Haier: Zero zero zero inventory working capital by fdjerue7eeu


									Haier: Zero zero zero inventory working capital
 ?Haier Group, is today's performance, and implementation of a
comprehensive information management are inseparable. With advanced information
technology, Haier launched a management revolution: a market chain as a link to
order information flow as the center, driving goods and capital movement. Through
the integration of global supply chain resources and user resources, gradually to the
"zero inventory, zero working capital and (with users) Zero,"
the ultimate goal.

Reconstruction of the market chain to link the business process

   Haier products available more than 10,800 species, an average of 1.3 daily
development of new products, daily products, 5 million out of libraries; year reached
99.6 billion yuan of funds operating out of an average of 276 million settlement to be
done every day, 1800 multiple accounts; in the world with nearly 1,000 suppliers
(including 44 Fortune 500 companies), marketing network more than 53,000; has 15
design centers and more than 3,000 overseas managers. Such a large business system,
relying on the traditional pyramid-style management structure, or matrix model, it is
difficult to maintain the normal operation of business process reengineering

   Sum up years of management experience, Haier explore a set of market chain
management model. Simply put, the market chain is to internalize the external market
benefits. In the past, enterprises and the gap between the market, within the enterprise,
the relationship between staff only on the lower level or work colleagues. If the
product is market complaints, or poor sales, the most worried about is that business
leaders. The following staff may also be very worried, but so do not be put into effect.
Haier not only the face of the whole enterprise market, and allow enterprises in the
face of every employee to market successfully to the market mechanism into the
enterprise's internal management, the staff between the staff and the
superior-subordinate relationship into a market relationship mechanism for the
formation of the internal market chain. Among staff to implement sst, which claims,
claims paid, trip: If your products and good service, you pay the next procedure, or
will you claim, or "bright red."

Of the market chain model, Haier Group Zuzhi institutional and operational processes
have been adjusted to the original each for finances, procurement, sales operations
Quanbufenli Chu Lai, Zheng He into Shangliutuijin headquarters, Wu Liu advance
headquarters, cash flow advance headquarters, to implement All groups unified
marketing, purchasing, billing; to the original functions of management resources to
support integration into the innovation process orders 3r (R & D, human
resources, customer management) and infrastructure support processes 3t (full budget,
a comprehensive device management, total quality management), 3r and 3t
corresponding independent business process services company.
Integration, the Haier Group headquarters and overseas business flow Promotion
Headquarters Responsible for building a global marketing network users from the
resources available in the global order; products 3r support the Department in support
of processes continuously create new products to meet customer needs; Products
Business Unit will business flow for the orders and orders for products created by the
implementation of the implementation of this Part; Logistics Division resources to
build global supply chains using global sourcing distribution network to realize jit
order Jiasu flow; cash flow structures Quanmian budget system; it is formed directly
face the market, and complete system and core processes 3r, 3t and other support

Business Flow Division, Overseas Division from the global marketing network to
promote access to the order form order information flow, is passed to the Products
Division, Division and logistics headquarters, logistics, procurement and distribution
headquarters in accordance with the order arrangement, the product division
organization of production; produced by Logistics distribution system to the users,
while in the user's money also flows in turn passed through to the business
flow, product headquarters, logistics and supply-side hand. This will form a horizontal
network synchronization of business processes.

  erp + crm: quick response to customer demand

   Business process reengineering based on Haier formed a "front a
network, the background of a chain" (front of a net is a Haier customer
relationship management web site (haiercrm.com), the background of a chain of
Haier's market chain) and closed-loop system, built within the enterprise
supply chain systems, erp system, logistics and distribution systems, cash flow
management throughout the country clearing systems and distribution management
systems and customer service to respond to call-center system, and formed the core of
order information flow seamless connection between the various subsystems of
system integration.

Haier crm system erp system and the purpose is the same, is to respond quickly to
market and customer needs. Front of the crm web site as a bridge of communication
with customers quickly, the customer needs and rapid collection, feedback, and
customers to achieve the zero; background erp system can be triggered quickly to
customer demand supply chain, logistics and distribution systems, financial clearing
system , customer service systems, process system, to achieve the synergy of
customer needs service, greatly reducing response time to customer needs.

Haier Group on March 10, 2000 investment in e-commerce set up Haier Co., Ltd., a
comprehensive b2b suppliers to carry out the face of business and individual needs for
consumer b2c business. Procurement through e-commerce platform and custom
platform and terminal suppliers and sales to establish a close relationship between the
Internet and establish a dynamic enterprise alliance, to achieve a win-win goal of
raising the competitiveness of both markets. Haier built in e-commerce platform,
businesses and suppliers, consumers realize interactive communication, so that the
information value.

The face of individual consumers, Haier can achieve online sales nationwide.
Consumers can browse the website of Hale, purchase, payment, and then wait for
Haier in home fast delivery and installation services.

cims + jit: Haier e manufacturing

Haier e-manufacturing is carried out under the orders of mass customization. Haier
erp system automatically generates a daily accurate delivery of materials to the
production line bom, wireless scanning, infrared transmission technology, modern
logistics support, to achieve time, quantitative, fixed the Sanding distribution; Haier
original than stop logistics, achieved From mass production to mass customization of

E manufacturers need to achieve flexible manufacturing system. To meet the
individual needs of users in the process, Haier using computer-aided design and
manufacturing (cad / cam), the establishment of computer integrated manufacturing
system (cims). In the development of decision support systems (dss), based on
man-machine dialogue through the implementation of planning and control, from
material resource planning (mrp) development to manufacturing resource planning
(mrp-ⅱ) and enterprise resource planning (erp). Still in development, production and
physical distribution in one-time production (jit), supply chain management in fast
response and flexible manufacturing (agile manufacturing), and coordinate design and
production through the network of CE (concurrent engineering) and so on. These new
methods of production management of the information technology revolution and
progress in integration.

