Samsung Electronics Supply Chain Management:
Analysis of Fulfilment Order Process
1. Introduction
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).
Samsung's supply chain management has several operational core processes and each process has its own complex design. Therefore, this paper will focus on one main process, the filfullment order process. This paper describes Samsung Electronics SCM operation practices, analysis its fulfillment order process, the challenges encountered, and how they were resolved. The paper also presents the flow chart of the fulfillment process to highlight its operational activities.
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Some of Samsung's business practice approaches examined by Yang el at (2007) are: SMC, Six Sigma, DMAEV (define, measure, analyze, enable, and verify), SCOR (Supply Chain Operation Reference), Black belt, and advanced planning and scheduling (APS). The collaborative relationship concept of SCM need the integration of key business processes through which information sharing and group planning are provided within and across the supply chain network of suppliers, retailers, manufacturers, and consumers (Bowersox el al., 2010).The Global Supply Chain Forum, a supply chain management research group in USA, has identified eight key business processes of SCM (Corotox et al, 2001), Figure 1: customer relationship management, customer service management, demand management, order fulfillment, manufacturing relationship management, product development and commercialization, and returns management(SCM-Institute,
Supply Chain Management: An International Journal, Volume 7, Number 5, 2002, pp. 271 – 282;
Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.
An ideal SCM integrates all aspects of logistics in a rapid manner attempting to achieve the objectives by using who, what, when, where, and why (the 5Ws) for accuracy and success. The focus of this literature will cover the history, functions, modifications and future of SCM, while also considering the literature and preceding research that was conducted in each area. This paper will enhance the readers’ understanding of the SCM in general along with the process and concepts of the subject. It will also enable readers to apply aspects of SCM in their respective line of business. The literature for this review is relative, ranging from one to three years old. Organizations must understand that Supply Chain Management can increase the company’s EBITA (Earnings Before Interest Taxes Amortization) or decrease it if used properly. An additional benefit of an optimal SCM is optimizing time from production to customer, which can increase customer base when the industry notice speed of delivery to customers.
Some of Samsung's business practice approaches examined by Yang el at (2007) are: SMC, Six Sigma, DMAEV (define, measure, analyze, enable, and verify), SCOR (Supply Chain Operation Reference), Black belt, and advanced planning and scheduling (APS). The collaborative relationship concept of SCM need the integration of key business processes through which information sharing and group planning are provided within and across the supply chain network of suppliers, retailers, manufacturers, and consumers (Bowersox el al., 2010).The Global Supply Chain Forum, a supply chain management research group in USA, has identified eight key business processes of SCM (Corotox et al, 2001), Figure 1: returns management, product development and commercialization, manufacturing relationship management, order fulfillment, demand management, customer service management, and customer relationship management (SCM-Institute,
The aim of this case study is to analyze how ZARA has achieved its success through various business strategies. In particular, we will focus on supply chain management the relation between suppliers and retailers which helped to increase the efficiency of the company and also made customers satisfy. In particular, we will analyze various analytical tools and techniques implemented by ZARA to achieve success. And
To start, Schroeder, R., Goldstein, S., and Rungtusanatham define supply chain as “the set of entities and relationships that cumulatively define materials and information flows both downstream toward the customer and upstream toward the very first supplier.” Schroeder, R., Goldstein, S., and Rungtusanatham goes on to identify supply chain management as “the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.” Organizations have to prepare themselves to the best of their ability in order to provide or their customers. Customers expect to receive the upmost service, regardless of the type of organization they make contact with.
* A company’s competitive position and profitability can be improved through the use of Supply Chain Management System (SCMS) which if successfully implemented will lead to exemplary customer service. (Oz, 2009)
A supply chain is a series of integrated processes within and across a company that produce a product or service to meet the demands of a consumer (Krajewski, et. al., 2013). Every company has a specific supply chain design and this design is implemented to meet the company’s competitive priorities. Supply chain management refers to the coordination of the company’s processes with those of customers and suppliers to match the flow of services, materials, and information with customer demand. In today’s global market companies are choosing to outsource many of their processes in order to save time and money. While outsourcing and decentralizing many supply processes may seem to be more cost effective,
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
The average company spends nearly half of every dollar it earns on production needs—goods and services it needs from external suppliers to keep producing. A supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material. Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
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
This article tells about the evolution of SCM concept and also considers the present state of supply chain management, whether it is a process, a discipline, a philosophy, a governance structure or a functional area. Here in literature review, supply chain is defined as a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, or information from a to a customer, which was given by Mentzer et al in 2001 which is still true today. But there always remain a confusion in defining supply chain management. Many researchers and practitioners created their own definitions and names to describe supply chain management. All these concepts were published in many journals in those days like International Journal of Physical
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
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.
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