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The Use of SCM Software at LGEIL Essay Example

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The Use of SCM Software at LGEIL

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The Use of SCM Software at LGEIL. It is evidently clear from the discussion that LG Electronics India was established in 1997 when it initially placed reliance on a manual system which was very time-consuming and tedious. The company experienced great difficulty in terms of product mix and the time to get the products to the market. In terms of product mix, the regional markets in India were very diverse and so one product may be popular in one region and not so popular in another region - a model that was in demand in the east of the country may not be popular in the north. In relation to the time factor, products had to be supplied to dealers at the right time and so LG had to facilitate a higher level of control of its network of suppliers.

In addition to that, the company was subject to targets in order to facilitate cost minimization to enable it to compete successfully in a market that was very sensitive to prices. Furthermore, if problems existed in relation to suppliers they had to be resolved by physically meeting face to face with suppliers. Therefore, in 2001 LGEIL went through a process of evaluating SCM Software including Oracle since its Enterprise Resource Planning (ERP) system utilizes this software. The company selected its own Customer Information Services (CIS) package. The reason for doing so was the sheer cost involved in customizing an off-the-shelf SCM package and the fact that the CIS package was already tailored to LG’s operations. LGEIL adopted SCM software in 2001. Since the company discovered that off-the-shelf systems could not work without making changes which would prove very challenging to the business the CIS package was brought on stream to help manage the supply chain. The CIS package was already tailored to its use and the two modules which were made to cater to the needs of suppliers (lgesource.com) and distributors (lgdealernet.com) were linked to the company’s ERP systems. The Use of SCM Software at LGEIL.

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