Samsung Electronics is deservedly ranked as one of the leaders in the global electronics market, not only because of the scale of its production but also because Today, Samsung is not just a manufacturer of devices that make everyday life easier for millions of people in different countries; it is an innovative company that has significantly contributed to the development of the global technology industry. Under Samsung, the brand appeared with the first product of its kind and unprecedented technology; the company set new trends anticipating consumer expectations. Samsung’s activities unmistakably reflect the company’s founding credo of never-ending progress (Jeon et al., 2020). Furthermore, this movement never stops, thanks to the company’s research and development centers worldwide. The company’s internal supply chain and logistics processes have a very strong foundation, which is why it functions well.
The supply chain is a system of processes determining the formation of information, material and financial flows from suppliers to end users. It consists of many links and chain objects. A flexible and effective supply chain today is one of a company’s most important competitive advantages in any industry and market. To efficiently ensure the coordination of the movement of materials and other resources, logistics is a collection of organizational, administrative, industrial, and technical procedures.
To provide logistics partners with demand forecasts and optimize deliveries, Samsung Electronics uses the global logistics system (G-LS). It allows logistics companies to collect the data they need about a product at all stages of the production and sales process, from its departure from the factory to delivery to the customer. Global logistics involves forming and organizing sustainable logistics systems that link business structures worldwide based on the division of labor, cooperation, and partnership in the form of agreements supported at the interstate level. With up-to-the-minute information, partners optimize their plans to get parts to factories on time and newly manufactured goods to the customer. Thanks to Samsung’s global logistics system, there is no need to stock many products, and the company can send them to the market quickly. Mark Zetter illustrates a map of Samsung’s product shipments (Zetter). Below is an example of this map:
A customer relationship management (CRM) system operates in marketing, sales, and service. It connects Samsung’s sales offices with major customers (telecommunications operators). Thus, B2B customers receive accurate information about the company’s products and can place orders following forecasted demand. In turn, Samsung Electronics receives data about each customer and can develop individual marketing strategies. Moreover, Supply Chain Management (SCM) transforms these core operations and functions into a single information system that serves all parts of the value chain (product development, manufacturing, quality assurance, logistics, marketing, sales, and after-sales service). All those involved in the process, suppliers, partners, subsidiaries, foreign subsidiaries, and dealerships, are likewise interconnected.
Using the system, they can receive information in real-time. For example, employees at the head office can easily see how much Samsung has sold to a particular retailer in the United States, what its inventory is, and when a new shipment needs to be delivered there. Since the implementation of the global SCM system in 2002, Samsung Electronics has been able to make decisions regarding production, sales, and logistics at weekly meetings in the global management center (Akbari, 2022). The ERP system ensures implementation if the SCM system supports decision-making processes. It is a unified data processing system for logistics (purchasing, production, and sales) and financial accounting (accounting, financing, administration, and investments). Overall, the ERP system helps reduce inventory and lead time on delivery orders. In January 2003, Samsung established a worldwide trade network (WTN) across all its Korean and overseas operations (Nakamura et al., 2021). This system uses the Internet to merge individual ERP systems from various Samsung organizations.
This way, universal online transaction automation and management information sharing are achieved. A unified sales network has dramatically reduced time and increased order fulfillment accuracy. The introduction of common standards across the group has reduced errors and costs, while mutual understanding between departments and transparency of operations have, on the contrary, increased. In 2008, Samsung went even further and created a global ERP system. It works with financial, logistics, and inventory information from overseas locations. As a result, the company makes weekly consolidated financial statements in two days.
As a result, the firm’s critical condition may be brought on by either a significant increase in rivals entering the market or a significant shift in customer preferences. A restrictive policy of the state authorities, such as an increase in customs charges, an increase in transport tariffs, and changes in trade laws, can bring on the demise of the corporation or its withdrawal from the sector.
Reference List
Akbari, M. (2022) ‘Outsourcing in Supply Chain Management’, The Palgrave Handbook of Supply Chain Management, pp. 1–27. Web.
Jeon, C. et al. (2020) ‘Talking over the Robot’, Interaction Studies, 21(1), pp. 85–110. Web.
Nakamura, W.T. et al. (2021) ‘Are UX evaluation methods providing the same big picture?’, Sensors, 21(10), p. 3480. Web.
Zetter, M. (no date) Economic Drivers, challenges creating regional electronics industry, VentureOutsource.com. Web.