Home > Device & Semiconductor > Article

Hynix’s Secret to its Competitiveness: SCM 2007/11/27 By Hyung-joon Yoo “Hynix has strength in excellent manufacturing but efficient real-time Supply Chain Management (SCM) is the secret to competitiveness.” Hynix has received the Korea SCM Award at the 6th Korea SCM conference for its achievement in global integration based on consumer-friendly supply chain management. The semiconductor industry is susceptible to volatile demand and has a short-term cycle. In addition, profit depends on supply chain management capability because of complex logistic situations. Good examples of SCM can be found that executives at the company do not create separate materials for meetings. They use SCM-based ‘Hynix Global Management System (HiGMS)’ and make decisions based on the real-time monitoring of production, capacity and inventory in its 8 branches in the world. CIO Jung-gon Nam, main architect of the company’s SCM said, “We may not have the world’s best SCM infrastructure, but we may be the best company to make the use of the system. The management has recognized the importance of SCM and encouraged employees to utilize the system.” Hynix’s method of establishing SCM is unique. In early 2000, the company went into red in balance sheet. But since 2003, the company has begun building the SCM steadily. In 2006, it completed the system in overseas branches and now it is establishing a system for sales and customer management. The company focuses on establishing an inside SCM network first and then on the system between customers and suppliers. By early next year, it will finish the construction of the SCM network linking to customers. CIO Nam said, “When completed, the SCM will enable us to link orders at sales points to line allocation and even to predict future condition and order. As market analysis and order prediction are getting important in supply excess, the SCM network will help our sales and marketing activities.” “Most of all, the management’s willingness is important in that establishing SCM is a hard task for employees.” He added.