Supply Chain Management

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In the beginning a supply chain management (SCM) was used for inventory management and cost reduction in operations. The Samsung Group is a global leader in manufacturing, financial, and services in areas of shipbuilding, textiles, chemicals and electronics to name a few. “The Samsung Group of companies has large, complex global supply chains in most of the products it manufactures and makes extensive use of SCM solutions and process innovations to support and improve its operations” (Yang, H.m Choi, B., Park, H., Suh, M., and Bongsug, C., 2007). In 2004, the company felt that the SCM had room for improvement. They put together the SCM and six sigma approach to improve activities of the SCM. A six sigma system is a tool used by businesses to improve their processes, reduce defects and increase profits. Samsung Group researched other company’s six sigma approaches and applied similar needs to their company. The implementation of the new SCM and six sigma system has been fruitful for Samsung Group. The projects are more disciplined, monitored and the outcome shared for future improvements to the SCM. Due to these changes made by the company in their SCM, they have achieved improved operations, processes and profits. The company’s profits have increased since the 1990’s and its Samsung Electronics Company posted profits in the billions in 2004, one of two manufacturing companies to do so that year. The Samsung Group’s innovations to improve and support its operations have lead to its successes.

Supply chain management six sigma at Samsung (Yang, H.m Choi, B., Park, H., Suh, M., and Bongsug, C., 2007) retrieved from internet January 22,2013, from
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