LG Electronics introduces on-line warehouse system

LG Electronics announced on January 14 that it will introduce a new ?VMI (Vendor ?Managed Inventory)?e-Hub?system, an on?line warehouse to reform its logistic management system.

?VMI e-Hub?is an advanced logistic flow management system that maintains proper stock in the supply chain based on real-time open stock information with tight connections among buyers, providers, and warehouse operators, said LG Electronics.

LG Electronics expects that the e-Hub introduction would guarantee improved management including a 40% cut for stock, shorter delivery, stable procurement of materials. It starkly contrasts with the old-style logistic warehouse that has reached its limits in maintaining stocks due to difficult demand prediction and inefficient management.

The company predicts that this system will save 24 billion won this year and 50 billion won next year, creating a win-win situation for it and its 210 logistic providers.