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Question:

Produce an Analytical Report, Mapping and Analysing the Procurement and Supply Chain for a Chosen Company.  Present your results as both a Written Report detailing your Findings, and Improvement Programs AND a Google Sites Presentation of your Complete Analysis.
 
 

Answer:

Vision, mission and strategic targets of Samsung Electronics

The vision of Samsung Electronics is “Inspire the world, Create the Future’.  The vision of thee organization gives a reflection that commitment in order to inspire the communities through leveraging the key strengths of Samsung Electronics such as new technology,  innovative products as well as creative solutions (Samsung Australia, 2017). In addition, promoting for new value for the organization’s core network like industry, partners and employees is vision of Samsung Electronics. The company likes to contribute for better world and provide richer experience to the customers. As the part of mission and strategic target of the company, the company has mapped out a particular plan to reach $400 billion in the revenue as well as becoming top five brands by 2020. The organization is excited regarding the exploring of new technologies.

Findings of supply analysis

In the pursuit of global excellence, Samsung Electronics always looks for dynamic leaders capable to get competitive advantages in the digital age of 21st century (Wisner, Tan & Leong, 2014). The purposes of marketing procurement controllers is to strengthen as well as establish a transparent operation for procurement and establish quantitative as well as qualitative measures with regards to the selection of marketing vendor along with cost efficiency. In addition, it maintain, implement as well as the administrative system of global procurement, procedures and policies (Lee et al. 2014). The product categories of Samsung Electronics are a code, which represents type of the products and service. Selection of catalog items in the shopping cart and product categories are default automatically. The procure department of Samsung Electronics has an important role to make categories of products of the organization. There are different types of products and services purchased by the organization like raw materials, semi-furnished products as well as elements and finished products (Roh, Hong & Min, 2014). In addition, maintenance, repair as well as operating items, services, capital equipment along with third-party buying and transportation are included under the product categories of procure department. In order to supply raw materials of products like Galaxy line phones, it is required to identify the sources like plastic, glass, epoxy as well as synthetic rubber. There are several things that can dig out for the ground. The plastic as raw materials of the phones are made from the small amounts of natural gas. It is important to organize the elements that are scarce as well as get few places. Samsung Electronics has a great importance on getting the procurement of minerals that can play as the part of protecting the person. In addition, the customers serve the environments that are required to achieve by the organization. Reorganization and collaboration with international organizations assist the organization to be responsible for supplementing global efforts. Samsung Electronics make their process of mining minerals from the conflict zones in Africa. Profits from mining the operations in the regions are sources of the organization.

According to Kraljic's Matrix, it is required to make purchase clarification of the commodities, products as well as services that makes the risk for supply as well as profit of impact. Supply risk is generally high for the raw materials of Galaxy line of phones. Impact of profit is generally high that makes significant value for the organization.

Figure 1: Kraljic Portfolio Purchasing Model

(Source: Kong et al. 2016, p.-511)

Strategic items are getting impact that deserves attention to purchase the raw materials. On the other hand, leverage items have impact for getting high profit with low supply risks. The approaches of purchasing are considered by using power of purchasing and place high volume orders. Bottleneck items, if not used judiciously aggravates the complexities of Galaxy line of phones of which Samsung Electronics is an important part. This nullifies the prefix non in the quadrant of non-critical items. On the other hand, it reflects the capability of the personnel of Samsung Eletronics in terms of achieving efficiency in the business activities.

Along with launching of new products, Samsung Electronics consolidated the system of distribution. The company has a number of distribution offices at state level along with direct dealer interface (Kong et al. 2016). It assists the organization to get quick feedbacks from the dealers as well as enabled for launching the products as per requirements of the customers. The supply chain of the company helps to deliver the products faster. It results lower inventories as well as elimination of wastes and minimization of costs. In order to minimize the overruns, the organization delivers products directly from factories to regional dispatch centers. Chudgar & Creed (2014) argued that Samsung Electronics face several issues to meet the target customers. Logistic system of the company has number of issues like increasing cost in labor and fuel for which the company faces some challenges in its supply chain.

