The paper 'Supply Chain Management - LG Company " is a good example of a management case study. LG Company was originally established in the year 1958 as Goldstar, producing TVs, air conditioners, radios and refrigerators. LG was a merger of two Korean companies, this is; Goldstar and lucky, from which they derived the abbreviation LG (James and Roetteis 16). Before the name changed to LG, household items were sold under the name of Lucky, while electronics were sold under the name of Goldstar. LG has intensified its supply chain management in order to save on cost thus increase efficiency in its production line.
Supply chain management has been a boost to the company coordinating activities (Mentzer 243). Parties to a supply chain The major role of the supply chain is to satisfy customers' needs and wants according to their tastes, fashion and preferences. There are four main parties involved in a supply chain in all companies if not all. This includes; the producer or the manufacturer, wholesalers, retailers and finally the consumer. Each one of these parties plays a vital and distinct role from the other.
The LG producer’ s role is mainly to manufacture items such as phones, TVs radios and so on. They are solely responsible for ensuring that the goods have reached into the market. At this stage, the wholesaler will then be introduced. A wholesaler is a person who buys commodities in large quantities and enjoys benefits thereafter (Shah 268). The wholesaler will then pick the goods from the producer’ s warehouse and take them into the market. On the other hand, the retailer will break the bulk into smaller quantities for consumers to be able to buy with regard to their real income.
This means that the LG items will be sold as a unit of production but not as wholesale production. The LG retailer is also responsible for ensuring that the goods are all over the country. The consumer is the final user of the LG items. The main aim of this supply chain is to enhance consumer utility. Utility refers to the satisfaction derived from using a commodity (Bidgoli 28).
Bidgoli, Hossein. The Handbook of Technology Management: Supply Chain Management, Marketing and Advertising, and Global Management. New York : John Wiley and Sons, 2010.
Birgit, Dam ,Jespersen and Skjott-Larsen Tage. Supply chain management: in theory and practice. New York: Copenhagen Business School Press DK, 2005.
James, Measell and W. C. Roetteis. The L.G. Wright Glass Company. UK: Glass Press, 1997.
Mentzer, John T. Supply chain management. UK: SAGE, 2001.
Shah, Janat. Supply Chain Management: Text and Cases. India: Pearson Education India, 2009.