Logistics Management at Samsung Electronics

Running head: LOGISTICS 1
LOGISTICS
Student’s name
Institution

LOGISTICS 2
Logistics
Introduction
Studies define logistics as the process implementing, planning, and controlling the flow
of goods and services from the manufacturers to the consumers (Ghiani, Laporte & Musmanno,
2013).. Also, logistic pertains to the integration of inventory, transportation, information,
warehousing, and material handling. The discussion analyzes, logistic management at Samsung
electronics. The main functional areas of logistics management at Samsung Electronics are, and
related theories are examined. The report analyzes the critical interfaces of logistics at Samsung
Electronics, such as production, marketing, accounting, and finance. Moreover, a detailed
analysis of the current order processing system at the company is undertaken. Finally, the reports
evaluate the inventory management policies about Samsung Electronics and related theories.
Samsung Electronics is a South Korean company which was founded in the year 1938
(Jung, 2014). The company manufactures various electronic appliances and mobile devices.
Samsung Electronics headquarters are located in Suwon, South Korea. Samsung is a
multinational company and considered the second largest technology company around the globe
regarding revenue generation and market share. Samsung logistics are the largest across the
world since it has more various manufacturing and assembly plants in more than 82 countries
around the world (Moon at el.,2013). Samsung has obtained high market share around the globe,
and it is considered the leading company in terms of mobile and smartphone market.
Interfaces
Logistics with production in Samsung Electronics.

LOGISTICS 3
Kovacs & Kots argue that, the relationship and coordination between the production
process and logistics management make it capable of a business enterprise to generate good
revenue (2016). In the case of Samsung electronics, logistics management support, and effort
leads to a meaningful production output to the company. According to a survey conducted on
value chain analysis, the production process is crucial since it highly contributes to the product
value (Coimbra, 2013). The main aims of the logistics management process are to resolve issues
regarding logistics on large scale manufacturing companies such as Samsung Electronics.
Therefore, in the case of Samsung Electronics, the production logistics department has
the sole role of managing the two main production lines (Wy at el., 2011). The productions lines
include; the handling of raw material and finished goods line and the transport line. Handling of
raw material is an essential task in manufacturing companies. Samsung has well-equipped
warehouses that enable storage of raw materials required during the production process. On the
other hand, finished goods should be stored in a different warehouse before they are supplied to
the consumers. Samsung is one of the companies which has a wide range of supplies that
distributes their products to the final consumer at their place of convenience.
Studies show that protective packaging is significant in logistics and customers
satisfaction (Chang, 2011). Good protective packaging serves as a better tool for the company's
bland. Also, there is some guarantee that the product will reach to the final consumer in the right
conditions as the manufacturer intended it. Additionally, protective packages reduce cost, which
might result from damaged products, labor cost, and returned products.
Recent reports from Samsung Electronics show that the company is intending to replace
the packaging of its products materials with papers and some other environmentally friendly
material. Also, the company is coming up with innovative ideas for designing better protective

LOGISTICS 4
packaging materials for its products. For instance, they intend to replace the plastic holder trays
with pump molds. Also, they intended to replace plastic bags that are used for protecting home
appliances such as TVs, air conditionals, washing machine, and refrigerators with bags
containing materials that can be recycled.
Marketing of Logistics at Samsung Electronics company
Place
Place plays a significant role in marketing logistics. According to studies, the place
makes it possible for a business organization to establish a link between the customer and the
logistics provider (Christopher & Peck, 2012). However, the business organization should ensure
that the customers is not aware of the difficulties encountered in logistic process. Customers
value the output rather than the process itself. Thus, it is advisable for a business organization not
to expose the methods that are used during the execution of logistics to the customers.
Additionally, the location of the industry, the warehouse, and the customer can have an impact
on the marketing logistics process mainly through an increase or a reduction on the costs.
Reports show that Samsung Electronics took various step regarding the logistics market.
The company is highly involved in the management of suitable terminals such as Noi Bai, to
makes sure that the company's products are delivered on time. Studies show that Noi, Bai is the
largest export portal, of Samsung Electronics (Fletcher at el., 2013). Thus, Noi Bai has well-
developed warehouses where Samsung products are received before export.
Price
The business organization should make price decision by evaluating internal and external
factors. Therefore, marketing logistics should take into account the price drives such customers