Samsung’s continuous competitive advantage required a flexible and future proof distribution network design.
Samsung, which realized €166 billion in sales in 2011, manufactures and sells products in different categories. One of these categories is Home Appliances, which consists of products like refrigerators, washing machines, microwaves, and vacuum cleaners. Samsung noticed that multiple developments made an impact on their physical distribution net¬work of Home Appliances. First of all, revenues grew rapidly and are expected to grow even further over the next years. As a result, volumes keep rising and geographical mar¬kets expand. Secondly, customer requirements change and demand more flexible logistics solutions and shorter lead times. The third impor¬tant aspect impacting Samsung’s distribution network, is their recent acquisition of an Eastern European production facility. This acquisition has an impact on their manufactur¬ing footprint, which has resulted in a shift from overseas production towards European products.