Samsung Supply Chain Management

The provided report focuses on the operational decision-making process within Samsung, exploring essential concepts, methods, and managerial frameworks available to its managers. It emphasizes the importance of supply chain management and technological advancements in Industry 4.0 for Samsung's growth and success.

MANGING OPERATIONS
AND SUPPLY CHAIN

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Part 1 – Scenario.........................................................................................................................1
Part 2 – Literature Review..........................................................................................................2
Part 3 – Changes going to be observed by Samsung..................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Today, supply chain management is seen as one of the most important aspect of an
organisation to take it further in achieving its set goals and objectives. The below report
identifies the industry report of Samsung. Samsung is a South Korean multinational
conglomerate headquartered in Seoul. The organisation was founded in 1938 and its known for
its manufacturing of technological products and services. The below report identifies main
products or services provided by the organisation (Brdulak, 2016). The report develops a
literature review charting the concept of the fourth industrial revolution. Along with it, the report
explains in what manner the company is going to be changed in the upcoming future from the
usage of important theories and concepts.
MAIN BODY
Part 1 – Scenario
The chosen organisation for the development of the report is Samsung. Samsung is a
multinational conglomerate headquartered in Samsung town, Seoul, South Korea. The company
was founded in 1938 and is one of the biggest and the largest companies in the world. In its first
three decades the company diversified itself in areas including retail, insurance, securities, textile
and processing (Camerinelli, 2016). It entered the market of electronics industry in late 1960's
and into the shipbuilding and construction industries in the mid 1970's. As of 2017, the company
is said to hold the 6th highest brand value in the globe and in particular it has globalised its
activities and electronics. Today, its semiconductors and mobile phones have become its most
important income sources and its profits are increasingly rising due to the large consumer
demands and manufacturing of innovative products.
The size of the organisation is large and the dominant sector in which its plays its major
role is electronics (Ross, 2015). The company is having a huge range of products and services
such as TV's, tablets, smartwatches, desktop computers, virtual reality headsets, home theatre
and audio, printers, monitors, laptops, memory parts and semiconductors, home appliances and
monitoring/security concerns, mobile phones etc.
The main customers of Samsung are the buyers and users of electronic products. Along
with it, the company's earns large sums of revenue from the selling of mobile phones.
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Part 2 – Literature Review
As per the views of Cummins (2016), the fourth industrial revolution has came into
existence due to the arrival of new technologies and developments in the new world. This
revolution is associated with factories and other areas of organisational activities such as global
supply chain management. The concept of this revolution tends to go beyond a single company
and it is carried over in networking links between organisations. The data in these networks of
links is integrated in processes and a cloud. It is organized along as a supply chain in the form of
virtual space.
Similarly Peltier (2016), states that this revolution is the major one since the initial
revolution occurred in the 18th century. It is identified by the fusion of technologies which are
blurring the lines between the biological, physical, and digital spheres which are collectively
knows cyber-physical systems. Emerging technological breakthroughs in the number of fields
including artificial intelligence, biotechnology, nanotechnology, internet of things etc. are the
ones which have majorly dominates the 4th industrial revolution.
However Pentek (2016), states that in the early 19th century when technology and
technological products were not a large part of the market. People tend to make use of easy
services which were available in the local markets where they used to reside. Between the
decades of 1930 to 1970, technology started setting its foot across the globe and western
countries such as America and United Kingdom were the major ones which were producing and
developing technological products to transform their nations and in order to provide better
products and services to their own people.
According to the views of Dixon (2016) and Hermann (2016), the major reasons which
has made the revolution a successful one is the arrival of information technology. Information
technology has allowed individual organisations across the world to transform themselves in
terms of growth and development. It can be seen as the organisations and companies across the
world cannot perform in the global market without the help of information technology and other
technological advancements. The rising demands in the technology and technological products
has made companies across the world to easily transport, promote and sell their products to their
consumers worldwide. Also, it is one of the major reasons which has made the digital
technologies a huge success and has provided power to 4th industrial revolution.
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As per Otto (2016), after the late 70's the technology started developing and growing
rapidly because at this time the consumers across the world were becoming aware of the
technological products such as Television sets, radios, refrigerators, etc. These products were in
large demands because they provided the people with an ease of performing their actions. Also,
technology also helped them as a source of entertainment (such as Television and radio) and
transformed the way they see their world.
According the views Sarkis (2017) and Camerinelli (2016), the arrival of internet was the
biggest change that brought 4th industrial revolution into existence. Internet brought a variety of
cultures, opinions, different views of people, individual lifestyles, awareness etc. into existence.
Also, it made easy for people to choose as per their particular set wants and needs. It is one of the
most important change in the history of humanity which brought cultures together and created a
world where technology became friends with human beings.
According to Slack (2018) these developments led to an entirely new era of technology
which the world hasn't seen before. Technology become more advance than just fulfilling the
needs and demands of the people. Robotics made their path in factories where workers used to
work as per their potential to build products and services. Arrival of robotics made it easy for the
organisations to manufacture their products and services. Artificial intelligence became more
popular in serving the needs of the people and the companies. Biotechnology, internet of things,
quantum computing, etc. took place and the 4th generation industrial revolution become a huge
success. Also, it was one of the major developments since today which helped organisations
across the world in fulfilling their personal and consumers needs as well.