 


Target segmentation is an important task in order to achieve large scale ustomer satisfaction. Within this, market research of the sales operation makes the personnel aware of the buyers, suppliers and ustomers in the market. This research enables the personnel of Samsung electronics to estimate the demand of the products and services. As a sequential step, this estimation is assistance in terms of maintaining the equilibrium between the supply and demand.

Viewing it from other perspective, market research makes the personnel of Samsung electronics aware of the challenges that might hamper their growth process (Ummenhofer et al. 2016). Creation and development of plans broadens the perspectives of the personnel in terms of selecting the most prospective supplier. Exposure of conscious approach in this direction averts the situation of unwanted buyers and suppliers, which might stall the expansion process for the company.

Findings of operations analysis

Tracking of the customers’ demand is one of the most important approaches considered in Samsung Electronics. The organization took a decision to reduce the operational costs that enables the organization to keep low prices for specific products as well as extract the higher amount of profit margin from premium products (Ummenhofer et al. 2016). The company tries to be transparent in functioning and has a fixed marketing operating price for the products that are sold to the distributors as well as customers at fixed market price (Samsung Australia, 2017). In addition, Samsung Electronics concentrates on the competitors in order to penetrate rural as well as semi-urban mass markets. However, the organization insists to be high end technology player that helps the organization to attract more number of new customers. Forecasting the demands for the new products of Samsung Electronics has high end smart phones as a vital cause of declining profit of operation. Samsung Electronics has launched Galaxy S6 as well as curved screen variant and Galaxy S6 Edge. Expected distribution of the sales was 80 % straight variant and there is 20 % for curved Galaxy S6 devices. Hence, it is important to fulfill demands of the customers.

Chen and Ann (2016) stated that as a part of advertising strategy, the organization is engaged with aggressive as well as marketing strategy in order to develop attitudes that create awareness as well as transmit the information in order to obtain response from target market. Samsung Electronics emphasizes on promotional schemes in order to increase overall sales of the organization (Jung, 2014). Along with advertising strategy and promotional schemes, Samsung Electronics sponsors various events like Olympic.

Forecasting demands for the products of Samsung Electronics is conducted through the analysis in order to determine quantities, which need to be manufactured by the organization (Van Tran, Whitney & Ozawa, 2016). The company forecasts demand since basic operation process and assists the organization. Samsung Electronics uses tentative approaches in order to forecast for receiving some estimations of possible demand rate for the product (Samsung Australia, 2017). Customer survey is used by the organization. The organization displays as well as explains new products and potential clientele that are questioned with the use of Samsung products. Quality management and improvement system of Samsung Electronics ensures quality products and services through executing excellence in manufacture and after sales services.

 

Findings of information analysis

There are general issues that are known as bullwhip effect (Fernandez & Pallis, 2014). Bullwhip effect of Samsung Electronics can be described as occurrence that is detected by supply chain management system. In addition, irregular orders in lower part of supply chain need to develop things to be higher distinctive and higher value. In this perspective, variance can make interruption of smoothness in the supply chain. It interrupts the process and develops supply chain process resulting in the exaggerated fluctuations.

The complexity of supply chain as well as unpredictability of demands implements advanced IT management tools in order to deliver quality products to the customers of Samsung Electronics. One of the methods used by Samsung Electronics is implementation of Enterprise Resource planning that can help to achieve total visibility. It needs the utilization of additional tools and installation of modern technology in distinctive combinations that enhances visibility (Dhanasarnsombat et al. 2017). In Samsung Electronics, Radio Frequency Identification is used in order to extract data from tag attached to the items needed automatic identification as well as tracking.

Along with these, shipping status tools to get alerts and update, order processing tools, lean inventory tools and warehouse management are used in order to smooth the process of supply chain management system in the organization (Samsung Australia, 2017). In collaborative approaches, Samsung Electronics follows mutual development with the business partner, which is considered as one of the key elements to elevating the organization into top-notch of global corporation. In addition, upgrade manufacturing and acquire technology as well as foster human resources. Improvement in quality as well as productivity develop IT infrastructure of the organization that makes collaborative approaches. Integrating human resource team with the technology team makes a collaborative approach in the organization.

