16-08-2012, 10:27 AM
SUPPLY CHAIN MANAGEMENT OF LG
1SUPPLY CHAIN.ppt (Size: 893.5 KB / Downloads: 62)
LG Electronics India Pvt. Ltd.
A wholly owned subsidiary of LG Electronics, South Korea
Established in January, 1997
State-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998
Vision was to become a 'Health Partner' for its consumers
The CTV range offered by LG has 'Golden Eye' technology
Entire range of LG air-conditioners have 'Health Air System'
Microwave ovens have the 'Health Wave System'
Refrigerators have the 'PN System’
Washing machines have 'Fabricare System'
LG CHANNEL STRUCTURE
Multi-tier structure
Have LG Shoppes, cyber shoppes, SSDs, X-Canvas Studios, direct dealers
Also have a network of distributors and sub dealers
About 10,000 stock and selling points spread across the country
Different distribution strategies for its different product groups
GSM mobile phones do not make use of CFA’s
CTV’s, microwaves and other like items require a CFA
Primary manufacturing facility at Greater NOIDA
Two other manufacturing facilities have come up in the region of Pune and Dehradun, keeping in mind the benefits of Excise free zones (EFZ’s)
Procurement of supplies and materials for production is done by the purchase department
LG CHANNEL PARTNERS
CFA’s.
They are spread across 20 states in India.
The company dispatches the goods to C/F on consignment basis.
At the same time, these C/F agents all work on contract basis.
They get paid as per the amount they stock.
DISTRIBUTORS
The company appoints distributor for selective cities where the markets are small but require more focus and attention. Distributors are required to conduct sales and marketing on behalf of the company in these markets serving to all the required company stores.
The company sends goods to the distributor on out right sale basis.
It is the duty of the distributor to send his people into the field to book the orders and also execute them through their own delivery vehicles.
The distributor has to maintain his own sales, delivery and accounts people for smooth working of his unit and is served by the nearest C/F for all his requirements.
The distributor is given a margin of 10-20%