Haier Ap­pli­ances In­dia suc­cess story con­tin­ues with ef­fi­cient scm sup­port

Haier Ap­pli­ances In­dia, which is a 100 per cent sub­sidiary of Haier Group, is one of the fastest grow­ing con­sumer durables com­pa­nies in the world. Ben­zon John, Gen­eral Man­ager – Sup­ply Chain, Haier Ap­pli­ances In­dia un­veils the suc­cess story of the com­pany

Cargo Talk - - User’s Perspective - RATAN KR PAUL

a ccord­ing to John, In­dia is one of the key mar­kets for Haier Group, and the com­pany has ma­jor plans for the coun­try in the com­ing days. “Our growth rate in In­dia is far ahead of other brands,” he as­serted. The com­pany ini­ti­ated its com­mer­cial op­er­a­tions in Jan­uary 2004. “Our launch in In­dia started with in­no­va­tive prod­ucts, which were de­signed keep­ing the day-to-day cus­tomer needs in mind – prod­ucts that will trans­form the ev­ery­day liv­ing into in­spired liv­ing,” he added. In Au­gust 2007, Haier ac­quired a man­u­fac­tur­ing fa­cil­ity, lo­cated at Ran­jan­goan in Pune, Ma­ha­rash­tra. Spread over 40 acres of land, the plant has ca­pa­bil­ity to man­u­fac­ture re­frig­er­a­tors, CTVs and wash­ing ma­chines. Haier has up­graded the new fa­cil­ity with state-of-the-art equip­ment to cre­ate an R&D fa­cil­ity and ad­di­tional ca­pac­ity for pro­duc­tion of re­frig­er­a­tors at the plant. The fa­cil­ity was ac­quired as a part of pur­chase of ap­pli­ances busi­ness of An­chor Dae­woo In­dus­tries by Haier In­dia. With a phi­los­o­phy of zero in­ven­to­ries and on-de­mand man­u­fac­tur­ing and de­liv­ery, Haier adopted the user-ori­ented large-scale cus­tomi­sa­tion strat­egy, thanks to a strong sup­ply chain and lo­gis­tics mech­a­nism. “Sup­ply chain is the back­bone of ev­ery com­pany. In the ear­lier days, sup­ply chain func­tions were play­ing their roles silently from be­hind the cur­tains. But of late, crit­i­cal de­ci­sions of the com­pany are taken only af­ter tak­ing feed­back from the SCM team,” John re­vealed. In his opin­ion, ev­ery ru­pee saved by SCM in their op­er­a­tions in turn goes back to the prod­uct, mak­ing it more com­pet­i­tive in the mar­ket. Ul­ti­mately, the cus­tomer be­comes the win­ner. “We have adopted this pol­icy suc­cess­fully at Haier and the com­pany growth is prov­ing our SCM phi­los­o­phy right,” he ob­served. John fur­ther main­tained that good 3PL com­pa­nies help man­u­fac­tur­ing com­pa­nies to save lot of money. 3PL ser­vice providers come with ex­per­tise in var­i­ous di­vi­sions of SCM. Also they are hav­ing var­i­ous ver­ti­cals han­dled by ex­perts from the in­dus­try. This helps the part­ner com­pa­nies to dis­cuss is­sues faced by them with their 3PL team and take ap­pro­pri­ate de­ci­sions. “It’s very im­por­tant that third-party lo­gis­tics ser­vice providers gel with com­pany’s vi­sion and poli­cies. In fact, they rep­re­sent the com­pany in many places. For ex­am­ple, when they de­liver the prod­ucts to cus­tomers, they have to en­sure that the de­liv­ery is done as per the re­quested de­liv­ery time of the cus­tomer, whether the prod­uct is de­liv­ered in the cor­rect pack­ing with­out any dam­age, whether the doc­u­men­ta­tion was done cor­rectly and so on. As a 3PL ser­vice provider, th­ese part­ners should work as an ex­tended arm of the com­pany. If the 3PLs fail to reach this level, chances of fail­ure are very high,” he feels. John also high­lighted some crit­i­cal is­sues which are be­yond a lo­gis­tics ser­vice provider’s con­trol. “Ris­ing fuel prices is a ma­jor area of con­cern for the man­u­fac­tur­ing sec­tor. Apart from this, toll is ap­pli­ca­ble for all the new roads com­ing up in the coun­try. Free move­ments of goods be­tween states are still af­fected due to non-im­ple­men­ta­tion of GST,” he pointed out.

rec­om­men­da­tions for 3Pls and pol­icy mak­ers

Ac­cord­ing to John, the lo­gis­tics ser­vice providers have to grow from the im­age of a “stock­ing and dis­tri­bu­tion agent” to a ful­lyfledged 3PL ser­vice provider with more value to client op­er­a­tions. In ad­di­tion, pol­i­cy­mak­ers have to im­ple­ment GST faster. Also, road in­fra­struc­ture needs more im­prove­ment. Be­cause of poor road in­fra­struc­ture, de­liv­er­ies take much longer time af­fect­ing on time de­liv­er­ies of ma­te­ri­als and longer time to re­cover ROI for ser­vice providers.

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