Haier Logistics

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Haier Logistics’ revolution Case Studies Haier Logistics’ revolution Case Studies 1、 Background Haier is the world 's largest home appliance brand, founded in 1984 in Qingdao; the current Chairman of the Board, CEO Zhang Ruimin is one of the main founders. At present, Haier has established 21 worldwide industrial park, five R & D centers, 19 overseas trading companies, employs more than 70,000 people worldwide. In 2011, Haier achieved a global turnover of 150.9 billion yuan, the brand value was as high as 96.28 billion yuan, became China 's most valuable brands in 11years consecutively. But in Haier’s growing process, the problems it encountered are endless. Especially in the background of the information technology network economy…show more content…
Haier and Haier Logistics made great reforms at the operational level, mainly contained the following points. (1) How to achieve zero quality defects 1) Selection of suppliers Haier has a strict filtering criteria and principles in the selection of suppliers with a comprehensive performance evaluation system. In selecting suppliers, quality is an important part of the evaluation criteria. By optimizing the integration of internal resources and external resources, Haier enable suppliers to optimize the original 2 336 to 840, an international supplier of proportion to reach 74%. Haier has established a strong global supply chain network. CE, Emerson, BASF, DOW and other Fortune 500 companies have become the supplier of Haier, and quality gets great assurance. 2) No sluggish stock MTS-MTO means to eliminate space with time; to eliminate storage space with the speed of time, MTS mode shifts to MTO which means to produce by order, this kind of production model eliminates blindness and errors on demand forecasts in the mode of MTO. Meanwhile Haier Logistics established the "One flow and three network", a powerful ERP system, realized the JIT, stock replenishment based on real-time operation generally, so inventory largely wiped out. The elimination of sluggish inventory means that parts and Semi-manufactured goods are in the best state in the production line for a step by step flow.

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