LG Electronics to implement Oracle solution

The project is expected to start in the first quarter of 2006

LG Electronics India Pvt Ltd (LGEIL) is planning to connect its OEMs and raw
material suppliers so as to facilitate direct interaction between the two. This
would be done through the ERP that the company is currently implementing. LGEIL
has selected the Oracle E-Business Suite to drive its ERP and marketing
activities, which is expected to go live by August 1, 2005.

Currently, LGEIL has around 20 OEMs who manufacture various products for the
company. Earlier, the company used to buy raw materials from its suppliers, sell
them to its OEMs and then buy back the finished product from the OEMs. With this
implementa-tion the need for the company to mediate between the two groups -
OEMs and suppliers would be done away with.

Arindam Bose, IT Head, LGEIL informed that the project is expected to start
in the first quarter of 2006 with few big OEMs being brought into the network
along with the suppliers. "The full integration would be done in phases and
the expected time of finish of the project is in the third quarter of 2006. This
is an Oracle India-LGEIL initiative specific to India," he added.

The investment for setting up this system would be borne by the OEMs with LG
working towards getting them better deals through its global alliances with
various solution providers.

LG is also planning to set up an e-learning platform for its OEMs. According
to Bose, this is being done to educate the OEM partners about the new
technologies coming in, six sigma, process improvement, etc so that they can
move up the value chain.Outlining the advantages of e-learning, he said that
this would also make them more receptive to the changes being made in the
ecosystem and would lead rapid adoption of IT. "e-learning is also expected
to help the OEMs

in implementing digital manufacturing system, wherein a single line can
manufacture a variety of products at different times of the day," he added.

Pragati Simlote

New Delhi (CyberMedia News)