Supply Chain Strategy & Processes

This assignment discusses the sourcing strategy, local vs global sourcing, and distribution network of Samsung in comparison with Apple. It explores the use of intermediaries in the distribution network and highlights the importance of effective sourcing and distribution processes.

Supply Chain Strategy
& Processes
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Table of Contents
INTRODUCTION ..........................................................................................................................3
Question 1 .......................................................................................................................................3
a) Which sourcing strategy is adopted by this company?...........................................................3
b) Local vs global sourcing, single or multiple sourcing?..........................................................3
Questions 2 ......................................................................................................................................3
a) Explain Distribution network after production.......................................................................3
b) Is the company using any intermediaries for the distribution network after production?......4
CONCLUSION................................................................................................................................4
REFRENCES...................................................................................................................................5
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INTRODUCTION
Supply chain strategy is considered as process which help in evaluating cost benefit and
trade offs of components related to operations. It is also considered as procedure used by a firm
in order to delivering products from raw material to potential customers (Ansari and Qureshi,
2015). Organisation selected for this assignment is Samsung which is conducting its business at
conglomerate industry, it is founded by Lee Byung Chul in 1938. Its head office is located at
South Korea and they offer they products at worldwide level. Aim of conducting this report is to
conduct comparison of Samsung with Apple by understanding their sourcing strategies, local and
global sourcing and distribution network.
Question 1
a) Which sourcing strategy is adopted by this company?
Sourcing strategy is considered as approach for the supply chain management which help
a company in formalize the information so that it can be used for consolidate purchasing power.
Sourcing strategy of Samsung is that they develop or build strategic partnership with the top
performing suppliers as well as they have mutual trust (Responsible Management of Supply
Chain, 2020). Through this respective company able to adopt a fair as well as transparent
procedure which help them in gaining gaining competitive advantage in comparison with Apple.
b) Local vs global sourcing, single or multiple sourcing?
Samsung conduct their business at the international level and they offer wide range of
products related to apparel, electronic electronic, medical equipments, home appliances,
telecommunication equipments and so on. So in order to manage their local and global sourcing
activities in effective manner they use multiple sourcing, in which used by a company in order to
serve different vendors (Brusset, 2016). Respective company have main two distribution centres
located in Suzhou and Tianjin which help them in handling global supply chain successfully.
Questions 2
a) Explain Distribution network after production.
In order to distribute their wide range of products and services Samsung use multiple
channel of distribute. According to which respective company manufacturing unit supply
products to C&F agents (one is located at every state), then agents supply products to different
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distributors, big retailers, retail chains and franchise outlets. After this, big retailers will supply
products to small dealers as well as franchise outlets will supply products to digital plazas,
homes and workshops (Maiga, 2016). Through this they able to reach potential customers and
convince them to purchase their products.
b) Is the company using any intermediaries for the distribution network after production?
Samsung is conducting their business at the international level and for that they use
different intermediaries in order to distribute products after production in effective and
successful manner (Ntabe and et. al., 2015). These intermediaries are distributors, retailers,
franchiser and so on at different locations as well as through this they able to gain competitive
advantage from Apple.
CONCLUSION
By above discussed point it can be determined that every company need to design
effective sourcing process in order to deliver their products and services in effective manner. In
this they need to determine whether to select single sourcing or multiple sourcing, this is so
because through it they able to determine way for reaching potential customers. Company also
need to determine distribution networks for their products.
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Illustration 1: Distribution network of Samsung
(Sales and distribution management of Samsung
and LG. 2020)

REFRENCES
Books and Journals
Ansari, Z. N. and Qureshi, M. N., 2015. Sustainability in Supply Chain Management: An
Overview. IUP Journal of Supply Chain Management. 12(2).
Brusset, X., 2016. Does supply chain visibility enhance agility?. International Journal of
Production Economics. 171. pp.46-59.
Maiga, A. S., 2016. Assessing the impact of supply chain integration on firm competitive
capability. International Journal of Operations Research and Information Systems
(IJORIS). 7(1). pp.1-21.
Ntabe, E. N. and et. al., 2015. A systematic literature review of the supply chain operations
reference (SCOR) model application with special attention to environmental
issues. International Journal of Production Economics. 169. pp.310-332.
Online
Responsible Management of Supply Chain. 2020. [Online]. Available through:
<https://www.samsung.com/us/aboutsamsung/sustainability/supply-chain/>.
Sales and distribution management of Samsung and LG. 2020. [Online]. Available through:
<https://www.slideshare.net/vijayantkhurana/sales-and-distribution-management-of-
samsung-and-lg>.
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