LG Supply chain management in India: Implement new IT systems as well as changing its transportations function through adoption of IT.

adoption of IT. Concurrently LGEIL (LG Electronics India Pvt Ltd) is trac ing demand! supply! inventory! manufacturing! raw materials! logistics and distri"ution. Integrated with the #racle E$P systems of LG worldwide. %etter route optimi&ation. Improved loading and tendering capa"ilities. Goods move out of the 'istri"ution Center in less than () days. LGEIL focus on reducing 'I# ('ays of Inventory #utstanding) "ecause of shortened product life cycles. LGEIL follows the hu"*and*spo e model. +inal goods are moved from its various factories to the central 'C at ,oida and $an-angaon! from where it moves to its .( warehouses. The first sea movement was from /andla port to /ochi! and then e0tended to Coim"atore and later on to Chennai. It also started sending out goods "y rail using the services of the private container train operators (PCT#s). LGEIL moves full rail rac to /ochi! /ol ata and Guwahati. $ail transport is fre1uently used from Pune to /ochi and Guwahati! ,oida to 2outh (Chennai! 3ydera"ad and %angalore). Currently! LGEIL channeli&es appro0imately 4!.)) vehicles every month from its various manufacturing locations to "ranch 'Cs. 5ppro0imately 67!))) vehicles are sent out from "ranch 'Cs every month! for secondary transportation! to various dealers and distri"utors all over India. 5PL Logistics handles all the warehouse function for LGEIL at Chennai li e In"ound Inventory 8anagement! #ut"ound such as handling shipments to dealers and modern trade and institution sales9 2torage! and Transportation 8anagement and Coordination including update of proof of delivery in LGE:s #racle system. Consumer dura"les are sensitive to damage so that LGEIL customi&ed truc s and trac ing that ascertain that goods move as per the client:s re1uirements. LGEIL have mange the separate department of customer support so that the customer return goods directly handle "y that department itself. 2upply chains are handling the goods which return from the dealers. Two other manufacturing facilities have come up in the region of Pune and 'ehradun! eeping in mind the "enefits of E0cise free &ones (E+;:s)

Supply chain work flow:

LG distribution network:

Logistic flow:

CORPORATE LOGISTICS

TEAM HEAD

DISTRIBUTION AND PLANNING (FGs)

OPERATIONS AND TRAFFIC TO DEAL $ITH TRUC%ERS & TRANSPORTERS

ZONAL HEADS FOR 2 ZONES (South & west No!th & e"st)

PRODUCT $ISE

BRANCH LOGISTICS INCHARGE

CFA#s & $AREHOUSES

Reverse logistic of LGEIL: The company accepts returns from their retailers as well as company owned stores.

The -o" of "ringing "ac the defects again rests with local distri"utor and C<+ that collects them from the shop. They are entered and ept separately at the warehouse and proper stoc is maintained and sent to warehouse. The damaged goods are dispatched to the warehouse periodically. The damaged goods received from the distri"utor are credited to his account and as such are only accepted after thorough e0amination "y the local sale e0ecutive.