An application of SCM-based logistics planning in the trade between South and North Korea

Recently, many production systems are being multi-nationalized by the globalization of industries. Based on this worldwide trend, many enterprises of Korea (the South) advanced into the North Korea (the North) and they could enjoy economic advantages such as cheap but excellent labor force and inexpensive price of land. But the reality is that they could not made the most use of such advantages because of the inefficient operation of supply chain and the slow administration process of the North. This paper explores the practical problems of supply chain management (SCM) of the enterprises that advanced into the North and suggests an improved SCM plan to deal with such problems. The experience of strategic planning of H logistics company (HLC), a well-coordinated logistic company in the South, is introduced as the case study.