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7/23/2019 31019
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Logistics
Supply Chain Management Conference 2004
2
Haier Statistics
Haier has experienced continuous turnover increase over the past 19 years after
the establishment.
(Source: Euromonitor)
Sales Ranking on Brand Basis
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Logistics
Supply Chain Management Conference 2004
3
Background info of Haier Supply-chain Management
EnterpriseOrganization
Shortened productlife span
Customizeddemand increase
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Logistics
Supply Chain Management Conference 2004
4
Eliminate “2 Walls” in the way to success
Suppliers are destined to satisfy the
demands of end users.
Distribution contracts are signed not
only for low price, but also for feasibility
Emerson (China)started inHaier (Jiaozhou)Industrial Complex
Logistics contract signed by Haier andZhongyongtongtai
ChannelsEnd
User
Global
suppliers
Satisfy
Overseas stores
Home stores
Appliance stores
Supermarkets
Haier franchisees
Design
Haier Supply-chain improves innovations and respectscustomer value
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Logistics
Supply Chain Management Conference 2004
5
Global
resource
Win-Win
Global
users
Products
Global
distribution
Order gained
Marketing
Order performance
Products+ODM
Logistics
JIT
Order infoDistri-bution
CapitalGlobal marketing
networkBudgets
GNPGCR
Process supporting
fulfillment of new
orders
3R
R&D
HR
CR
Process supporting
fulfillment of existing
orders 3T
TCM
TPM
TQM
Value
increase
Global P/D Network
Haier Corporate Culture
Computerized Info System
Haier Supply-chain based upon business flow restructuring
1. Business flow restructuring is the basis of Haier Supply-chain Management,shifting functional to order centeredmanagement.
2. Order centered performance improves coordination in supply-chain management system,reduces supply-chain performance costs and ensures that Haier develops healthily.
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Logistics
Supply Chain Management Conference 2004
7
SRM system to improving supply-chain efficiency (www.ihaier.com)
-purchase order management
-consultancy prediction
-stock inquiry
-settlement
Global e-bidding
Supplier management
Haier Supply-chain Management supported byfair, practical and win-win coordination mechanism
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Logistics
Supply Chain Management Conference 2004
8
Haier Supply-chain Management: FLEX
1. Order oriented production, sorting and
distribution
2. R&D and application of electronic labels for
sorting system to reduce sorting errors and to
improve sorting efficiency
3. Application of VMI enhancing supply chain
flexibility and improvement capability
4. Bulletin displaying the input and output
performance records on the basis of par capita
input and output calculation to reduce material
consumption
S l Ch C f 200
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Logistics
Supply Chain Management Conference 2004
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•42 logistics centers
•Tracked in the whole process
•16,000 vehicles available•Promised 8h delivery in major cities
•Promised 24h delivery outside major cities
•Promised 48h delivery on average along
nationwide main transportation routes
Factory
Distributor
Haier Supply-chain Management: Finished products distribution
S l Ch i M C f 2004
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Supply Chain Management Conference 2004
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Supply-chain process tracked by bar code visual system
1. The bar code scanning is applied for
terminal data collection through the wholeprocess from parts and accessories supply to
finished product delivery.
2. Supervising control and visual tracking in
the whole process from parts and accessories
supply to finished product delivery.
3. Performance of the supply-chain
management is improved through automatic
data secession and responsibility traceability.
S l Ch i M t C f 2004
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Logistics
Supply Chain Management Conference 2004
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Info System improves Supply-chain Management
Bar code info system
Handling
Marketing
Order processing
Purchase
Consumer
Production
Storage
Transport
Service
Settlement
1. The info system drives the supply-
chain sync move and increases the
supply-chain response efficiency.
2. Bullwhip Effect is reduced by
shared info in the process of supplychain practice.
3. Info interchange makes the supply
chain system transparent for efficient
improvements.
S l Ch i M t C f 2004
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Supply Chain Management Conference 2004
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Warehouse floor reduced by
90% and raw materials stock
period shortened by 77%
Logistics costs reduced
by 5%
15%
Supply-chain performance costs
reduced by 10% 25%
Pur chase Pr oduction Tr anspor t Ser vice Supplier
Consumer
Customer
Link relative of purchase cost
reduced by 10% or more
continuously
Supply-chain Management reform ensuring thatHaier grows significantly
Supply Chain Management Conference 2004
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Supply Chain Management Conference 2004
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Supply-chain Management Achievements increasesenterprise competitiveness as a core
Customer
(for stocks)
(Transit Warehouse)
Previous 15 days 10 days
n days
7-10 days
Current 1 day
10
days
Sales
plan
Material
deliveryMaking Delivery Customer
Purchase
order
1 day
4-5 hours 3 days 24 hours 4.5 days
36+ndays
Supply Chain Management Conference 2004
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Supply Chain Management Conference 2004
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