• China
• Japan
• Korea
• Middle East
• Pakistan
• Israel

• Haier Europe
• Italy Air conditioner
• Russia
• Spain Air conditioner
• Poland
• Portugal Air
      Conditioner

• Australia
• New Zealand

• America

Zero stock, distance and working capital

Order based performance indicates that production will not be arranged unless buyers have placed purchase orders. The entire production process is operated for ordered products. In such way, products are delivered at sight of payment and thus the goal of zero stock, distance and working capital is realized.

Zero stock

The mission of logistics is to eliminate distance with time and stock volume with time efficiency. Haier’s goal is to eliminate all stock in warehouse.

If warehouse is likened to a reservoir, Haier will change the reservoir into a flowing river by the JIT tool.

JIT purchase: Purchase is precisely arranged according to the actual needs; needed parts and raw materials are procured through worldwide suppliers for order fulfillment.

JIT supply chain: Haier’s warehouse is just a transit station in which all materials can only be stored for 7 days at most. In Haier automated high-bay warehouses, parts and components will be allowed for 3 days.

JIT delivery: Haier has established a nationwide logistics system for product delivery to every corner in the country.

Zero distance

Zero distance is another goal of the Market-chain Management. Under this system, Haier will, immediately after obtaining the purchase order, take every effort to satisfy the needs of customers. In the process, delivery efficiency plays a significant role to shorten the time with space efficiency. Buyers can place orders at the Internet and Haier will deliver the ordered goods to the buyers.

Zero distance is important for a manufacturer to acquire orders. The enterprise strives to shorten or even eliminate the distance to buyers to obtain and satisfy individual orders. If the distance is not eliminated, the manufacturer might not easily know what customers need and how to satisfy their demands.

Zero working capital

The third goal of the Market-chain Management is to realize zero working capital. It is believed to be the capability to change cash into material objects and then convert material objects into cash.

Zero working capital means no fund is used as floating capital. Before making the payment to sub-suppliers, the manufacturer receives payment from buyers. This can be realized as production is scheduled at request of customers. This will result in healthy operation of the enterprise.