Chemical Industries

Samsung Fine Chemicals

Business Environment

Established in 1964, Samsung Fine Chemicals Company started from a general chemical business and started with high value-added precision chemical products such as Mecellose (a property improver for cements) and Anycoat (a medicinal capsule and a coating agent). Since 2000, they have expanded their business domain to advanced electronic materials such as BT Powder, which is a raw material for MLCCs (Multi-Layer Ceramic Capacitors), and color print toner. They are also building a sustainable business foundation through our environmentally friendly renewable energy businesses, such as polymer silicon for solar cells and active material materials for secondary batteries. Aiming to be the best in the world in the continuous commercialization of cutting-edge businesses, they continue to grow as a company specializing in materials and chemistry.

Project Background & Goals

Samsung Fine Chemicals Company has been continuously expanding its business and investments since 2010 with the goal of becoming a top-class chemical materials company. To achieve this, the company has implemented a Process Innovation (PI) master plan to synchronize the demand and supply departments. The goal is to establish a "Weekly Supply Chain Management (SCM) System" for all products.

To accomplish this, Samsung Fine Chemicals Company has launched an SCM system implementation project, which includes several key steps:

  1. Formulating an optimal demand forecast and supply plan that takes into account the business characteristics of each division.
  2. Building a system that can be executed on a weekly basis by linking SCM, Enterprise Resource Planning (ERP), and Manufacturing Execution System (MES).
  3. Developing a business scenario-based SCM User Interface (UI) to enable decision-making on a weekly basis.

This project aimed to cover all SCM areas including Demand Planning, Master Planning, Factory Planning, and Sales and Operations Planning (S&OP) and utilized Zionex solutions to achieve these goals. The company has been committed to optimize their processes and improve their performance to reach the level of being a top-class chemical materials company.

Return on Investments

In the area of demand forecasting, Samsung Fine Chemicals Company has increased visibility of distribution inventory and sales performance, and successfully reduced the number of days of distribution inventory. By synchronizing order date management and process management with customers, the company has also reduced management risk in ordering. This has led to an improvement in the on-time delivery rate and an increase in customer satisfaction.

The company has also successfully synchronized demand and supply by implementing a weekly supply plan, which has prevented production without demand and resulted in inventory reduction. Additionally, weekly Sales and Operations Planning (S&OP) meetings have enabled the company to quickly identify and resolve problems.

In the production planning area, the company uses a supply chain Master Planning (MP) system to execute production as planned. This allows for efficient and effective production planning, ensuring that the company is able to meet customer demand and maintain inventory levels.