SHIPPERS SPOTLIGHT Asia
“The exponential growth in demand and constantly
catering to newer and distant
locations buoyed us to improve our supply chain”
logistics and distribution, finding it hard to compute collective data that would allow the company to see its progress at a quick glance and in real-time across the growing reach of its global divisions. And this is no small problem for a
company of its size. As an example of scale, in 2010 LG Electronics took 140 million mobile phones to the global marketplace and it started building the foundations of an expansion process that will enable it “to become the global number two in 2012” for mobile phone sales, said Skott Ahn, CEO of the
growth in demand and constantly catering to newer and distant locations buoyed us to improve our supply chain,” he remarked. “But it was the implementation of GSCP (Global Supply Chain Planning) in 2008 that streamlined all our operations.” GSCP was established to integrate
control of the entire business process from receiving orders and production to sales and inventory, with an online link to LG companies around the world. This has enabled the company to close the gap between demand and supply,
Life’s Good
VLG Electronics is the world's second-largest manufacturer of television sets and third- largest producer of mobile phones. It is a flagship subsidiary company of LG Group, one of the world's largest electronics conglomerates.
VThe LG Group was created by the merger of two Korean companies: Lak-Hui (pronounced Lucky) Chemicals and GoldStar. The current ‘Life's Good’ slogan used by the company in its promotional marketing is a ‘backronym’ of the LG abbreviation for Lucky- GoldStar.
VIt was back in 2001 that the first steps were taken to outsource some of the logistics responsibilities of LG Corp, with LG Chemicals Overseas giving the job to Korean company Pantos Logistics – a Seoul-based business owned by the late Koo Ja-heon, a cousin of LG Group founder Koo In-hoe.
company’s mobile phone unit. Mobile phones are most commonly
shipped by air freight services as they are prone to constant change in prices, quick obsolescence and the need for on- demand supply, thus making sure that while inventory needs to be minimal goods must be available on the shelf when the dealer needs them.
Keeping costs low But at a time when many companies are dissatisfied with the high cost of their logistics operations, how does the company keep it low? A spokesman for LG Electronics India said the company had experimented with several production and distribution models over the last few years. “The exponential
thereby releasing millions of dollars of cash flow that is no longer tied up in inventory. With a focus on reducing its ‘days of
inventory outstanding’ balance because of shortened product life cycles: “That’s why our forecasting has to be incisive,” the LG spokesman said. Given that all global companies often face simple theft, misrepresentation of inventory, counterfeiting and piracy, it is vital that the right steps are taken. These avenues of concern have been restricted through the company’s Global Digital Logistics System (GDLS), which aids in better route optimisation as well as improved loading and tendering capabilities. The stress on accuracy and product integrity becomes even more pertinent
8 AIR LOGISTICS MANAGEMENT
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