LG plans to fight piracy with SCM

Korea - LG Electronics' plans to increase its focus on supply chain management is expected help fight supply chain fraud, increase efficiencies and cut costs.

Companies are now more open to fraud in the supply chain as supply lines get more complex, according to a recent Global Fraud Report by New York-based risk consulting firm Kroll.

In an interview with the Korea Times, LG's chief supple chain officer Didier Chenneveau said one of the ways LG plans to combat fraud, as well as cut costs and inventory, is by intensifying its supply chain security efforts.

The world's No. 3 flat-screen TV and No. 4 handset maker said its recently launched global supply chain management system will allow LG to increase productivity by 10%, cut inventory levels and lead times and check the current status of product shipments in real-time.

"Supply chain management emerges as a top concern for our company as we need to intensify such a system to face off increasing financial damage triggered by poor supply chain management in our overseas markets," he said.

"We will maintain 'flexibility' and 'adaptability' to match supply and demand. LG is still processing to fill up definitions of the system."