Lg supply chain management ppt

Sony Corporation & LG Electronics

WorldShare’s Quest to Crown the Best for their Organization.

Veronica Hashemi June 8, 2020

WorldShare’s Organization

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WorldShare is a human-rights focused non-profit organization that is dedicated to helping shape the lives of others.

Currently, WorldShare’s organization supplies its employees with Sony branded products. They are discussing whether to switch to LG Electronics or keep the Sony brand.

Sony’s History

“Sony Corp. is engaged in the development, design, manufacture, and sale of electronic equipment, instruments, devices, game consoles, and software for consumers, professionals, and industrial markets” (CompaniesHistory).

Japanese company.

Founded in 1946 by Masaru Ibuka and Akio Morita.

Initially named, “Tokyo Tsushin Kogyo” as a small electronics company with only 8 employees.

Started off with about ¥190,000, which is roughly about $1,700 USD.

Headquartered in Minato City, Tokyo, Japan at Sony City.

Sony is popular worldwide and has been featured in a number of films, music, and other popular ventures.

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LG Electronics History

LG Electronics made its debut into Korea after the Korean War of 1950 - 1953 and wanted to help rebuild its nation with electronics and home appliances.

South Korean company.

Founded in 1958 by Koo In-hwoi.

Formerly known as GoldStar.

Produced many of South Korea’s TVs, radios, refrigerators, and other home appliances.

In February of 1995, GoldStar had merged with Lucky Chemical and LS Cable. The corporate name became Lucky-Goldstar, and then, today to LG Electronics.

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Compliances & Awards

The following is a list of compliances and awards for Sony & LG Electronics:

SONY CORPORATION

In 2019 and 2020, Sony was honored as one of the “World's Most Ethical Companies” by the Ethisphere Institute.

“Sony established its “Sony Group Code of Conduct” around the core principles of fairness, integrity, honesty, respect, and responsibility, and Sony Group as a whole endeavors to uphold these principles while creating innovation” (Sony Europe PR Team).

“Compliance Division in Sony Corporation” in 2001.

“Group Code of Conduct Establishment of the Compliance Hotline” and “Global Compliance Network” in 2003.

“Compliance Monitoring and Leadership Team” in 2008 and 2009.

LG ELECTRONICS

According to Forbes, LG Electronics has had its share of positive ethics practice awards. Some of these include:

Number 309 at “World's Best Employers 2019.”

Number 33 at “Top Regarded Companies 2019.”

Number 42 at “America's Best Midsize Employers 2019.”

Number 401 at “America's Best Employers 2016 (dropped off in 2017).”

Number 65 at “World's Most Powerful Brands 2012 (dropped off in 2013).”

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Supply Chain Issues & Solutions

Sony Corporation Supply Chain:

2001:

Sony’ supply chain reportedly lost an approximate amount of $160 million in shipment value to Europe.

This event was due to the shipments containing cadmium in excess of the European Commission’s legal threshold.

Sony has spent 18 months investigating 6,000 factories to identify the source of cause. Owing to the cost of the investigation, this response added to Sony’s already devastating loss.

“With this increased scrutiny, those companies that do not pursue SSCM (sustainable supply chain management) policies, enhance communication and proactively address transparency issues end up putting themselves at risk, just like Sony did in 2001” (Shoemaker).

After the 2001 financial loss, Sony had improved it's supply chain by adopting supplier selection criteria.

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2009:

Sony had a total loss of $1 billion due to various changing conditions, which also included re-structuring of its global supply chain.

Many employees have lost their jobs and this issue was a bit of a shock, since Sony prides itself on being a lifetime employer.

However, there were some positive aspects of this situation. Sony had learned what works and what doesn’t work in high-tech value chains.

“The Sony brand also has enormous power within the market, something which other companies have failed to learn in wholesale slashing of supply chain costs” (Ferrariadmin).

“The foundation of Sony’s efforts to build a responsible supply chain is the compliance of each and every director, executive, and employee with the Sony Group Code of Conduct and ethical business practices” (Sony).

Supply Chain Issues & Solutions

LG Electronics Supply Chain:

Some of the supply chain management problems LG Electronics faced were:

High costs

Lack of visibility

Improper performance in the transportation metrics.

Because of LG Electronics inability to manage its supply chain, it was affecting their supply chain process and they could not achieve their desired business targets and revenues.

LG Electronics then planned to implement JDA Software solutions. Since implementing the JDA Software solutions, LG Electronics’ business has massively improved.

The visibility, costs, and transportation improved and performance had risen up.

