Analysis: Household Appliance Industry Center Daily News highlighted the company "remove barriers and effect" - appliances, household applia

GOME has released semi-annual report of 2007, revenue grew 73.9%, profit up 106.47%. U.S. strategic partner while China is also substantial growth in the medium-term performance: profit increase of nearly 40% of Haier, Changhong is expected to increase 50%, beauty is expected to exceed 100%.

A rare phenomenon, whether appliances or appliance retail operating costs of manufacturing enterprises have suffered different rate of decline in the proportion of commercial and industrial stocks also declined. Chinese home appliance industry has entered a revenue, high profit growth, stock, good running costs low growth areas.

I think that the fact that "two high and two low" situation is not the real motive chain network expansion, but the country to promote the removal of the United States between circulation and supply the "flow for the wall" results. I expect this "removing unnecessary movement" will lead to healthy growth in home appliances industry, the industry will also expand the optimization surface.

The first half of 2007, States United States to promote Haier, Sony, United States, the Panasonic 350 large and medium core suppliers and their ERP system to achieve the docking, the first time in history to achieve the Chinese distribution companies and suppliers free wall of interaction, the flow of information between manufacturers, logistics, capital flow to achieve a smooth flow of interaction, supporting China's home appliance industry, manufacturing, retail supply chain to achieve the first seamless docking. Manufacturers access to accurate demand information, demand information in an accurate under the guidance of the precise manufacturing of the manufacturing plan, purchasing and more scientific and rational, the result is to make the whole supply chain operations were an accurate guide, the original production suppliers and distribution companies in the conjunction of the stock began in the history of a significant reduction, which is revolutionary in terms of China's home appliance industry, the gospel.

From the mid-90s to the present time more than 10 years, China's home appliance industry with a widely circulated prophecy: appliance manufacturing scale of production of 100 billion when wounded or dead. This is actually a home appliance manufacturer a true portrayal of growing, manufacturing enterprises are starting to think that 10 billion fate after its hard to grow, production scale manufacturing enterprises to become the fate of the curse.

I think that this is not a spell, the curse is found to be subjective and Chinese home appliance industry, inefficient distribution and circulation of inaccurate inventory caused by a disaster. Network in the States United States such a large-scale circulation enterprises across the country before the birth, household appliances manufacturers by thousands of small non-chain distribution companies sell their products. When companies reach a certain level scale, it corresponds to the number of distribution companies will increase significantly, when the distribution companies greatly increased the number of groups, the mean number of incorrect orders will increase significantly, thus increasing the potential for producing a large number of stocks , a large number of stocks is the direct result of loss, the national inventory hedging losses and profit after selling real sure it is a low profit or loss.

Huge losses in turn, allow manufacturers to stay in their own context can control the size of stagnating. In this flow constraints, the entire manufacturing operations around the real focus of not to consumer demand, product development, market development, but the same team as the mouse in full control "inventory of the rat", the result is the industry's progress limited, and manufacturers have been suffering in a constant process of stagflation. In the United States as the country after the birth of this chain, suppliers, the product flow of the pain and resentment out on chains are involved, this is the so-called contradiction between supply and chain, which is in fact a misconception.

Beauty and suppliers in the country did not achieve information before docking, the Chinese home appliance industry has been in a stage of worry for the stock. Because there is no accurate demand information the supplier has been in a product with too many orders to wait for the state, because the intense competition among suppliers and the planned economy era, with the product to "touch order," the existence of habit, each months after the end of season sale of products will naturally not into stocks, because each enterprise will have a huge inventory, so the industry's inventory to be swallowed huge profits tumor. History of air conditioning and color TV industry in China stocks have more than 1000 million units, this is the harvest of these industries are not the reasons for high yield.

Product of technological change and the decline in value in the speed of the case, profits were already very thin in the appliance case, plus has been eradicated can not afford to stock losses, the profits of China's home appliance industry is actually offset by stock losses residue after the leftovers. In the United States removed the country with suppliers "wall", the entire appliance plate operating results immediately proved the correctness of the information campaign and the powerful forces of supply chain optimization.

I am an expert from chinasteelstructures.com, while we provides the quality product, such as Prefab Building manufacturer , Spatial Grid Structure, china steel structures,and more.