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LG Supply chain management in India:

Implement new IT systems as well as changing its transportations function through adoption of IT.

Concurrently LGEIL (LG Electronics India Pvt Ltd) is tracking demand, supply, inventory, manufacturing, raw materials, logistics and distribution.

Integrated with the Oracle ERP systems of LG worldwide.

Better route optimization.

Improved loading and tendering capabilities.

Goods move out of the Distribution Center in less than 30 days.

LGEIL focus on reducing DIO (Days of Inventory Outstanding) because of shortened product life cycles.

LGEIL follows the hub-and-spoke model.

Final goods are moved from its various factories to the central DC at Noida and Ranjangaon, from where it moves to its 53 warehouses.

The first sea movement was from Kandla port to Kochi, and then extended to Coimbatore and later on to Chennai.

It also started sending out goods by rail using the services of the private container train operators (PCTOs).

LGEIL moves full rail rack to Kochi, Kolkata and Guwahati.

Rail transport is frequently used from Pune to Kochi and Guwahati, Noida to South (Chennai, Hyderabad and Bangalore).

Currently, LGEIL channelizes approximately 7,500 vehicles every month from its various manufacturing locations to branch DCs.

Approximately 24,000 vehicles are sent out from branch DCs every month, for secondary transportation, to various dealers and distributors all over India.

APL Logistics handles all the warehouse function for LGEIL at Chennai like Inbound Inventory Management, Outbound such as handling shipments to dealers and modern trade and institution sales; Storage, and Transportation Management and Coordination including update of proof of delivery in LGE’s Oracle system.

Consumer durables are sensitive to damage so that LGEIL customized trucks and tracking that ascertain that goods move as per the client’s requirements.

LGEIL have mange the separate department of customer support so that the customer return goods directly handle by that department itself.

Supply chains are handling the goods which return from the dealers.

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)

Supply chain work flow:

Supply chain work flow: LG distribution network:

LG distribution network:

Logistic flow: CORPORATE LOGISTICS DISTRIBUTION AND PLANNING (FGs) OPERATIONS TEAM HEAD AND TRAFFIC ZONAL HEADS FOR

Logistic flow:

CORPORATE

LOGISTICS

DISTRIBUTION AND PLANNING (FGs) OPERATIONS TEAM HEAD AND TRAFFIC
DISTRIBUTION
AND
PLANNING (FGs)
OPERATIONS
TEAM HEAD
AND
TRAFFIC

ZONAL HEADS FOR 2 ZONES (South & west, North & east)

Logistic flow: CORPORATE LOGISTICS DISTRIBUTION AND PLANNING (FGs) OPERATIONS TEAM HEAD AND TRAFFIC ZONAL HEADS FOR

PRODUCT WISE

BRANCH LOGISTICS INCHARGE

Logistic flow: CORPORATE LOGISTICS DISTRIBUTION AND PLANNING (FGs) OPERATIONS TEAM HEAD AND TRAFFIC ZONAL HEADS FOR

CFA’s & WAREHOUSES

TO DEAL WITH TRUCKERS & TRANSPORTERS

Reverse logistic of LGEIL:

The company accepts returns from their retailers as well as company owned stores.

The job of bringing back the defects again rests with local distributor and C/F that collects them from the shop.

They are entered and kept separately at the warehouse and proper stock is maintained and sent to warehouse.

The damaged goods are dispatched to the warehouse periodically.

The damaged goods received from the distributor are credited to his account and as such are only accepted after thorough examination by the local sale executive.