Also with the implementation of the JDA Software, LG Electronics’ business managers can see and make their decisions accordingly based on the data the software is able to provide for them.

In 2017, “LG Electronics was honored for innovation in supply chain sustainability by the Green Electronics Council. Presented at CES Asia 2017, the GEC Catalyst Awards seek to inspire innovation in the design, manufacture, and use of electronics to advance global sustainability” (Inbound Logistics).

One special feature that LG Electronics prides itself on is creating products that are greener. LG Electronics wants to be able to “reduce the environmental impact of their products throughout their lifecycle” (Inbound Logistics). These features are part of the overall plan to enhance customer satisfaction.

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COVID-19 Crisis

In December of 2019, an unknown respiratory virus, later named COVID-19 (Coronavirus Disease 2019) was detected in Wuhan, China. This event led to a worldwide pandemic that has affected millions of workers and businesses in countries all over the globe. Because of COVID-19, Sony and LG Electronics are now facing some issues in their electronics supply chain.

SONY CORPORATION

The Sony manufacturing plants in China and Malaysia have been closed down, which led to an unstable flow of resources from Asian suppliers. Although the plans have since reopened, it will take some time before the supply chain becomes consistent.

Sony currently has 36 manufacturing plans located all over the Asian continent. Many of the manufacturing plants are located in Japan, while others are located in China, Thailand, Malaysia, North Korea, South Korea, Indonesia, Singapore, India and Vietnam.

LG ELECTRONICS

LG has closed down its manufacturing plants as well, which caused “supply issues from its Chinese contract phone makers and store shutdowns in Europe and Latin America, further exasperating the business’ performance” (Mu-Hyun).

LG Electronics has over 142 global operations around the globe. 54% of businesses are located in South Korea while the other 46% are scattered around the globe.

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Labor Issues

In December of 2019, an unknown respiratory virus, later named COVID-19 (Coronavirus Disease 2019) was detected in Wuhan, China. This event led to a worldwide pandemic that has affected millions of workers and businesses in countries all over the globe. Because of COVID-19, Sony and LG Electronics are now facing some issues in their electronics supply chain.

SONY CORPORATION

Foxconn, a popular manufacturing plant that Sony hired to assemble the PlayStation 4, had reports of mistreating their workers.

Foxconn had allegedly violated company policy by forcing student interns working overtime and overnight shifts to graduate.

Foxconn has argued that the students were volunteers and that they can leave at any time. But, it seems that the students were forced to work, otherwise they would lose 6 course credits, making them ineligible to graduate.

While Sony usually has a good reputation on work ethics, sometimes the contract companies like Foxconn might violate policies.

Sony has since investigated this situation and stated that they expect all suppliers, including Foxconn, to fully comply with its supplier code of conduct.

“Such standards typically include minimum ages for employment, minimum wages, standards of occupational safety and health, and hours of work” (Powell).

LG ELECTRONICS

“The Brazilian electronics factories of Samsung, LG and Foxconn, corresponded to working conditions in their factories in low-cost countries.

There, trade unions are non-existent or severely hampered in their functioning, and authorities lack the capacity to properly implement labour laws” (Schipper).

In Brazil, the electronics factories, which also included LG Electronics, have violated company policies regarding excessive working hours, the regulation of breaks, and the inappropriate use of temporary labor.

The workers still continue to face harassment issues and living in fear of their jobs.

LG Electronics has not responded to this issue.

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Sony’s Community Involvement

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UNHCR:

Since 2007, Sony has been involved with UNHCR, UN Refugee Agency, a global organization dedicated to saving the lives of refugees, protecting their rights, and building a better life for those forced to flee from war and persecution from their countries.

In response to the COVID-19 pandemic, UNHCR was seeking relief to protect their vulnerable people. Sony has stepped up to support UNHCR with the COVID-19 relief.

“Through the US $100 million “Sony Global Relief Fund for COVID-19”, Sony will provide support in three areas: assistance for individuals and organizations engaged in frontline medical and first responder efforts such as UNHCR, support for children and educators who must now work remotely, and support for members of the creative community in the entertainment industry, which has been greatly impacted by the spread of the virus” (UNHCR).

Sony’s president, Kenichiro Yoshida, has stated that the Sony company is dedicated to overcome this situation by providing help to those on the front-lines and will do all they can as a global company to help its global citizens.

Save the Children:

Sony has also been a long time supporter since 2014 for the Save the Children organization, a humanitarian aid organization dedicated to helping children in terms of education, aid, and other conflicts in their lives.

Sony has also been involved with the support of various emergency responses around the world.

