Samsung's Innovative Products: A Supply Chain Management Perspective

The provided assignment content is about the supply chain management of Samsung, a leading information technology company. The summary highlights that Samsung's advanced and distinctive technology enables innovative products, contributing to revenue generation and sustainability. The supply chain management is complex and wide, focusing on four major areas: project discipline, sustaining results, well-established HR framework, and quantitative strength. Risk mitigation strategies include internal (manufacturing, business, and planning risk) and external risks (environmental, demand, and supply risks). Samsung uses a six sigma technology and has implemented KPI mapping, five design parameters, and systemization to mitigate risks. The company's technology plays a crucial role in creating competitive advantage by distinguishing products and services globally.

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Samsung Electronics
Global supply chain management
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GLOBAL SUPPLY CHAIN MANAGEMENT
Executive summary
The Samsung is a leading player in innovation and technology in a global market. The global
supply chain management of Samsung is wide and complex because it comprises of eight
countries network. The management of Samsung is very efficient and effective because the
company is focusing on four major areas which help it in off-shoring the decisions of a company
and it also helps it in using the location advantage of the particular country. The close
coordination of the global supply chain enables the company to reach at the second position by
its sustainable growth. The research and development of a Samsung also contribute to the
company’s supply chain network along with the revenue generation through innovative products
and services. The Samsung has adopted six sigma principles which help it in strong supply chain
management and continuously bring innovative products and services to the market. The
innovative supply chain methods and products are necessary for the survival of business in a
global market, and Samsung is spending yearly on such aspects of the business. The information
technology of Samsung is creating competitive advantage by innovating new technology through
the efficient and effective use of information system around the various global supply chain
network.
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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................5
Management across the globe..........................................................................................................5
Contribution of R&D.......................................................................................................................6
Supply chain risk & mitigation strategy..........................................................................................8
Role of technology in creating competitive advantage..................................................................10
Conclusion.....................................................................................................................................11
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Introduction
In this present paper, we will try to analyze the global supply chain management of Samsung.
We will also discuss the management of supply chain across the globe, contribution of research
and development in generating the revenue for the company, risk associated with supply chain
and role of technology in creating a competitive advantage.
The Samsung is a South Korean multinational conglomerate organization and it’s headquarter is
located in Samsung Town, Seoul. It was founded by Lee Byung-Chul in 1938. The Samsung
group is diversified into different areas such as electronics, food processing, insurance, retail,
textile, and others. The value and philosophy of a company are to develop a technology which
helps in the creation of superior products and services in such a manner that it will contribute to
the welfare of global society.
The global supply chain management is defined as the management of goods and services
globally. It comprises of services such as movement and storing of raw material, transferring of
finished goods from one place to another.
Management across the globe
The global supply chain management is required to manage all the business activities globally. It
provides a framework for the better assessment at different locations for locating supply chain
operations such as manufacturing, distribution, sourcing and others. The global supply chain
management helps to execute the supply chain in a dynamic global environment and to overcome
the challenges such as global increasing cost, risk, and complexity (Arora et al., 2016). The
management of these three challenges is a big challenge for a company because it plays a crucial
role in generating the profitability and stability of a company at a global level. The management
requires technical and political innovation which helps in moving global economic power. The
management helps in efficient and effective global process by reducing complexity. It also
creates a transparent global supply chain which helps in building clear visibility of a process.
The group of Samsung is the leading global manufacturer who is recognized for its
manufacturing, financing and services globally. The Samsung has large and complex global
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supply chain with extensive solutions to improve its supply chain management. The Samsung
has adopted advanced planning and scheduling system which leads to excellence at the
operational level. The company has adopted six sigmas for the management of global supply-
chain which leads to the company success. Following are the four key areas:
 Project discipline
The project discipline is adopted by Samsung for the efficiency and effectiveness of
work. The project delivery on time helps in improving the rate of project success. It also
helps in creating a framework which enables the thinking beyond delivery on time that
directly impacts on the growth of a company.
 Sustaining results
The sustainable results help in achieving long-term future goals and objectives of a
company.
 Well established HR framework
The HR framework acts as a nervous system for a company. The strong HR framework
of Samsung helps in the management of global supply chain in a most efficient and
effective manner.
 Quantitative strength
The quantitative strength of a company helps in building strong networking around the
globe. The Samsung is also focusing on strengthening the quantitative aspects which help
in smoothing of global supply chain management.
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Contribution of R&D
In today’s global business it is imperative for the companies to be innovative so that the
company can beat the competition which is very necessary for its survival. Research and
development play an important role in generating the revenue for the company. The research and
development help in the growth of a company through innovation and product development. The
innovation helps in creating competitive advantage which directly impacts on the profitability of
a company. The innovation is very necessary for competing in a global market in this emerging
trend of technology. The companies are investing in the research and development yearly so that
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the innovative products are produced according to the consumer’s needs and demands which
enhance the profitability of a company. The investors who are willing to increase the earnings
growth of a company that invests higher amount in research a development which helps in
innovation which directly ensures the long-term sustainable growth of a company. The research
and development help to analyze the market trends, consumer's taste and preference which help
in innovating the products and services (Bask et al., 2013).