Utilizing checklists, templates for evaluating the exposed performance proves beneficial for the company. The segmented division of the templates would enhance the understanding of the personnel in terms of their progress within the competitive ambience of the market. Personal visits by the managers would act as a living example for gaining an insight into the progress of the company. This action would establish relevancy with the identified and specified requirements of the company.

Findings of integration analysis

Value Stream Mapping is a tool that is used in order to enhance performance of supply chain management system. It is crucial for the organization to use extensive data that can simplify the process of analysis through using the actual planning. Selecting products is one of the primary stages achieved by the organization. After that, it is required to identify the channel of distribution and map the physical location. In the next stage, it is required to detect flow of the information that covers the status of the order and product testing along with ordering information. 

Park, Hong & Li (2016) mentioned that the organization implements several programs in order to support suggestions of the staffs. It results offering of varieties services to the staffs. In addition, adoption of flexible time program in the system of the organization. Creativity of the staffs is helpful in order to develop new and unique products of the organization. In addition, it is required to develop the programs that can make proper degrees pf the organization and test the program in order to shift the management based tools for culture to the creativity of determination to shift from time management.

The company always tries to make some differences in their products and services through implementing the steps in the organization. Training program to the staffs of Samsung Electronics enhance its products through proper planning and implementing the projects. Samsung Electronics maintain the quality programs in the plans of delivering products in the market (Monden, 2015). Along with these, the organization needs to make some practices in the implementation of the products. Rapid change of technology as well as market conditions pursuit the things that can be useful for bringing some changes in the organization.

Taking into consideration the 9 steps of framework for design and assessment helps the company to assess the effectiveness and feasibility of the exposed performance. At the initial stagem identification of the requirements improves the focus of the company. Apart from this, creation and development of an effective team helps the company to achieve the targets. Within this, provision of adequate time in researching about the topic of project is a gradual progression towards the achievement of positive outcomes (Park et al. 2015). Along with the 9 steps in the framework, adjusting with the circumstances enhances the reputational status of the company, Samsung electronics. This projects an alignment with the current trends of the market.  

Findings of sustainability analysis

 Samsung has long-standing commitment in addressing the environmental challenges of the organization through development of cutting-edge products, which improves the method for making interaction (Park et al. 2015). Environmental performance is the key operational pillar of the process of product development. Energy Star program helps to develop technologies for fulfilling demands of the customers.

Emerging successful in this preservation highlights the breakage of the ordinary shackles by the company towards innovation. This innovation contradicts the usual functionality of chains. Effective utilization of the devices helps the personnel to bring modern touch into the lives of the customers. This touch simultaneously brings technological advancement for the company. Moreover, this technological advancement is the cornerstone in terms of achieving efficiency in the business activities. Market research helps the personnel to become aware of the popular devices in the market (Cho et al. 2016). Selection of the most appropriate device helps the personnel to attain this efficiency, which links with innovation and influences the purchasing power of the customers. Application of tactics to lure the customers adds value to the roles and responsibilities of the personnel.

Boycotting the utilization of carbon footprint in the production of the mobile phones reduces the smoke emission. This helps in the mitigation of pollution, which helps the company to achieve sustainable growth.

 

Procure and supply chain analysis of Samsung Electronics

Supply and demand are the two most important aspects, which bring financial stability for companies and organizations including Samsung Electronics. Maintenance of equilibrium between supply and demand helps the company to achieve customer satisfaction. The true functionality of chain contradicts the propositions of the value chain analysis. As a matter of specification, beautification of the internal environment acts as an agent in upgrading the infrastructure of Samsung Electronics. Viewing it from other perspective, presence of adequate stock of resources forms cornerstone in maintaining the balance between supply and demand. As per the propositions of value chain analysis, inbound and outbound logistics define the external and internal environment of Samsung Electronics. Countering this, beautification of the internal environment enables the company to penetrate into the external environment. Capability of the personnel to amend the internal environment results in the effective and judicious utilization of the stock of human resources. This utilization is the keystone towards coping up with the supply and demand.

