Today Samsung Electronics has proven to be one of the most successful global brands to follow.
In supply chain management context, they has demonstrated operational excellence that leads them to supply chain hall of fame. In this article, we will explain to you how they do it.
Background
“Samsung” in Korean language means “3 stars” or “tri stars”. At first, they had a strong root in trading business. Later, they took the diversification strategy and entered electronic industry by producing black-and-white TV set.
Anyway, the rise of Samsung started when Lee Kun-Hee succeeded his father as a second chairman of the company.
During 1990s, he noticed that many Japanese companies who were the leaders in analog technology hesitated to adopt digital technology. Then he gradually created transformations that later change the face of the entire industry.
How do they build superb supply chain management capabilities? We investigate further and find 3 related articles as below;
The Paradox of Samsung’s Rise on Harvard Busienss Review
by Tarun Khanna, Jaeyong Song, and Kyungmook Lee
Like today’s emerging giants, Samsung faced a paradox: The tightly integrated business system that worked in its home market could not secure its future in global markets. So into an organization focused on continuous process improvement, Samsung introduced a focus on innovation.
Supply chain management six sigma: a management innovation methodology at the Samsung Group on Supply Chain Management: The International Journal
by Emerald Management First
Samsung’s effort and investment has turned out to be fruitful. Their SCM six sigma program has produced highly qualified and talented SCM specialists, who are currently training the methodology to other members in their organizations and leading SCM projects.
An Analysis of Sources of Risk in the Consumer Electronics Industry on Journal of the Operational Research Society
by ManMohan S. Sodhi, Cass Business School and Seongha Lee, Samsung
The consumer electronics industry is a $ 240 billion global industry with a small number of highly competitive global players. We describe many of the risks associated with any global supply chain in this industry.
Then we analyze these case studies and extract information related to supply chain management which is summarized as below;
7 Supply Chain Transformations
Conclusion
The secret sauce behind Samsung’s supply chain success is definitely “Best Practice Analysis”. They study how other world’s leading companies manage business and choose to adapt these best practices gradually.
Editors Note: Original article posted on SupplyChainOpz
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Related: How Apple Has the Power to Make or Break a Supply Chain Supplier