Haier Logistics

Topics: Supply chain management, Logistics, Supply chain Pages: 12 (1666 words) Published: December 11, 2014

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 is sweeping the global economic context, becoming the representative new wave. In order to integrate into the global competition better to create a real world's leading brands, reducing costs has been unable to meet the enterprise’s competitiveness in the market. In order to gain a competitive edge in the international market we have to meet the individual needs of customers, we must achieve the aim of zero-defect quality, zero occupancy, and zero distance service. 2、The formation of corporate strategy

In the period of restructuring, the company's CEO Zhang Ruimin said that "In the information age we should be user-centric to get customer’s satisfaction as the biggest target, otherwise corporate profits is impossible in this era the value chain is not suitable ." How we can improve customer satisfaction is therefore a major problem enterprises had to face. Under the guidance of this idea, Haier through research, careful analysis, finds the only way to solve this problem is to propose a thorough reform from two aspects, one from the organizational structure, through business renovation and redesigning processes to improve the business processes of the market reaction speed so as to shorten the distance between the corporate with customers; the other one from the management innovation mechanism. We should enhance employees’ sense of responsibility and creativity to build staff levels of organic links. Furthermore, Haier made internal organizational structure to adapt changes in the external market, to create a global brand and make a marketing strategy based on network system. Around these three criteria, Haier in March 1999 proposed three changes. The enterprise must complete functional chain structure as a link to a market-based structural transformation process; the main business of the domestic market change to foreign markets; manufacturing shift to services. In order to achieve business transformation objectives, Haier focus the reform on logistics and supply chain reformation, to build a more robust global supply distribution network , improve fluency in the whole process from production to reach the hands of consumers, improve service quality , open foreign markets. Haier Logistics emerged precisely in this context. Haier Logistics was founded in 1999, relying on advanced management concepts of Haier, and Haier's strong network of resources to build the core competitiveness of itself for global customers with the most competitive integrated logistics integration services , becoming the world 's most competitive third-party logistics companies quickly. Haier Logistics focus on the whole process of the entire supply chain optimal synchronization works, continuing to eliminate duplication of internal and external links, invalid labor, so that the resources get effectively used in every step; so that the logistics business support customers satisfied. Under the efforts of Haier logistics, it has made remarkable achievements. Sluggish materials decreased 73.8%, 50% warehouse space reduced, inventory funding decreased by 67 %. Haier logistics made a significant contribution to make Haier become a world brand and get the public's favor. 3、The problems should be solved

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