SEOUL -- BUSINESS WIRE -- November 16, 2000 -- UPS is signing a Memorandum of Understanding with Samsung Electro-Mechanics Co., Ltd. (SEMCO), a division of Samsung, to create a task force to streamline SEMCO's international transportation and global supply chain.
Under the agreement, the task force will review SEMCO's international transportation needs, its global supply chain management and look at outsourcing opportunities for UPS. When the task force has completed its six-month review, it will present its findings to SEMCO management. UPS personnel on the task force will represent logistics, transportation, brokerage and finance. SEMCO currently manages its supply chain in-house.
"UPS was chosen after extensive competitive research including visits to UPS and its competitors' operations," said Hyung-Do Lee, president and CEO of Samsung Electro-Mechanics Co., Ltd. "UPS's global expertise and leading-edge technology meets our requirements for an efficient, cost-effective logistics provider. Our decision to outsource the management of SEMCO's global supply chain is a first for the company. We believe that superior logistics and supply chain management is a key to being competitive in today's economy."
UPS plans to streamline operations and increase time to market, according to Ron Wallace, president of UPS International at the MOU signing ceremony. UPS presently has a relationship with SEMCO and its parent company Samsung, handling SEMCO's express transportation from Korea to the rest of the world. Samsung is also a client of the UPS Logistics Group in the United States.