What was their competitive strategy& order winner? Product innovation is Harrier’s competitive advantage, which combined with supply chain Innovation. Based on different customer’s lifestyle, Haler focus on product differentiation, which produced hundreds of unique products across Healer’s strategic model with low-end, value, and high-end brands. Such competitive advantage Is created by supply chain Innovation. Haler cooperate with suppliers Into product design.
It uses modularization to speed up the design process and to facilitate the manufacturing process. And Instead of partnership with number of suppliers, Haler lust works with two suppliers to concentrate on quality. The order winner for Haler Is that corporate strategy is focus from R to after-sales service and support. Product differentiation is designed to satisfy customer with variety expectations. After -sales customer service provides maintenance and repair service for customer’s support. 2. What changes in SCM strategy and macro design were taking place?
SCM strategy is highly effective, macro design is make to order, no product is developed without taking account of what customers want, and no product is manufactured thou a real customer order. 3. How were their SCM execution processes planned to support this strategy? In order to achieve product innovation as competitive advantage, execution process has support such strategy in all dimension, such as supplier management, production management, logistics management, service management and order management.
Haier Strategy Analysis
In supplier management, Hair collaborate with suppliers to work with reduced number of suppliers to develop a cooling system that reduced refrigerator power consumption by 30 percent and time to market by 33 percent. Such example shows Hair supplier’s management effectively achieves production innovation by collaboration. In production management, Haler uses modularization to facilitate the manufacturing process. The factories are facilitating mass production of deferent refrigerator models.
In logistics management, Haler established Inbound and outbound logistics subsidiary, 1000 full trucks leave Haler factories everyday with finished products, such capacity make the promise end-customers speedy delivery possible. In Service management, Haler established after sale services to customers, for example, people can contact a toll-free hooting and bring their appliances to the repay Haler store for repair. In order management, make to order Is the strategy, which means company will not ship an order until the retail customer has paid In full. It looks Like Haler Is In stage 4, wanly Is cross-enterprise collaboration Ana optimization. Evidence shows in its global and domestic supply chains strategy. In global supply chain, Hair spans six large regional markets. Two strategies differ markedly, but the supporting supply chains have some thins in common. Firstly, Hairier hires local staff in each market, each market owns its local team to develop coal sales and distribution channels.
Second is the collaboration across global leadership for defining harmonize supply chain processes, including demand planning, procurement, and manufacturing, logistics, and order delivery. These are the common strategy as standardization. For data sharing process, S process enables Hairier to align sales and manufacturing plans on a weekly basis both in China and other regions. It looks like each market is responsible for its local knowledge part, but at the same time, entire global supply chain is aligned together for supply chain strategy.