To being limited to something only seen in industries like automobiles, metals and electronic components, smart-factory project is soon to enter. And the credit for that goes to Samsung Electronics Co.
Aiming to share its technical knowledge with the local textile producers of South Korea, electronics giant Samsung Electronics Co on Friday said it has taken its first step towards that goal by partnering up with the Gyeoggi Province government, where it would provide more efficient production solutions to 16 textile firms, under an agreement with the Center for Creative Economy & Innovation, equipping them with its enterprise resource planning (ERP) systems.
ERP system aims to connect various areas of business, from manufacturing and procurement to accounting, for more efficient management procedures.
Under the partnership, Samsung will share its technical expertise in areas such as efficient factory management. Its ERP solutions include all the corporate management processes ― inventory management, accounting, sales and finance management.
The country’s textile industry had for decades suffered due to the slowdown, failing to renovate manufacturing facilities and adopt smart management systems. Due to this reason, the government has been opening “creative economy centres” throughout the country, with the help of conglomerates, in an attempt to bolster the development of ventures by merging various industries with information and communications technology. Termed as “creative economy”, this is part of the government’s mainstream policy, under which President Park Geun-hye has built 17 conglomerate-funded innovation centers across the nation.
Gyeonggi Province, which is home to around 1,500-odd small-and-medium-sized textile enterprises, does not have the environment in which these firms could take a bold step in business. Add to that the financial crisis that they have been facing, and we have companies reluctant to adopt ERP solutions.
“Our partnership with the Gyeonggi Center for Creative Economy and Innovation is expected to help vitalize the sagging regional textile industry, playing a crucial role in reigniting the government-led creative economy drive,” Samsung said.
“We expect the partnership to help small companies in the area benefit a lot, serving as a stepping stone to spread the smart-factory initiative across the nation,” Lim Deok-rae, chief of the Gyeoggi creative economy center, said.
According to the Ministry of Science, ICT, and Future Planning, smarter production solutions or what Samsung calls the smart-factory initiative, will be applied to 1,000 small-and-medium firms throughout the country within the next year. For this, the Ministry of Science, ICT and Future Planning is working in collaboration with the Ministry of Trade, Industry and Energy and Samsung Electronics.
Samsung has a record of forging ties with government bodies to push for wider industrial goals. Last month, Samsung tied up with the Daegu Metropolitan Government to build the Internet of Things (IoT) in the nation’s southeastern city to encourage more start-ups and help revitalise the sagging regional economy.