Samsung reduces procurement orders amid inventory pressure: Report

Seoul: Samsung Electronics has reportedly halted new procurement orders for a brief period, telling suppliers to either delay or reduce shipments of components and parts owing to global macro-economic conditions like rising inflation, the media reported on Thursday.
A Nikkei Asia report, citing sources, said that the postponement of orders involves a wide range of components, including chips, electronics parts and final product packages.
The order applies to components for multiple key product lines, including TVs, home appliances and smartphones, the report noted.
“Samsung Electronics is temporarily halting new procurement orders and asking multiple suppliers to delay or reduce shipments of components and parts for several weeks due to swelling inventories and global inflation concerns,” the report said, citing sources.
The report said that Samsung needs to review its inventory levels of both components and final products to ensure stock on hand are manageable.
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