This article discusses how Samsung Company has systematically developed a unique six-sigma model for running its supply chain management. The author traces the evolution and growth Samsung from the 1930s to present. According to the author, Samsung’s investment in the six-sigma model of supply chain management has led to its exponential growth in the last few years. In the second part of this article, the author provides a detailed discussion of how supply chain management operates using the six-sigma model.
The third section provides a summary of how the six-sigma technique has transformed the entire operations of Samsung Company. The last section draws conclusions on the application of six-sigma methodology to improve supply chain management activities.
The author of this article aimed at demonstrating how Samsung has used the six-sigma model to modernize its supply chain management. Six-sigma technique applies a systematic procedure of defining, gauging, scrutinizing, developing, and controlling supply chain management. Six-sigma has boosted Samsung’s integrated system of identifying and monitoring all its ventures beyond their achievement. This ensures sustainability of the improvements made in the supply chain management. Samsung has significantly improved the capacity of its workers to implement supply chain management initiatives using six-sigma approach.
For example, “its colored belt system has clearly delineated levels of competency; thus, it has helped in managing people in a differentiated way from the human resource perspective” (AMR 2). The six-sigma model applied by Samsung was developed through extensive research on various supply chain management techniques. The second component of Samsung’s six-sigma model has a set of principles that guides its implementation.
In writing this article, the author used secondary sources such as books and journal articles that discuss supply chain management techniques. The author analyzed the growth trends of Samsung to determine the reasons for its successful growth in the last few years. In addition, the author has applied a case study methodology. In this case, the author has examined how the Samsung has improved its supply chain management using six-sigma approach (AMR 11).
The article reveals that six-sigma methodology has the capacity to improve supply chain management services. Another finding is that Samsung Company has increased its sales volume, decreased its inventory and distribution costs by adopting the six-sigma technique in its supply chain management. Moreover, “the article reveals that six-sigma and supply chain management are among those techniques that facilitate process and quality improvement, and synchronization of a company’s value chain, from inbound logistics to sales and customer services” (AMR 10).
This article has shown the journey of Samsung to success and has emphasized the importance of an efficient supply management system. The author has clearly demonstrated that Samsung’s growth in the recent past is because of its unique adoption of a superior supply chain system that integrates both supply chain management and six-sigma technique (Kiling 7). This article also reveals that contemporary innovations such as six-sigma technique are indispensable tools for streamlining the management and operations of a company. The success of Samsung has motivated the inventors of six-sigma to mentor several specialists on how this technique works.
With the development and propagation of the six-sigma technique, many companies have a great potential to improve their supply chain management. Consequently, sophisticated supply chain management techniques should be developed to improve the operations of various companies.
AMR. The AMR Research supply chain top 25 for 2005. 2005. Web.
Kiling, Kelly Tatum. SCM Six Sigma in Samsung. 2013. Web.