match their large market share, which currently does not match their profits.

Improvements in transportation process and technology enablement make available the most achievable way for most companies today to flush out supply chain costs and advance quality, reliability and customer satisfaction. Companies across nearly every industry sector are motivated to become supply chain management leaders. SCM leaders attain this rank in their markets by extensively dropping cycle times and operating expenses, increasing supply chain

which activities are managed is significant for a company 's success. Moreover, the supply chain management is crucial within a firm 's processes since it incorporates activities in which intermediate goods and final products are given to consumers through a distribution system. It is important to analyse it and take into consideration that this subject matter has a great impact within business procedures.

As we know, SCM represents the collaboration. No wonder companies that collaborate effectively across the supply chain have enjoyed dramatic reductions in inventories and costs, together with improvements in speed, service levels, and customer satisfaction (Luis B., Verda E. & Daniel S., 2012). Collaboration is an important characteristics for people in the supply chain industry to create more shared values than those who don’t collaborate. In the supply chain, suppliers are able to provide sufficient raw materials, manufacturers are able use the material to produce high quality of product; people in the logistic are able to manage the stock information. These series of works can only be done when people in all the parts cooperate with each other. If customers are satisfied with the services or products offered by the company, they will purchase more and then create further profit than before, thus, the company can have more capitals to cooperate with its suppliers in the long term; the suppliers are also capable to get great profits back, thus, the collaboration provide a win- win situation. A long term cooperation is the factor to tight the relationship between the company and the suppliers. Trust and consideration will be established when companies corporate with each other many times, and these will also make the work become more effective and reduce some unnecessary

The LEGO Group is recently experiencing a problematic phase, which has situated the organization with a deficit of 1.8 billion DKK. The problems experienced by The LEGO Group can be attributed to not being able to manage as well as stabilize a strategic supply chain. Successful SCM is crucial for a manufacturing firm in order to harmonize the production process and internal information with demand for the product. When considering the importance of supply chain management, organizations need to study its effect on other major business processes as well as how it will influence the organization as a whole. Supply chain management may directly or indirectly influence major process such as inventory, capital investments, distribution

According to Routroy and Shankar (2014), supply chain systems are becoming increasingly lengthy and complex. This is an indication that the modern global marketplace has become dynamic in nature. Supply chains are very complex, with a lot of parallel physical and information flows taking place so that products are delivered in the correct quantities, to the right place in a cost-effective manner. As a result of the forgoing situation, it has been suggested that supply chains may not be the most accurate term to define the interactions but supply networks may be a rather more precise term to describe the situation. However, the focus on achieving more efficient supply chains has rendered them more prone to disruptions (Jüttner, 2005).

Walmart has one of the largest supply chains in the world, it’s successfully delivering products to 200 million customers more than 11000 stores in 27 countries. The phenomenal growth of Wal-Mart is associated to its continued focus on customer needs and reducing cost through efficient supply chain management practices. In general, the step of SCM it follows are begins from suppliers who row materials, equipment’s and other ingredients to manufacturer, manufacturer use those materials to produce finished goods, from manufacturer Walmart purchase huge products then transport it to distribution centers then to retail store to customers. For online sells, it passes ordered products directly from nearby stores or