A Research On The Operation Strategy For MD M-Smart Products Supply Chain

Household appliances(HA) industry is part of Chinese traditional industries. Many HA enterprises gain lucrative profit and developed to be world's important enterprises during these years. But the profit margin become lower due to the growth of competitor,increase of human cost, added restrictions on real estate transaction, cancellation of the subsidy policy, the deterioration of international economy and the consumer's persistent pursuit of high quality, personalized and intelligent products. For sustainable development,many HA enterprises have cooperated with IT enterprises to transform into Smart Home System producer, in this way, the enterprises take advantages of product and technology innovation instead of conventional low cost advantage, so outdated supply chain operation strategy(SCOS) need to be renovated in urgent times. It should be renewed by the new products, requirement and partner joining. Renovation of SCOS is the key step of HA industry transformation, researching of the strategy is a vital problem needs to be settled.This thesis is based on the case of one Chinese biggest HA company MD GROUP, on the side of supply chain management to research risk management in operation and how to avoid the bullwhip effect. First, summarizing the status of HA enterprises and Smart Home in China, with the problems of current HA supply chain by analyzing features of HA supply chain and Smart Home. Then, took the motivational factor of MD team up with XM and JD in 2014 as the object of study, trying on how HA enterprises and IT companies to better learn and corporate with each other and achieve a strategic partnership, as well as explore a better way to develop the Smart Home. Afterwards, by analyzing the advantages and disadvantages of partner, providing supply chain operation strategy suggestions for MD GROUP cooperating with IT companies in the eye of risk management in the supply chain and how to avoid Bullwhip effect. At the end, pointed out that only by accelerating the completion of the aggressive restructuring and improve the supply chain management capacity as well as the core competitiveness can HA industry soar again.