SAMSUNG ELECTRO-MECHANICS CHOOSES UPS LOGISTICS GROUP

SAMSUNG ELECTRO-MECHANICS CHOOSES UPS LOGISTICS GROUP

   Samsung Electro-Mechanics, a division of Samsung, 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 raw materials and finished goods covering North America, Asia, Europe and Latin America. UPS Logistics Group estimates that the five-year deal could involve up to a half-billion dollars in total logistics expenditures.

   At least four different UPS units are expected to be involved in the project, including UPS's small-package express operation, UPS Air Group, the recently acquired Fritz Cos., and UPS Logistics Group.

   The first phase will involve designing and implementing 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. UPS Logistics Group will also reengineer and manage SEMCO's North American distribution network that connects manufacturing centers in Asia and Latin America with customers in North America.

   Additional phases will add Europe, Asia and Latin America over the next four years.

Korea-based Samsung Electro-Mechanics Co. manufactures, markets and distributes more than 50 product types used in a variety of telecommunications and audio-video devices, computers and computer peripherals. SEMCO sells 80 percent of its products outside Korea. SEMCO's parent, Samsung Group, is the largest company in Korea with net sales of $119.5 billion in 2000.