Haier now has been implemented within the whole group cims (Computer Integrated
Manufacturing System), production lines can be mixed to achieve the production of
different types of products. In order to make the production line more flexible modes
of production, Haier has developed eos targeted business systems, erp system, jit
Sanding six distribution systems, auxiliary systems. It is due to the adoption of
flexible manufacturing systems such fims, Haier will not only be able to achieve a
single computer customization, can also produce more than a thousand kinds of
configurations of the computer, but also to achieve 36-hour fast delivery.

Order information flow-driven: Synchronous Concurrent Engineering

  Haier's corporate information management is a comprehensive order
information flow as the center, promoting the logistics, cash flow of movement, so in
Haier's information management, concurrent engineering is very important.

Haier sales companies such as the United States issued 10,000 units in the online
orders. Order online publishing the same time, all departments can see, and also began
to prepare the related work in parallel advance. Not meeting with each department as
long as that order-related data, well they should do on the trip. If the purchasing
department will make a purchase order for a look at planning, design departments are
good orders require the design drawings. March 24, Hebei Hualian site e-commerce
platform by Haier issued five orders for Taiwan with air conditioning, order No.
5000541, Haier logistics purchasing and manufacturing sectors also received the order
information, the computer system immediately shows out for the Haier commercial
air-conditioning manufacturing division of the lack of material conditions, the
purchasing department and compressor supplier on the Internet to achieve bidding,
online distribution department of the Peisongqingdan four hours Xian Shi Yi Nei
Gong position expected delivery time. March 31, Haier commercial air conditioning
has been completed customized products, Taiwanese air conditioner outdoor unit 5
has storage.

Haier Electronics Division of the U.S. high-America Haier TV is the implementation
of information management, using a typical case of concurrent engineering. The
traditional development process is a serial process, departments isolated from each
other, work is clearly marked stages of product development according to the order,
resulting in the development cycle, high costs, this process takes 4 to 6 months.

Haier Electronics Division to ensure that the U.S. high-America National Day in 2000,
before color TV market, according to market requirements, the original six month
development cycle to be compressed into two months. At 2 months of the total target,
the U.S. development projects with high U.S. color TV set up development and
market chain, according to information management ideas, set up two networks, one
is the participation of each department to the main line of multi-functional integrated
product product development team; the other is the main line from the procurement
supply chain network of external cooperation.

In product design, high-America TV is the U.S. technical personnel to the market
through access to user demand information, and to the concept of information into
product development. In the process design, through internal processes of
reconstruction and optimization of the advantages of integrating external resources in
the network, in the shortest possible time, to order the lowest cost to meet the demand.
In the design process, a component designed, the logistics can be organized
procurement and logistics involved in the design, improve product quality.

Haier America finally received orders from the high to the U.S. color TV market only
2 and a half months to create the product development of a miracle.
Zero, zero inventory - zero working capital

Haier believes that competition among enterprises has a direct competition from the
past turned to the customer competition. Haier crm-end network system is to achieve
the zero sales. Haier has implemented erp crm system and the system being
implemented, is to remove the impact of synchronous communication and accurate
transmission of information barrier. erp is the removal of various departments within
the enterprise the "wall", crm business and customers is the
removal of the "wall", so as to achieve rapid access to customer
order, quick to meet customer needs.

Under the traditional management of enterprise procurement under the production
plan, the market because they do not know where it is for the stock purchase, there are
many enterprises, "Reservoir." Haier is now the implementation
of information management, through three jit get through the reservoir, turn it into a
flowing river, constantly mobile. jit purchasing a computer system that is in
accordance with the procurement plan, how much, how many purchases. jit feeding
refers to the various components being stored in the Haier-dimensional database, and
then by the computer matching, the configured parts directly to the production line.
Haier built a logistics center in the national system, no matter where in the country,
Haier fast delivery can achieve jit distribution.

Stock funds take up the issue only, the most important is that a lot of bad debts will
form. Electronic products are now updated soon, once the new generation of products,
raw materials and finished goods price declines are larger backlog of finished
products only the last way out for lower prices, it will rise to the present market price
war. No matter how much corporate speak nicely, the pressure to lower prices from
the inventory. Haier with the timely delivery of time to meet user requirements, the
ultimate elimination of inventory space.

  Working capital, the domestic call it liquid assets, called the operation of foreign
capital. Current assets minus current liabilities equal to zero, is zero working capital.
Simply put, that is, the spot should be cash. To achieve the spot cash must-order.

Haier has an idea: "cash flow first, profit second."
"Cash flow first" is that companies must have a cash flow of
support, because profit is seen from the profit and loss account, but the preparation of
the balance sheet and income statement are the principles of accrual. Produced out
after product sales, but the money did not come back. While can be calculated as sales
revenue, profit, or you can calculate taxes, but no cash support. Therefore, the
relevant state departments suggested that listed companies must prepare the third table:
cash flow statement.
After accession to wto, Chinese enterprises will face more intense competition. Will
maintain the spirit of Haier crm, scm effect optimization, promotion erp application
support for third-party provider of Haier flow and the development of third party
logistics requirements, as third-party information application platform, so that Haier
into the "globalization" trend of the economy.

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