Delving deep into the aspects of supply and demand, increasing in demand of products and services compels the personnel of Samsung electronics to manufacture quality products. Adoption of social media for this purpose is assistance for the personnel in terms of increasing the trafficking of the audience towards the brand image. Emerging successful in luring large scale customers enhances the brand awareness, which spreads the reputation of the company in a diversified manner (Yu, Tong & McFarthing, 2015). Maintenance of consistency in the execution of evaluation can be correlated with the procurement of the value chain analysis. This evaluation is the key towards bringing improvements in the products and services. Dedication and commitment towards the attainment of customer loyalty adds to the roles and responsibilities of the personnel in terms of preserving the organizational culture and value. Attempts undertaken to preserve the organizational value help in procurement of the products and service.

Providing training to the employees on effective utilization of the devices would upgrade their skills on technology. This would in turn support in the successful completion of the tasks. Taking post training tests would help the managers to ensure the capability of the employees in terms of making practical application of the learnt skills in the workplace operations. Moreover, it would generate an urge to expose better performance for taking the company into new heights of success (Lim et al. 2016). Exposure of collaborative output is of prime importance in terms of achieving success, such as foreign market penetration. This possesses flexibility to enhance the status of the company within the competitive ambience of the market. However, adherence to the standards and norms of the competitive policies is assistance in terms of indulging into fair competition with the contemporary brands. This compliance preserves the equilibrium between supply and demand.

Effective adherence to the propositions of dynamic Alignment model helps in the maintaining the balance between the supply and demand. The word dynamic bears correlation with the dynamics of supply and demand that takes place in the company. The attempts undertaken by the personnel to maintain the balance between supply and demand links to the parameters covered in this model.

 

Improvement programs for Samsung Electronics

It is important to make improvement program for Samsung Electronics that encourages several suggestions for work in improvement of process. Samsung has achieved accolades and glory by serving innovative quality products to the customers. However, a lot more has to be achieved for reaching to the peak of success. Adoption of means, such as, survey, feedback and customer portals would make the management of the company aware of the customer approaches towards the levied products and services. Taking into consideration the viewpoints of the customers would bring noticeable improvements in the services of Samsung Electronics (Lee & Jung, 2016). Along with this, evaluation of the offered services would help the management authorities to ensure the effectiveness of the proposed changes in terms of the business requirements. This step would systematize the tasks and add efficiency. Conducting market research would make Samsung electronics aware of the products and services in demand in the market. Taking into consideration, the viewpoints of the stakeholders and shareholders would help the managers of the company to select innovative design electronic devices for the customers. Evaluation would help the management to ensure the effectiveness and feasibility of the selected device in terms of achieving customer satisfaction and expanding the scope and arena (Cho et al. 2016). Maintenance of consistency in the execution of evaluation would upgrade the performance of the company within the competitive ambience of the market. Exposure of conscious attitude towards the events of the contemporary brands would place the company, Samsung Electronics in equal alignment with the contemporary brands. This placement would reflect the true essence of competition between brands. 

In view of the highlighted points, it can be suggested that the company has progressed on the path of success to a great extent. Achievement of high sales growth rate is an evidence for this statement. Negligence towards the carbon footprints has enhanced the csr of the company, which indicates its sustainable growth. Consistent evaluation possesses flexibility to maintain the firmness in the market position of the company, Samsung Electronics.

Conclusion

This assignment emerges successful in providing an insight into supply chain management. The example of Samsung electronics provides clarity in understanding the dynamics of the supply and demand. Analysis of the anticipated findings reflects the current strategic position of Samsung electronics. Herein, lays the appropriateness of the value chain analysis, which helps the personnel to effectively and judiciously manage the human resources. This management is assistance in terms of uplifting the infrastructure of the company. Execution of market research and evaluation possesses flexibility in terms of improving the performance of the company. Evaluation is the means, which explains the market size, scope, arena of the company and paves the way of foreign market penetration.

