Comprehensive Analysis of Samsung's Supply Chain and Raw Materials

This report provides a comprehensive analysis of Samsung's supply chain management. It begins with an introduction to supply chain management and then focuses on Samsung Electronics, detailing the company's operations and global presence. The report identifies silicon dioxide and hafnium as key raw materials used in Samsung's products and discusses the importance of raw material purity and sourcing considerations, including cost, material properties, and regulatory compliance. It further explores Samsung's supply strategy, referencing the SCOR model and highlighting advantages and challenges of their supply chain. The report also addresses capacity issues, examining the disadvantages of single sourcing and proposing solutions such as centralized platforms, capacity planning, and workflow implementation to optimize resource allocation and strategic project planning. The report concludes by summarizing key findings and referencing relevant research.

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.