Similarly, Fredendall (2016) states that after the internet made its roots in the world since
1995 to 2010. The technologies started growing as per the rising demands and needs of people
and the organisations across the globe also developed themselves as per the needs to their
consumers. Technology replaced the manpower and the businesses constantly invested in new
research and development to gain better market advantage and growth.
Part 3 – Changes after application to be observed by Samsung
In the new model of industry 4.0 the planning process of the Samsung is transferred in
the distribution area. It will allow the organisation to transform itself in producing products
easily and creating an environment where the products and services are being sold to the
consumers easily. This will maintain a strong market-hold of Samsung as right now, its products
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and services are scattered and the organisation finds it difficult to manage them properly. It is
important for the Samsung to deliver better products and services and maintain organisational
efficiency in order to get desired profits and maintain consumer advantage. In the new model, the
sales data is directly going to be collected from end customers and from the finished products.
Collection of sales data in this manner is going to avoid the uneven sales for the company. The
company will be easily managing its information on sales and accounting. It can make the
organisation achieve better results in management of its data and systems in the upcoming years.
Data on the behaviour of the customers will be made available to other entities as well.
For example, to health care units and insurance companies. This data would help Samsung to
understand in what manner they should be producing their products and services to get the full
benefits from their consumers. For example, the gathered data as per the behaviours of the
consumers in buying its health-conscious smartwatches and devices will be provided to medical
experts and organisations such as WHO. These organisations can help Samsung to develop its
products and services in a manner where its consumers will be getting best results from the
manufactured products of the company. These factors can help the company to reach at global
heights and produce products which are going to be growth and success oriented.
Collection of these data will be beneficial for the company's research and development
department. The data will help the company's R&D department in development of products and
services in the future product models of its mobile phones and other technologies. The
production manner is also going to change in Samsung. It will be automated completely, and the
process of production will be transferred into the so-called cloud systems where the production
will be managed without any disruption.
The fourth industrial revolution application in a supply chain also includes distribution
channels developments. The distribution channel development is going to provide the
organisation with direction to achieve set growth and success. For example, the current
distribution channel only deals with fulfilling the organisational goals and maintaining its
standards. The fourth industrial revolution application is going to allow the distribution channel
to be a more comprehensive way of dealing with things. Such as, it is going to be more open and
the consumers needs and demands on each of the products will be fulfilled and satisfied. Also, it
is going to maintain the set standards of Samsung with the technological industry and among its
consumers as well.
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The new model is also going to enhance the personalisation of the products and services
sold by the Samsung. Such as today, it is difficult for the company to produce products and
services which are made according to the personal needs of an individual customers (Hermann,
Pentek, Otto, 2016). The organisation can develop such products on mass level from the arrival
of Automation and artificial intelligence. This can help the company to reach new markets and
achieve set growth and development as per the set individual needs and requirements. Overall,
the company is going to observe a raise in its consumers demands and products. It is going to
increase its profitability on large levels and would allow company to grow in the consumer
markets.
The process of cloud computing is going to allow the organisation to enhance its data
storage for longer time periods. This can help the organisation in maintain a stronghold over the
sold products and services of the organisation (Cummins, Peltier, Dixon, 2016). The storage of
data for longer time periods can help the company in understanding how effectively the
organisation was performing in the due period and what efforts it needs to make right now to
change its current products and services. The data can be used in analysing the important
information and understanding the needs of the company and its consumers both at the same
time.
The new model can maintain a better growth for the overall organisation and can make it
reach new markets. Along with it, the company is going to observe a set of development options
in fulfilling its overall consumer needs and demands. This model will enhance the products and
services of the company to a large level and to a great extent (Brdulak, 2016). Along with it, the
development will ensure the organisations reach to a global marketplace and at reaching new
places.
CONCLUSION
The above report explores the important key concepts, techniques and managerial
frameworks available to the managers of operations in Samsung to enable an effective decision
making process. It demonstrates the practical and conceptual understanding of the constraints
and opportunities which the organisational characteristics place on the managers of operations
and on the operational decision making the context of supply chain of Samsung. At last, the
report develops an important understanding of the 4.0 industry and the technological
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advancements which are going to help the Samsung as per the new revolution to enhance its
market reputation and growth.
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REFERENCES
Books and Journals
Brdulak H., 2016, Rola handlu internetowego w budowaniu nowego modelu biznesu w
łańcuchach dostaw [The role of internet commerce in building a new business model in the
supply chains], materials from the conference „Budowanie łańcuchów dostaw jutra”, 26-
27.09.2016, publication on CD-ROM.
Camerinelli, E., 2016. Measuring the value of the supply chain: linking financial performance
and supply chain decisions. Routledge.
Cummins S., Peltier J., Dixon A., 2016, Omnichannel research framework in the context of
personal selling and sales management: a review and research extensions. Journal of
Research in Interactive Marketing. 10(1). 2-16.
Fredendall, L. D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
Hermann, M., Pentek, T., Otto, B., 2016, Design principles for industrie 4.0 scenarios. In System
Sciences (HICSS), 2016 49th Hawaii International Conference. IEEE. 3928-3937.
Ross, D. F., 2015. Distribution Planning and control: managing in the era of supply chain
management. Springer.
Sarkis, J., 2017. Greener manufacturing and operations: From design to delivery and back.
Routledge.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
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