For the thirteenth consecutive year, it has been the first in the industry to talk about the wisdom of Haier's procurement and supply chain management!

In recent years, Haier has had more than a dozen successful cases in the case bases of famous institutions of higher learning such as Harvard University, Lausanne International School of Management, the European Institute of Business Administration, and Kobe University in Japan. It has become a universal textbook for business schools around the world. only one. This symbolizes that Haier has developed from learning advanced foreign management methods 18 years ago to enter the frontier of international management with its own innovation management. Today we learn Haier's management from the perspective of procurement and supply chain!

Haier Group started its business in 1984. Through 20 years of arduous efforts, it has developed a collective small factory that is on the brink of bankruptcy into a famous multinational company at home and abroad. In the past 20 years, many companies have encountered such difficulties and withdrew from the stage of history. Haier's development is getting better and better, and it is inextricably linked to its procurement and supply chain management models.

1 Haier Supply Chain Management

Since 1998, Haier has proposed to focus on the management of the supply chain, centering on the optimization of the supply chain, re-engineering and recreating the original business processes within the entire group, and fully integrating itself with large international companies and strengthening the company’s The market adaptability has greatly enhanced Haier's rapid market response and competitiveness and ensured the sustainable development of the company.

Haier is not on paper like some companies on supply chain management. It has specific analysis of specific issues for its own situation, and it will adjust its supply chain management model as the surrounding environment changes. In order to adapt to the development of supply chain management, Haier must start with the first-tier suppliers involved in the production of products and continue to interlock until the goods reach the end-users. They truly transform the business processes according to the characteristics of the supply chain and make each node enterprise Both have self-organizing and adaptive capabilities to handle logistics and information flow. Haier’s supply chain ties are inseparable from the support of technical systems. In 1998, the company first reorganized its business through a centralized approach to order processing. From stock-based production to order-based production, Haier’s modernization began. Logistics model. Haier's technology system has also greatly liberated the supply chain managers' productivity, allowing supply chain managers to focus on solving real problems without having to be caught in the tangled standards. Therefore, Haier's supply chain management personnel are relatively few and have higher efficiency.

2 Haier's purchasing strategy

Scientific and effective procurement management can achieve the goal of “win-win”. Haier’s procurement strategy is to use global networks, focus on purchases, reduce procurement costs with scale advantages, and streamline the supplier team. For Haier, this can reduce procurement costs, increase product quality and reduce inventory levels while obtaining stable and competitive prices, and achieve better product design and product changes through cooperation with suppliers. Faster response rate; For suppliers, while ensuring a stable market demand, due to the long-term partnership with Haier, we can better understand the demand, improve product production processes, improve the operation quality, and reduce production costs. , to obtain higher profits than the traditional procurement model. Therefore, Haier continuously strengthens procurement management, saves capital from procurement, shakes out coins from procurement management, and makes purchasing a profit center of the company!

Haier's main features of purchasing management:

1, the transaction process is simplified, reduce costs. Since the supplier has established a partnership with Haier, the procedures for signing the supply contract have been greatly simplified, eliminating the need for multiple consultations between the parties and reducing transaction costs. At the same time, quality and delivery time can also be guaranteed, so that the procurement of materials directly into the Haier manufacturing sector, simplifying many of the non-value-added procurement workflow.

2, to ensure quality. The quality of Haier Purchasing Materials purchased by Haier Purchasing Department has a great bearing on the quality of Haier's final products. Haier and the supplier are partners in the supply chain - meaning that the supplier's qualification, product quality, and credit level are all reliable. Trustworthy, this helps to ensure product quality.

3, establish a procurement platform. Haier Logistics and suppliers have also built a fair, interactive, and win-win procurement collaboration platform. Through the procurement platform, Haier has not only accelerated the response speed of the entire supply chain, but also achieved a win-win situation with the suppliers.

4, inventory strategy: zero inventory management.

3 Haier's Supplier Management

There are two modes of supplier management. One is the competitive relationship model. The second is the win-win relationship model. The centralized performance of modern supply chain management ideas is cooperation and coordination. Therefore, under the trend of modern supply chain management, Haier has chosen a win-win relationship model. The win-win relationship model is a cooperative relationship. It emphasizes sharing information between the cooperating suppliers and Haier and coordinating mutual actions through cooperation and consultation.

Haier began to optimize its supplier network in 1998, dismantled the original supplier system, and re-selected suppliers to form strong alliances and win-win cooperation. Haier's suppliers are optimized from 2,200 to 721, including 59 of the world's top 500 companies, focusing on the incentives and controls that focus on the entire process. The main incentives for suppliers are through quota allocation. The ratio of quotas from the original manual statistics to the current system is determined by three comprehensive factors: quality assessment, supply evaluation and price ranking. Haier's benefits to suppliers' resource integration are obvious. Not only can they purchase high-quality components, but also bring huge economic benefits to Haier. The reduced procurement cost in 1999 alone reached 500 million yuan in 2001 in 1999. On the basis of years, another one billion yuan has been lowered. Haier's evaluation of suppliers mainly focuses on quality, cost, delivery date, and whether it can participate in the early design process. The supplier's evaluation is included in the evaluation of the supplier's quality system. Haier strictly eliminated three months of unsatisfactory suppliers, and asked suppliers who had certain problems to carry out rectification and ensure the punctuality of supply.

Haier's advantages of supplier management:

1. Haier assists suppliers to help suppliers reduce costs, improve quality, and speed up product development;

2. Increase efficiency and reduce transaction/management costs by building mutual trust relationships;

3. Long-term cooperation in trust replaces short-term contracts;

4, more information exchange.

4 Keep pace with the times, a new model of Haier procurement management

In 2014, Haier and Baizhuo hand in hand to establish the world's first in-depth docking platform for enterprise purchasing systems (linking of online purchasing and procurement platforms), setting up a buyer channel for Haier, opening more than 50 billion annual purchases to global suppliers. , Leading the "System in-depth docking, real-time sitting quotes" procurement of new fashion. Bio-Bridge adopted Haier Group's online shopping and recruitment of precise advertising and suppliers to seamlessly integrate with Haier's platform and realize the perfect transformation of traditional procurement companies to e-commerce companies. (Haier Cloud E-Commerce) s plan.

Haier's advanced procurement and supply chain management helped Haier to maintain the top position in the industry for 13 consecutive years, maintaining an 80% growth rate for 16 years in a row. The capital turnover reached 15 times a year, achieving zero inventory and zero operating costs. Zero distance with customers has broken through the bottleneck of building a modern enterprise's core competitiveness!