QUESTION ONE

Read the following and then answer the questions that follow: [50]

Samsung Electronics Co., worlds largest smartphone maker by shipments, is not having a good day. Samsung has created one of the biggest global recalls in the world with 35 cases of exploded phones or phones catching fire thus far. Barely out of its launch on 19th August, 2.5 million units of the Galaxy Note 7 are to be returned to Samsung, a portion of which have not even reached carrier stores. Already set on the back foot by the successful Apple iPhone 7 launch, this recall would severely undermine Samsungs effort to push its phone up the value chain.

And thats not all. Other Samsung products such as the recently released Galaxy S7 edge and soon to be launched Galaxy Tab S3 are facing scrutiny as well. No longer will trendy or reliable be at the forefront of consumer minds but more likely exploding batteries and poor quality. The Federal Aviation Administration (FAA) is contemplating whether to ban Note 7 devices on planes days after the decision to prohibit usage in-flight. Will the Galaxy Note 8 be safe? What if I can no longer travel with my phone? are questions Samsung will find very hard to address. So far, those answers have not been very forthcoming.

Samsungs confused response has tarnished its reputation and credibility with not just consumers but business partners, regulators and many more stakeholders all over the world. According to the Wall Street Journal, there were multiple statements released with conflicting information leading to some customers being unable to exchange their phones.

Although an exchange programme was launched in all 10 countries where the devices were sold, it did little to appease angry and fearful customers. Verizon spokeswoman stated that even if replacement phones were to arrive from Samsung, there will not be sufficient phones to cover every Note 7 sold initially. The smartphone is a quintessential part of our modern life, and Samsungs offer of loaner phones just does not cut it.

Unlike Apple which has a large network of retail stores, Samsung relies mainly on carriers to sell its products. This has made the task of recalling 2.5 million phones very difficult as Samsung has little control over carriers.

Source: https://www.linkedin.com/pulse/inferno-samsung-lessons-reverse-logistics-grace-chua/

Questions:

1.1 In response to the case study, comment on the innovation strategy on Samsungs supply chain (10)

1.2 Comment on procurement-related activities that can contribute to Samsungs supply chain effectiveness (9)

1.3 Briefly discuss the impact of e-procurement on Samsung operations (5)

1.4.With the use of information from the case, briefly explain Samsung's closed loop supply chain.(10)

1.5 Discuss the importance of efficiency and effectiveness on Samsungs supply chain processes. (10)

1.6 Explain the significance of time management on Samsungs logistics and supply chain functions (6)