SAMSUNG UNIT PICKS UPS TO MANAGE SUPPLY CHAIN
Samsung Electro-Mechanics Co. (SEMCO), part of the Samsung Group Korean business conglomerate, has chosen UPS Logistics Group to reengineer and manage its global supply chain.
The three-phase project will involve at least four different UPS units: UPS's small package express operation, UPS Air Group, the recently acquired Fritz Companies, as well as UPS Logistics Group.
According to the agreement, UPS Logistics will redesign SEMCO's logistics, transportation, customs brokerage, and inventory management for both raw materials and finished goods in North America, Asia, Europe and Latin America.
The first phase will create a technology infrastructure to add visibility to the flow of SEMCO's raw materials from suppliers to manufacturers to customers.
SEMCO said that when all phases are completed in 2005, UPS Logistics Group could be managing up to half a billion dollars in total logistics expenditures over a five-year period.