Samsung Electro-Mechanics Co. Ltd. (SEMCO) has chosen UPS Logistics Group to reengineer and manage its global supply chain. The three-phase project will redesign SEMCO's logistics, transportation, customs brokerage and inventory management for both raw materials and finished goods covering North America, Asia, Europe and Latin America.
"SEMCO is a very progressive company that realizes the competitive advantages that UPS's worldwide integrated services can bring," said UPS chairman & CEO Jim Kelly. "This contract illustrates the power of UPS's supply chain management services and how we can help multinational companies gain superior supply chain performance."
At least four different UPS units will be used for the project, including UPS's small package express operation, UPS Air Group, the recently acquired Fritz Companies and UPS Logistics. With all phases in operation, UPS Logistics could be managing up to a half billion dollars in total logistics expenditures over the five years, according to SEMCO.
The planned first phase of the project is to design and implement a global information technology infrastructure that will add supply chain visibility to the flow of SEMCO's raw materials, sub-components and finished goods as they move from suppliers through manufacturing and on to customers. The phase also will include the reengineering and management of SEMCO's North American distribution network that connects manufacturing centers in Asia and Latin America with customers in North America. Phases II and III will add Europe, Asia and Latin America over the next four years.
SEMCO's parent, Samsung Group, is the largest company in Korea with net sales of $119.5 billion in 2000.