SUPPLY CHAIN MANAGEMENT OF SAMSUNG SAMPLE
Section 1 – Introduction to the Case Study
Founded in 1969, the electronics company Samsung deals with the production of electronic goods for customers around the world. Initially, Samsung bought the Korean company dealing with semiconductors and launched its business. Samsung deals with the development of led television sets and mobile phones. Under the leadership of Kun He Lee, Samsung rose to the height of success and became one of the largest producers of memory (Alimirruchi and Kiswara, 2017). The present case study will focus on discussing the structure of the supply chain and the factors considered in the procurement of raw materials of the company titled Samsung and addresses the challenges related to the procurement of raw materials.
Section 2 – Reflections on the raw material sourcing
The supply chain structure of Samsung is based on certain important factors such as the competitiveness of cost, the capacity of manpower, delivery of products on time, management of risk, and the competitiveness of the suppliers (Chen et al. 2017). The company focuses on the effectiveness of social, environmental, and economic aspects of the operation relayed to the supply chain.
Factors for procurement of raw materials
The followings are the factors related to the procurement of raw materials sourcing of Samsung.
- Supply of the resource- oneof the important factors in the procurement of raw materials of Samsung is the continuous supply of the raw materials required for the production of smartphones (Soon and Wallace, 2017).
- Quantity of the resource- in the procurement of raw material Samsung focuses on the quantity of the raw materials.
- Quality of the material- another important factor in the procurement of raw material for mobile phones is quality. The quality of raw materials is indeed the major factor to make the product a successful one in the market. If the quality of the raw material is poor then the final product will be a complete waste and will not be sustainable (Ghadimiet al. 2018).
- Storage of raw material- storage of raw material is another factor in the procurement of materials for developing a mobile phone. There should be adequate space to store the raw materials which will be used in the making of mobile phones.
- Organization of raw materials- Samsung focuses on the organization of the raw materials effectively.
Principles of good practice to apply for selecting a supplier
The followings are the principles of good practice that can be applied for selecting a supplier,
- Integration of supply chain management system and operating on a digital platform.
- Reliability is important on the supplier’s part. If they are not efficient in their supply then this may hamper the customer service (Chen et al. 2017).
- Quality checks of the needs of supplies should be consistent. Suppliers who supply poor quality raw materials will hamper the image of the company. The customers will accuse the company of the production of poor-quality products and not the suppliers. Hence, suppliers with consistent quality products should be chosen.
- Strong and effective communication there should be strong and effective communication with the supplier. Clear communication with the supplier is required to be applied in selecting a supplier (Ghadimiet al. 2018).
- Creation of effective tools for planning of quality supply chain management and selecting the right suppliers.
Section 3 – Reflections on the raw material sourcing
Purchasing techniques is stated as the most intrinsic and excellent methods that helps the company to maintain its production and costs. Raw materials are essential that aids the main products quality maintained. Purchase decision and the quality of the raw materials are extremely essential to make for bringing the new dimension in business. The evaluation of the raw materials is the area that helps in serving and servicing. The mechanism of the raw materials infused with the quality of the main or final products. As the quality raw materials are the key to a good final product. Apart from the good quality raw materials it is also a matter of looking that the price mechanism has to be maintained. The performance of final product is depending on the quality of the raw materials. Not only is the quality, however, the price factor also essential to maintain. If the price factor of raw material is overlooked then it may be a financial threat for the company. The study reflects on the leading brand Samsung and its raw material purchase techniques. As Samsung is a global leading brand with extremely good quality product and service (Soon and Wallace, 2017). Therefore, it is a subject to take care and pay attention to make firm decision about purchasing the raw materials and fixes up the price (Soon and Wallace, 2017). They not only making right choices on raw material purchasing, however, they are also looking for the delivering, serving, servicing, customer care, and product performance.
Section 4 – Addressing Capacity Issue
In order to maintain the capacity management thatmakes the huge profit from the market it is extremely essential for the company to mention the supply chainmanagement (Wieland, 2021). Capacity is leads to the capacity and ability of the company. It is extremelyessentialto make and developed the capacity management for the company to as it leads to the ability and adaption management of the company. This paper has successfully discussed about the leading brand that does the business globally, namely, Samsung. Samsung is the second largest brand all over the world. They have brought all their material and the raw materials firm the Korea (Sitepu,et al. 2018). Capacity management of the company is related with the act of business and it leads to the production and the productivity of the company. Samsung has adapted in the new busies style that relate with their risk management, security coding, talents management and strong performance that generates the incentives structure to the exiting employees. Samsung has managed the tight control over the inventory management;they have ensured their smart factorypolicy. The capacity management of the company is essential foraccelerant the business process and makes huge profit out of these competitive advantages from the market (Sitepu,et al. 2018).
By applying the capacity managementSamsung can make hugedifference in theirbusinessdimensions. Under all situations, even in this global economic meltdown the company canachieve the sustainablesuccess from the market, precede the sell and make firm decision about their purchasing and raw materials supply (Soon and Wallace, 2017).
Reference list
Alimirruchi, W. and KISWARA, E., 2017. Analyzing Operational and Financial Performance on The Financial Technology (Fintech) Firm (Case Study on Samsung Pay) (Doctoral dissertation, FakultasEkonomika dan Bisnis).
Chen, X., Xi, Z. and Jing, P., 2017. A unified framework for evaluating supply chain reliability and resilience. IEEE Transactions on Reliability, 66(4), pp.1144-1156.
Ghadimi, P., Toosi, F.G. and Heavey, C., 2018. A multi-agent systems approach for sustainable supplier selection and order allocation in a partnership supply chain. European Journal of Operational Research, 269(1), pp.286-301.
Sitepu, S., Mawengkang, H. and Husein, I., 2018. Optimization model for capacity management and bed scheduling for hospital. In IOP Conference Series: Materials Science and Engineering (Vol. 300, No. 1, p. 012016). IOP Publishing.
Soon, J.M. and Wallace, C., 2017. Application of theory of planned behaviour in purchasing intention and consumption of halal food. Nutrition & Food Science.
Wieland, A., 2021. Dancing the supply chain: Toward transformative supply chain management. Journal of Supply Chain Management, 57(1), pp.58-73.
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