POSCO INTERNATIONAL : to Build a Quick Response Supply Chain ？ An online conference among key branches was held on the 9th day of this month to assess the status of its supply chain

Attended by personnel from the company's key branches, an emergency online conference was held on the 9th day of this month at its Songdo headquarters

- A company-wide full consultation with the government led by a supply management TF is expected

- President Joo Si-Bo emphasized the need for "constant management of supply chain for business stability"

POSCO INTERNATIONAL conducted a conference for global supply chain inspection of major international networks on the 9th day of this month, presided over by President Joo Si-Bo, at its headquarters in Songdo.

The meeting was intended to discuss the emergency response system and the supply processes for critical resources with high foreign dependency, given the current situation where a supply chain crisis could happen at any time due to the increasing monopoly of resource-rich countries like China and Indonesia.

The participants at the conference agreed that reducing supply chain risk requires a smooth exchange of information between the government and the company, a quickly responding system among enterprises in and out of the country, and strengthened overseas networks and sourcing capacity.

Since the collaboration with the government is critical in the event of a supply chain crisis, POSCO INTERNATIONAL plans to identify resources that require immediate response ahead of time, promote a diversity of supply chains for such resources, and utilize the diversified supply chain in the event of a crisis, all in collaboration with the Ministry of Trade, Industry and Energy.

In terms of establishing a quick response system, a non-permanent TF that connects the Global Business Management Office, Headquarters Strategy Group, and overseas network will be put in place. The Global Business Management Office will take the role of the command center, while the Headquarters Strategy Group will be charged with selecting resources and target countries, and the overseas network will focus on researching and managing ties with suppliers of those resources.

Scenarios for supply chain emergencies will also be established based on the characteristic analysis of each region/country as a means to strengthen the trading company's capacity, in addition to periodic drills with highly unpredictable resources aimed at improving crisis management.

The attendees resoundingly acknowledged the urgent need for a diversification strategy for the 19 products heavily reliant on Chinese imports, such as urea solution and ammonia. They, as the group's representative trading company, agreed on the diversification of suppliers as a means to increase the company's cost competitiveness and reduce business risks.

Following an in-conference simulation on source able raw materials that have an impact on the domestic industry, the meeting ended with a plan to assess the supply chain of 6 emergency response resources, such as manganese, ferrosilicon, and toluene, and to diversify their supply network in the countries that produce them.

With over 80 networks in 54 countries, POSCO INTERNATIONAL is the largest general trading company in Korea. On top of the extensive supply network, it also boasts the sales expertise accumulated over 50 years.

When urea solution shortage broke out in November last year, the company activated its emergency network to conclude supply contracts with Australia's Blue Nox and Mexico's Zar Kruse securing 180,000 liters of urea solution, despite it being a resource not previously handled by the company, contributing to the stabilization of the domestic urea solution market.

"Establishing a global supply chain is not just necessary in the event of a crisis. A ready-to-activate system is crucial at all times to ensure corporate stability," said the POSCO INTERNATIONAL President Joo Si-Bo. As a final note, he asked the participants to "build a reliable supply chain system utilizing their global network capacity by fully cooperating with the government."