Case Study Of Haier

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1. Who is Haier? Haier Group is an innovative Chinese multinational consumer electronics and home appliances leader headquartered in Qingdao, Shandong province, China. The company is the world’s largest brand of white goods – refrigerators, washing machines, air conditioners, and water heaters – as well a as major producer of TVs, small appliances, and smartphones. In china alone the organization maintains 6,000 country stores, 24,000 town stores, 150,000 vendor contractors, and 19,000-plus service centers. According to data released by Euro monitor, in 2014 the Haier brand had the world's largest market share in white goods, with 10.2% retail market share volume. Haier’s strategy is product innovation combined with supply chain innovation. The firm is the number-one white-goods producer in China and has achieved…show more content…
What were the company’s supply chain issues? Haier’s supply chain was plagued by two major issues, quality and procurement (Cohen & Roussel, 2013, p. 118). Quality was a central issue and a roadblock to becoming the global brand that is Haier today. In 1985 Haier addressed the issue of quality through collaboration with Liebherr Group. Liebherr Group – an appliance manufacturer based in Germany provided Haier with the training and technology to develop quality processes to achieve four-star rating refrigerators, (Nawaz Kayani, Janjua, Ahmed, & Wasim, 2013). The second major issue was procurement. The central problem was the number of suppliers that Haier used for the refrigerator cooling system. The suppliers would send parts that still needed to be assembled into the cooling system, and any delay from one or more suppliers delayed the entire cooling system station and follow-on shipments. Haier resolved the issue by reducing the number of suppliers and now receives complete cooling system units for assembly allowing for better management of vendors and increased accuracy in forecasting, (Cohen & Roussel, 2013, p. 122). 4. What changes were

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