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Supply Chain Management Conference 2004

Haier Supply-chain Management

Presented by:

Liang Haishan, Vice President of Haier Group

Logistics
1

Supply Chain Management Conference 2004

Haier Statistics
Haier has experienced continuous turnover increase over the past 19 years after the establishment. Sales Ranking on Brand Basis

(Source: Euromonitor)

Logistics
2

Supply Chain Management Conference 2004

Background info of Haier Supply-chain Management

Shortened product life span

Enterprise Organization

Customized demand increase

Logistics
3

Supply Chain Management Conference 2004

Haier Supply-chain improves innovations and respects customer value
Eliminate “2 Walls” in the way to success Overseas stores

Home stores

Global suppliers

Satisfy

Design

Channels

Appliance stores Supermarkets

End User

Haier franchisees

Emerson (China) started in Haier (Jiaozhou) Industrial Complex

Logistics contract signed by Haier and Zhongyongtongtai

Suppliers are destined to satisfy the Logistics demands of end users.

Distribution contracts are signed not only for low price, but also for feasibility. 4

Supply Chain Management Conference 2004

Haier Supply-chain based upon business flow restructuring
Process supporting Process supporting fulfillment of existing fulfillment of new orders（3R） orders（3T）
TCM TPM TQM R&D HR CR
Value increase

Win-Win GNP Global Logistics
JIT

Marketing Products Order gained Global distribution

Order performance
Products+ODM

resource
Global P/D Network

Order info Distribution
Capital
Budgets

GCR

Global users
Global marketing network

Computerized Info System

Haier Corporate Culture
1. Business flow restructuring is the basis of Haier Supply-chain Management，shifting functional to order centered management. 2. Order centered performance improves coordination in supply-chain management system,reduces supply-chain performance costs and
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