Apply It/e-Commerce in Samsung Supply Chain

3. Apply IT / e-commerce in Samsung supply chain.

Samsung applies many IT/e-commerce systems in their supply chain.

➢ The inventory issue of Samsung Electronic Inventory:

Samsung uses Adexa software to increase accuracy of demand forecast through a consensus base on forecasts, updated every customers’ information. There are global operator centers to monitor the supply and demand of products in the major business units of Samsung.

Samsung also uses Microsoft Business Intelligence (Bi), Samsung Electronics is expected to improve the accuracy of forecasting the demand for more than 20%, increase the reliability of the forecast. Now the inventory of Samsung may at lowest level in the electronic industry.

IT/ E-commerce can help Samsung decreases nearly 3 million / year from reduced inventory and improve the level of demand forecasting and delivery, monitoring customer needs.

Samsung also uses Slim- a set of methods and scheduling application for time management cycle, including:

+ Cycle count methods and objectives of the work in process for the separate production steps.

+ Use the scheduling algorithm for the plant.

+ Optimization based on analytical capacity: Samsung has implemented in all its production facilities. It reduces the production cycle times. Memory devices random access reduces from 80 days to less than 30. Samsung can reduce cycle time easily by reducing all the level of production or by applying computer control process

➢ The process of purchasing

Samsung has implemented the program "Eco-Partner". This program applies to all suppliers of core products, parts, components and raw materials (including packaging materials) by Samsung. With this program, Samsung request for suppliers of raw materials and components as mentioned above to ensure two main criteria:

• Suitable for Samsung Electronics Standards in activities of the product.

• Demonstration of the environmental management system fully.

Both factors are monitored through rigorous certification process related to supplier documentation, audits and indoor testing. Example: The chemical supplier for Samsung, they must declare the environmental safety of their products. Providers must submit information on chemical products via e-CIMS.

A group of other suppliers is very important that the Samsung Group supplier of software products for Samsung. Samsung Group is a leader in the application of modern technology in business activities of the Group, especially the planning software. Samsung has a lot of software applications in planning from