 

References

Chen, C. M., & Ann, B. Y. (2016). Efficiencies vs. importance-performance analysis for the leading smartphone brands of Apple, Samsung and HTC. Total Quality Management & Business Excellence, 27(3-4), 227-249.

Cho, I. J., Kim, Y. J., & Kwak, C. (2016). Application of SERVQUAL and fuzzy quality function deployment to service improvement in service centres of electronics companies. Total Quality Management & Business Excellence, 27(3-4), 368-381.

Chudgar, A., & Creed, B. (2014). How does demand for private schooling vary across locations with different private school supply? Analysis of data from Rural India. Occasional paper, (222).

Dhanasarnsombat, D., Busse, D. K., Brinck, T., Adhikari, S., & Kuncl, P. R. (2017). U.S. Patent No. 9,536,568. Washington, DC: U.S. Patent and Trademark Office.

Fernandez, F., & Pallis, G. C. (2014). Opportunities and challenges of the Internet of Things for healthcare: Systems engineering perspective. In Wireless Mobile Communication and Healthcare (Mobihealth), 2014 EAI 4th International Conference on (pp. 263-266). IEEE.

Jung, S. C. (2014). The analysis of strategic management of samsung electronics company through the generic value chain model. International Journal of Software Engineering and Its Applications, 8(12), 133-142.

Kong, W., Huang, J., Qu, R., Kang, M., & Yang, J. (2016). Nonsinusoidal power supply analysis for concentrated-full-pitch-winding multiphase induction motor. IEEE Transactions on Industrial Electronics, 63(1), 574-582.

Lee, S. Y., Klassen, R. D., Furlan, A., & Vinelli, A. (2014). The green bullwhip effect: Transferring environmental requirements along a supply chain. International Journal of Production Economics, 156, 39-51.

Lee, S., & Jung, H. (2016). The effects of corporate social responsibility on profitability: The moderating roles of differentiation and outside investment. Management Decision, 54(6), 1383-1406.

Liang, G. (2015). The “Fox–Apple” Partnership in the Global Value Chain: How Did Foreign Direct Investment and Contract Manufacturing Reshape the Landscape of the Electronics Industry?. VALUE ADDED IN TRADE, 141.

Lim, C. G., Suh, Y. J., Choi, S. H., Bae, B. S., Cho, S. Y., Kim, D. W., ... & Jung, K. H. (2016). U.S. Patent No. 9,357,502. Washington, DC: U.S. Patent and Trademark Office.

Monden, Y. (2015). Lean Management of Global Supply Chain: Dynamic Combination Model of Market, Product Life-Cycle, Product Design, and Supply Chain. Lean Management of Global Supply Chain, 12(1), 1-312.

Park, Y., Hong, P., & Li, S. (2016). Free trade agreements and maritime supply chain costs: Competitiveness of Korean firms. Maritime Economics & Logistics, 18(1), 3-18.

Park, W. Y., Phadke, A., Shah, N., & Letschert, V. (2013). Efficiency improvement opportunities in TVs: Implications for market transformation programs. Energy Policy, 59, 361-372.

Roh, J., Hong, P., & Min, H. (2014). Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms. International Journal of Production Economics, 147, 198-210.

Samsung Australia. (2017). Samsung au. Retrieved 11 March 2017, from https://www.samsung.com/au/

Ummenhofer, C. D., Olsen, J., Page, J., & Roediger, T. (2016). Self-Sufficiency in an MCHP System Based on Local Demand and Supply Analysis. In ASME 2016 10th International Conference on Energy Sustainability collocated with the ASME 2016 Power Conference and the ASME 2016 14th International Conference on Fuel Cell Science, Engineering and Technology (pp. V001T03A003-V001T03A003). American Society of Mechanical Engineers.

Van Tran, D., Whitney, R., & Ozawa, T. (2016). U.S. Patent No. 9,237,295. Washington, DC: U.S. Patent and Trademark Office.

Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A balanced approach. Cengage Learning.

Yu, C., Tong, F., & McFarthing, P. C. (2015). U.S. Patent No. 9,160,599. Washington, DC: U.S. Patent and Trademark Office.

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