1. SUPPLY CHAIN MANAGEMENT OF LG
By,
Somanna.B.A

2. LG Electronics India Pvt. Ltd.
A wholly owned subsidiary of LG Electronics, South Korea
Established in January, 1997
State-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998

3. LG Electronics India Pvt. Ltd.
Vision was to become a 'Health Partner' for its consumers
The CTV range offered by LG has 'Golden Eye' technology
Entire range of LG air-conditioners have 'Health Air System'
Microwave ovens have the 'Health Wave System'
Refrigerators have the 'PN System’
Washing machines have 'Fabricare System'

4. LG MARKET SHARE

5. LG MARKET SHARE

6. LG MARKET SHARE

7. LG MARKET SHARE

8. LG CHANNEL STRUCTURE Multi-tier structure
Have LG Shoppes, cyber shoppes, SSDs, X-Canvas Studios, direct dealers
Also have a network of distributors and sub dealers
About 10,000 stock and selling points spread across the country
Different distribution strategies for its different product groups
GSM mobile phones do not make use of CFA’s
CTV’s, microwaves and other like items require a CFA

9. LG CHANNEL STRUCTURE Primary manufacturing facility at Greater NOIDA
Two other manufacturing facilities have come up in the region of Pune and Dehradun, keeping in mind the benefits of Excise free zones (EFZ’s)
Procurement of supplies and materials for production is done by the purchase department

10. LG CHANNEL STRUCTURE
The annual forecasts are further disaggregated into forecasts that are carried out twice a month(15 days basis), on the basis of which inventories are maintained and further production levels are maintained
Most raw materials are bought from suppliers within India
At the retail level, LG uses a combination of exclusive LG showrooms as well as Multi-brand outlets (MBO’s)

11. LG CHANNEL STRUCTURE
Consumers for LG include individual consumers as well as institutional clients
LG also indulges in e-retailing as an alternative channel through its website
LG also has a separate channel for services and spares

12. LG DISTRIBUTION NETWORK
SUPPLIERS
FACTORY (OEM)
WAREHOUSE
CFA
DISTRIBUTOR
LG SHOPPE
DEALER
CONSUMERS
INSTITUTIONS

13. LOGISTICS FLOW

14. LG CHANNEL PARTNERS CFA’s. They are spread across 20 states in India.
The company dispatches the goods to C/F on consignment basis.
At the same time, these C/F agents all work on contract basis.
They get paid as per the amount they stock.

15. DISTRIBUTORS
The company appoints distributor for selective cities where the markets are small but require more focus and attention. Distributors are required to conduct sales and marketing on behalf of the company in these markets serving to all the required company stores.
The company sends goods to the distributor on out right sale basis.
It is the duty of the distributor to send his people into the field to book the orders and also execute them through their own delivery vehicles.
The distributor has to maintain his own sales, delivery and accounts people for smooth working of his unit and is served by the nearest C/F for all his requirements.
The distributor is given a margin of 10-20%

16. THANK YOU