The employees of Sony have actively and still continue to participate in Save the Children’s annual volunteer opportunities to help sponsor the organization's mission.

LG Electronics Community Involvement

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Discovery Education’s “Discover Your Happy” Program :

In 2018, LG Electronics teamed up with Discovery Education for the “Discover Your Happy” program, a program that teaches the youth about science-based happiness.

“Discovery Education’s Discover Your Happy program is an extension of LG’s Life’s Good: Experience Happiness corporate social responsibility initiative” (Discovery Education).

The Discover Your Happy program covers skills to understand that “Life’s Good.”

These skills include maintaining a positive outlook, mindfulness, and gratitude.

LG does not participate in many community programs. They do have their own programs within the company for their employees.

Final Words

Based on the research regarding Sony and LG Electronics, it seems that the WorldShare company should stick with Sony products. Sony seems to have a better reputation than LG Electronics does. While LG Electronics does a great job with creating products that are environmentally friendly, there is simply not enough credible information that surpasses Sony. Sony has more third-party credible sources when it comes to the company than LG Electronics does and Sony has given more responses when issues come up. Sony also shows to be more involved in the community, especially the global community. LG Electronics does not have many sources when it comes to being involved with the community.

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Works Cited

Companies History. “Sony.” Companies History - The Biggest Companies in the World, 8 Feb. 2020, www.companieshistory.com/sony/.

Discovery Education. “Discovery Education Teams up With LG Electronics USA To Launch 'Discover Your Happy' Program That Combats Youth Stress With Science-Based Happiness Curriculum.” CSRWire.com The Corporate Social Responsibility Newswire, 15 Mar. 2018, www.csrwire.com/press_releases/40854-Discovery-Education-Teams-up-With-LG-Electronics-USA-To-Launch-Discover-Your-Happy-Program-That-Combats-Youth-Stress-With-Science-Based-Happiness-Curriculum.

FerrariAdmin. “Sony's Supply Chain Challenges.” The Ferrari Consulting and Research Group, 22 May 2009, theferrarigroup.com/sonys-supply-chain-challenges/.

Forbes. “LG Electronics.” Forbes, Forbes Magazine, www.forbes.com/companies/lg-electronics/#1f610fd02b68.

Inbound Logistics Staff. “LG Honored For Supply Chain Sustainability.” LG Honored For Supply Chain Sustainability - Inbound Logistics, www.inboundlogistics.com/cms/article/lg-honored-for-supply-chain-sustainability%20/.

Mu-Hyun, Cho. “LG Sees Q1 Profit Rise 21% but COVID-19 Concern Lingers.” ZDNet, ZDNet, 30 Apr. 2020, www.zdnet.com/article/lg-sees-q1-profit-rise-21-but-covid-19-concern-lingers/.

Schipper, Irene. “Labour Conditions at Foreign Electronics Manufacturing Companies in Brazil.” SOMO, 6 Feb. 2018, www.somo.nl/labour-conditions-foreign-electronics-manufacturing-companies-brazil/.

Shoemaker, Michael, and Mark Christensen. “How Sony Strengthened Its Supply Chain and Added Value.” SUPPLY CHAIN MINDED, 15 Apr. 2014, supplychainminded.com/how-sony-strengthened-its-supply-chain-and-added-value/.

Sony Europe PR Team. “Sony Honored as One of ‘World's Most Ethical Companies’ in 2020 for the 2nd Consecutive Year.” Mynewsdesk, 26 Feb. 2020, presscentre.sony.eu/pressreleases/sony-honored-as-one-of-worlds-most-ethical-companies-in-2020-for-the-2nd-consecutive-year-2976588.

Sony. “Ethics and Compliance.” SONY, www.sony.net/SonyInfo/csr_report/compliance/.

Sony. “Responsible Supply Chain.” SONY, www.sony.net/SonyInfo/csr_report/sourcing/.

Powell, Benjamin. "In Defense of Sweatshops." English 1+28 Reader, edited by the Santa Monica College English Department, Santa Monica College, 2018. pp. 149-153.

UNHCR. “Sony Provides the First Major Corporate Contribution to UNHCR's COVID-19 Appeal - UNHCR Hong Kong.” UNHCR, 20 May 2020, www.unhcr.org/hk/en/27009-sony-provides-the-first-major-corporate-contribution-to-unhcrs-covid-19-appeal.html.

Wilson, Georgia “ COVID-19: Sony Electronics’ supply chain faces instability.” Supply Chain Digital, 21 Mar 2020, https://www.supplychaindigital.com/technology/covid-19-sony-electronics-supply-chain-faces-instability.