Analysis and Outlook of Supply Chains of Samsung

This presentation provides an analysis and outlook of the supply chains of Samsung, including the raw materials used and sourcing strategies. It also discusses the supply strategy and capacity issues faced by the company.

ANALYSIS AND OULOOK OF
SUPPLY CHAINS OF SAMSUNG

 Introduction
 Section 1
 Section 2
 Section 3
 Section 4
 Conclusion
 References
TABLE OF CONTENT

 Supply chain management is the management of the flow of goods and
services which includes various processes that transfer raw material into
final produced goods and services. It consists of active reorganization of
business supply related activities in order to enhance consumers’ value
along with gaining competitive advantages as well within the market
space.
 This presentation will consist of supply chain structure of Samsung
Company along with the raw material that has been used largely by the
firm in order to produce their products. Apart from this, the presentation
will also highlight the concept of raw material sourcing as well as global
sourcing strategies in context of purchase of raw material also will be
discussed.
INTRODUCTION

 Samsung electronics is a South Korean
multinational electronics and information
technology company having headquartered in
Samsung town, Seoul. Company operates in
61 countries across the world along with
approximately 160,000 employees working
over there. The Samsung’s position is
dominant in the television segment within the
market space.
 Silicon dioxide is the major element that has
been used by the organization which is mined
from the earth as Silica sand or locations like
Cape Flattery in Australia.
SECTION 1- INTRODUCTION TO
CASE STUDY

 Silicon dioxide is the most plentiful element
available in this earth and used in many products
along with electronics items. The element has been
used by Samsung in order to speed up the
performances of CPU’s, LCD’s as well as LED’s.
Hafnium is another material that has been used
recently by firm for control rods of nuclear reactors
which are used to control the fission rate of
uranium and plutonium. Personal computers,
workstations, laptops, mobile phone devices,
televisions, Smartphone’s etc. are just has been
prepared with the usage of such kind of material.
CONTD.

 Raw materials are the back bone of any product because it is the one who ultimately
combines to form final product which has been used by consumers in order to satisfy
their needs and desires.
 According to me the purity of the raw material is the primary thing which confirms
that the material is fit for consumption and is free from any kind of contaminants
such as microbial contamination or excess heavy material.
 At the time of choosing material for production of goods, there are few major factors
that needs to be focused are:
1. Cost of material
2. Material properties
3. Form of raw material
4. Toxic materials
5. Rules and regulations regarding that raw material
SECTION 2- REFLECTIONS ON THE
RAW MATERIAL SOURCING

 Selecting the right supplier helps the organization to meet he customers’
demands for higher quality ingredients and also enables the firm to meet
high regulatory standards.
 Such principles include:
1. Cultural fit- it also includes values
2. Cost of the material- covering price as well as total cost of opportunity
3. Value- it includes value for money and generation opportunities value
4. Previous experiences in the market
5. Flexibility of adaptation
6. Response to change in terms of products as well as orders received
7. Quality- including product as well as service quality
CONTD.

 In order to supply the raw material i.e. Silicon Dioxide
by Samsung, the company adopts supply chain
operations reference model to supply the raw material in
most efficient and appropriate manner.
 According to this model Samsung initially Plan which
includes demand and supply planning and management.
It determines business rules in order to improve and
measure supply chain efficiency.
 The next step is Source which describes sourcing
infrastructure and material attainment. It helps to
describe the way to manage inventory, supplier network,
agreements and supplier performances.
 Third step is to Make which includes manufacturing
process or production activities such as packaging,
staging, product and releasing. It also includes
management of production network, facilities as well as
equipments and transportation.
SECTION 3- SUPPLY STRATEGY BY
SAMSUNG

 Next step is to deliver the material to another
required firm which includes receiving orders
and invoicing them once the material has been
received. It includes management of finished
inventories, assets, etc.
 Last step is return in order to return back the
packaging or any kind of defective material
received by the receiver company. It includes
business rules, return inventory, transportation
as well as regulatory requirements.
CONTD.

 Advantages and challenges of supply chain
management that has been used by Samsung are:
1. Cost efficiency
2. Enhance output
3. Avoids delay in procedure
4. Easily identify problematic areas
5. Better collaboration of activities
 However, certain disadvantages include:
1. Expensive to implement
2. Complicated
3. Requires trained staff members
4. Lack of reliability
CONTD.

 Single sourcing is the result of vary conscious decisions usually made by the
purchasing department.
 There are few disadvantages with the usage of single sourcing strategy for
the business are those:
1. If there is only one source available, then it becomes more difficult for
the buyer to ensure in order to keeping their company competitive.
2. In terms or duration of tight supply, the buyers may be at disadvantages
in being able to ask other suppliers in order to accept orders.
3. Hidden costs associated with different cultures and time zones.
4. Exposure to financial and political risks in countries with emerging
economies.
5. Enhanced the risk related to the loss of intellectual properties.
6. Increased monitoring costs that are related to domestic supply.
SECTION 4- ADDRESSING
CAPACITY ISSUES

 Capacity issues has been resolved with the effective usage of capacity
management that is a core strategic procedure or practice in order to
understand the capacity of Samsung and the factors that affect the capacity
of services is a key element of building appropriate service level
agreements. New solutions in order to address the capacity issues are:
1. Usage of centralized platform in order to track competency across the
matrix organization.
2. Use effective capacity planning strategy to manage pipeline as well as
ongoing projects.
3. Forecast Samsung future capacity to maximize billable utilization.
4. Implement a work flow for allocation of resources.
5. Enhance profitability by reducing bench time with the help of effective
capacity management.
CONTD.

 The above newly constructed strategies
in order to resolve the issues related to
capacity issues has been adopts because
this approach helps the organization to
plan new strategic projects in an
efficient manner. Resource managers
stay forewarned for future potential
projects and future resource demands
that need to be raised in near future
terms. A well crafted workflow is
important to get the resources on time
and also make the stakeholders aware or
informed about their resources along
with their allocations avoiding any kind
of pointless discrepancies.
CONTD.

 From the above report it has been concluded that there are various
resources or raw material that are required by the company in order to
make their production successful for the satisfaction of the needs and
wants of the customers. The presentation is about the Samsung Company
which described the factors related to raw material sourcing as well as
capacity issues along with resolutions in order to make an appropriate
business in the market place.
CONCLUSION

 Tian, D., Li, H., Xu, L. and Li, Y., 2019, July. Technological Change and
its Impacts on Supply Chain Evolution: The Case of Samsung Group.
In 2019 16th International Conference on Service Systems and Service
Management (ICSSSM) (pp. 1-6). IEEE.
 Haizar, N.F.B.M., Kee, D.M.H., Chong, L.M. and Chong, J.H., 2020. The
impact of innovation strategy on organizational success: A study of
Samsung. Asia Pacific Journal of Management and Education, 3(2), pp.93-
104.
REFERENCES