The researchers have put together the methodology to formulate the combination of a six sigma
and supply chain management so that the staff will be trained in innovating new approaches for
the global supply chain management (Harper et al., 2013). The research and development help in
creating a useful and unique component of company's strategy which helps in continues
improvement of global supply chain activities. The Samsung research team has adopted a six
sigma approach at General electronic, DU-Pont and Honeywell. It is used to analyze the
perspective of other companies on the innovation application of six-sigma.
 General electronic
The company has researched that the GE is using six sigma approaches for the innovation
of products. The company is also using for tailoring the specific needs and characters of a
business unit, product innovation, system designing, implementation and others.
 Du-Pont
The company combines a six sigma with supply chain operational references which
creates a scope in five management processes which include planning, resourcing,
manufacturing, delivery and return. The approach is used for converting consumer’s
requirements into products and services. The six sigma approach acts as a qualify
function tool for the company.
 Honeywell
The company has developed a proprietary approach which is called as plus six sigma
approaches. It helps in bending the manufacturing concepts and tools which include value
stream map through process map.
The research and development team of Samsung has adopted six sigma principle with supply
chain operational references which help in enabling the growth of a company through
innovation. The SCOR model enables the scope of five management processes, which helps at
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the planning stage through research information about the consumer's taste and preference. It
also helps in the resourcing of products and services which are enabled through information
provided by the research team. The manufacturing of product and services are produced
according to the information supplied by researchers. The various delivery and return mode has
innovated by research and development team. The research and development help in providing
information which enables the innovation of product and services. The innovation directly
contributes to the growth and revenue generation of a company.
Supply chain risk & mitigation strategy
There are two types of risks which are associated with supply chain management. The risk
includes internal risk and external risk. The external risk includes demand risk, supply risk,
environmental risk, business risk, and physical plant risk. The demand risk is due to the
misconception of consumers towards the product and services. The supply risk is due to the
interruption in the flow of products and services. The environmental risk is due to economic,
government, climate, social and others (Wisner et al., 2014). The business risk is due to
management instability and others. The physical plant risk is due to insufficient physical
facilities and regulatory compliances. The internal supply chain risk includes manufacturing risk,
business risk, planning and controlling risk, mitigation and contingency risk, and cultural risk.
The manufacturing risk is caused due to disruptions of internal operations. The business risk is
due to changes in management, structure of reporting, business process and others (Chopra et al.,
2014). The planning and control risks are due to inadequate assessment and planning process.
The mitigation and contingency risk is because of not creating the alternative. The cultural risk is
due to delay in negative information.
The Samsung has adopted bottle neck check-up strategy which helps in ensuring the affect of key
performance areas. Following are the three mitigation strategies:
 Process of KPI mapping
The key performance indicator mapping helps in monitoring the process, and it also
defines the objectives towards the improvement of global supply chain management. The
process is followed by SCOR model. The six sigma help in increasing the credibility of
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CTQ-selection through decomposition of key performance indicator by detailing of
supply chain process of the SCOR model.
 Five design parameters
The organizational changes require a comprehensive and multi-faced approach. The
DMAEV apply five design parameters to characterize the changes according to the need
at all the stages of the process.
 Systemization
The systemization is adopted by Samsung as a key component of the global supply chain
management. It is used to change the effect of the change in process and behavioral
aspect. The systemization plays an important role in the six sigma of global supply chain
management. The systemization helps in mitigating the risk through effective changes in
the process.
The global supply chain internal and external risk is mitigating by diversified strategy.
The strategy adopted by Samsung involves Supply chain six management Sigma
methodologies which are adopted by the company and the analysis of risk at consumer
electronics industry. Following are the seven steps which are followed by Samsung for
mitigating the risk:
1. Listen to consumer’s demand
Samsung collect the information of consumer behavior and preferences through
sending employees at local MBA colleges and collect the information of the
particular region. The country specialist is also involved in maintaining
relationship with business partners and leaders. The information is collected at the
macro level according to the information collected for consumer's preference then
the product is designed accordingly, and the process is known as Quality function
development.
2. Adopt six sigma methodology
The Samsung is using a six sigma principle for the improvement of internal
operation which helps to mitigate the internal risk. The study of six sigma
approach based on the methodology is known as DMAEV, and its acronym is
define, measure, analyze, enable and verify (Youn et al., 2013).
