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5/20/2025
20/5/2025
2025/05/20
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In a world where industries evolve at breakneck speed, staying relevant means staying connected to what truly matters—customers. For LG Electronics (LG), that means going beyond products or processes and focusing on the deeper, long-term value that we create for our customers. This story is one example of how LG's proactive, customer-first mindset helped to reimagine a traditional, legacy supply chain—and in doing so, strengthen a critical partnership in the mobility sector.
At LG, realizing customer value is not an outcome or an end result—it is a starting point. We are always pondering how to identify and address problems, emphasizing our customers' pain points and prioritizing customer value as core elements of LG’s working philosophy, thereby building robust partnerships.
Recently, this approach led LG to identify a critical challenge faced by one of our major customers in Europe with BMW Group: concerns over its logistics routes and processes. Upon reviewing the customer’s supply chain, LG figured out how to reimagine a key part of it – and the results speak for themselves. While reviewing the customer’s logistics process, LG found that the existing delivery route, which had been in place for many years, was slowing things down. The automotive parts had to travel from LG’s production site to a bonded warehouse in Europe, then to the automaker’s European logistics hub, and finally to their assembly plant in another country. The journey took at least 16 weeks – and sometimes up to 20 – making it hard to respond quickly to shifts in demand.
To solve this, LG proposed a simpler and much faster path: ship directly from LG’s factory to the customer’s assembly plant in Asia. This small change made a big difference – cutting lead time down to about 75 as little as two weeks, with a maximum of five. It was a bold move that significantly boosted supply chain efficiency and flexibility.
Recognizing the positive real-world impact of LG’s solution, and thankful for the company’s proactive customer-driven approach, the automaker has already committed to rolling out the new logistics model across all shipments starting in early 2025.
At its core, LG’s strength lies not just in solving problems—but in how it approaches them. This case illustrates more than just a successful logistics transformation; it reflects the disciplined, insight-driven way LG works across all touchpoints. From boardrooms to production floors, LG empowers its teams to think from the customer’s perspective, question legacy assumptions, and take bold, practical action. This is not an initiative or campaign—it’s a way of working embedded deep within LG’s culture. And it’s this very mindset—built on shared goals and consistent action—that keeps helping LG deliver meaningful value to its customers, one partnership at a time.
| Eun Seokhyun, President of the Vehicle Solution Company at LG Electronics (left), and Florian Weig, Senior Vice President of Purchasing and Supplier Network Digital at BMW Group (right), celebrate the BMW High Sea Sales Kick-Off Ceremony in Haiphong, Vietnam.
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