Samsung Taps Big Blue

Electronics giant selects IBM to design its e-procurement system

Armonk, NY  October 10, 2002  Samsung Electronics has selected IBM Korea to design its e-procurement system, according to an announcement out of Big Blue this week.

IBM said its consultants are going to help Samsung design its system based on IBM's own e-procurement and sourcing experience. The transformation is intended to help Samsung Electronics reduce the cost of purchased parts and components, shorten purchase cycles, and improve overall productivity and work efficiency.

"By improving our procurement processes, we anticipate an improvement to our global competitiveness," said Dong-Wook Min, vice president of corporate procurement strategy for Samsung Electronics. "IBM's experience in ... e-procurement solutions and strong technological foundation will help achieve the costs savings and performance improvements Samsung is seeking."

"An e-procurement system based on global standards will help Samsung increase its brand value," asserted Iggyo Kim, director of sectors and emerging business for IBM Korea. "IBM itself has achieved improvements in brand value and operational efficiency through its global e-procurement system."

IBM said e-procurement system has been a core element of the company's e-business transformation. According to Big Blue, the company has seen its e-procurement purchases grow from $7 billion 1998 to $40 billion in 2001.