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3. Cross functional team setup
The internal risk is increase due to improper communication channel among
different departments so by creating the cross functional team the internal
departments come closer which is also known as a voice of business. It enables to
take establish an action plan which is made through the internal collective
decision.
4. Utilization of advanced technology and scheduling system
The changes in the electronic market are uncertain, so the creation of flexible
production plan is used to mitigate the external risk of change in technology
which brings the remarkable success.
5. Steam line performance evaluation system
The Samsung has integrated a merit based system which enables high performers
to have the fast track career path. It helps to strengthen human resource of
Samsung.
6. Standardize processes and parts
The products are manufacturing in Korea which helps to achieve the economy of
scale by producing standardized process and products. It helps to manage the
quality of a product in a more efficient and effective manner.
7. Building of risk management system
Samsung has adopted a comprehensive risk management strategy which helps to
mitigate the risk through reducing the level of inventory, flexibility in capacity
and redundancy in suppliers.
Role of technology in creating competitive advantage
The technology plays an important role in this global era because there is a large number of
competitors who are competing with the same products and services. The technology helps in
creating competitive advantage through innovation of products and services which help in
differentiating the product at global market. The companies can gains competitive advantage by
producing innovative products and services which can be enabled through technological
advancement. The way of using technology helps in differentiating the products by creating
competitive advantage. The use of information technology helps to tackle the business problems
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which cannot be resolved by other companies which create a competitive advantage for a
company. The information technology creates a bridge between the business people and
technical people. The work done by technician and business people helps to achieve the goals of
a company. The business people need to study the management information system which is
very necessary for evaluating the technical issues. The information system enables to view
business problems from other prospective which helps in solving the problem by innovating new
ideas and strategies.
The Samsung has differentiated its products and services through technological advancement
which helps in creating competitive advantage. The Samsung has created a new fashion and
recommendation in a global market which helps in creating core competency of marketing. The
top management level of Samsung creates strategic development planning system. The Samsung
is the world's second largest information technology company according to its revenue, and its
sales network is spread across eighty countries. The company is a global leader in
semiconductor, digital media, telecommunication and digital convergence technology. The
business is mainly divided into five segments: digital media business, LCD business,
Semiconductor business, digital application business and telecommunication network business.
Samsung is an innovator in information technology products (Mo et al., 2014). The marketing
strategy, implementation, and execution of Samsung is derived by the vice president named
Johan sky. The Samsung is using TFT and CRF display products, monochrome laser and color
printers, fax machines and multifunctional devices for the users such as professional, SOHO
users and corporate. The information technology department of a company is also marketing
large screen plasma displays which are specially designed for professionals and commercial
markets The technology used by Samsung is advanced and distinctive which enable the
consumers to use innovative products. The information system of Samsung has contributed to the
revenue generation of a company in large amount. The technology creates a distinct quality of a
company which helps in achieving high revenue in a financial year (Markma et al., 2016).
Conclusion
The supply chain management of Samsung is very wide and complex. The management of
global supply chain is focusing on four major areas namely project discipline, sustaining results,
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well-established HR framework and quantitative strength. The management of Samsung is very
transparent and effective. The management of supply chain helps in reducing the cost, risk, and
complexity. It helps in building the visibility of process which is very necessary for a company
to work in a most efficient and effective manner. The Samsung network is spread across eighty
countries, so the management of supply chain is very important for the survival of business. The
management helps in coordinating all the activities of a business such as planning, organizing,
directing, and controlling. The research and development contribute to the revenue generation
and sustainability of business. The research and development team of Samsung is adopting a six
sigma technology which helps to enable the innovation of products and services. The Samsung
research team has tested the approach on GE, DU-Pont and Honeywell which helps to analyze
the implementation of an approach. The supply chain risk includes internal and external risk. The
internal risk includes manufacturing risk, business risk, mitigation risk, planning and controlling
risk, and others. The external risk includes environmental risk, demand risk, supply risk and
others. The supply chain risk mitigation strategy of Samsung the strategies such as the process of
KPI mapping, five design parameters, and systemization. The steps followed by the company to
mitigate the internal and external risk includes listening to consumer's demand, adoption of a six
sigma technology, cross-functional team setup, utilization of advanced technology and
scheduling system, steam line performance evaluation system, standardize process and parts, and
the establishment of risk management system. The technology plays an important in creating
competitive advantage by distinct the product and services in a global market. The Samsung is
world's second largest information technology company according to its revenue generation after
apple. The information technology helps in looking the business problem from another
perspective which enables the company to solve the problem. The innovation helps in the
survival of business in a long term. The innovation is created through problem-solving according
to the consumer's preferences. The technology used by Samsung includes TFT and CRF display
products, monochrome laser and color printers and others. The use of advanced technology helps
in creating a competitive advantage for Samsung. The Samsung is using distinct technology
which in maintaining the second position of a company in a global market.
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