Supply chain management six sigma: a management innovation methodology at the Samsung Group

Purpose – This paper seeks to introduce a six‐sigma based methodology for the SCM domain which was developed and has been used in Samsung. Design/methodology/approach – The paper provides a detailed description of how and why a six‐sigma‐based methodology for the SCM domain was developed in Samsung and presents a real industry case to illustrate the usage of the methodology. Findings – In Samsung, the effort and investment in synthesizing SCM and six sigma, and developing a unique six‐sigma‐based methodology to improve its SCM operation, have turned out to be fruitful. The Black Belt program has produced highly qualified and talented SCM specialists, who are currently training the methodology to members in their organizations and leading SCM projects. SCM projects are being prepared and conducted in a more disciplined way and their outcomes are continuously monitored and shared through the company's repository. Research limitations/implications – To generalize its usefulness, the methodology needs to be applied to the SCM projects of those companies whose organizational and cultural contexts are different from those of Samsung. In addition, the overview of an illustrative SCM project presented in the paper is brief due to space limitations. Practical implications – Today, SCM is increasingly recognized as a strategic way to innovate a company's business operation. This paper shows that a methodology such as Samsung's SCM six sigma can be the key to conducting SCM projects in a more disciplined way and for fruitful outcomes. Originality/value – The paper introduces a unique six‐sigma‐based methodology for the SCM domain which has been developed and applied in a leading global manufacturing, financial, and services conglomerate. This methodology could be adapted by other companies for their SCM projects to increase the likelihood of project success.