SAVERs save $12,000,000 for Midea!
Midea is a renowned Chinese global producer of household appliances that has undergone substantial growth in the last decade. The rapid growth has lead to some unusual challenges associated with the distribution of their products. In some geographic regions they supply, it’s not unusual for most of the distribution chain to utilize manual handling (as compared to forklifts or automated systems). Because these products are large & heavy, manual handling puts them at an increased risk for accidental damage.
Midea realized they needed to better understand of their distribution environments to reduce distribution damage claims and improve customer satisfaction.
With a fleet of Lansmont SAVER field instruments, they set out on a project to aggressively measure their distribution environment. Products were outfitted with SAVERs and sent through the distribution channels to endpoints in a variety of regions. The data was analyzed and summarized to provide a comprehensive geographical map associated with the severities in each region.
training and education programs to stress the importance of careful handling.
They continue to update the data and monitor shipments to drive their packaged-product laboratory testing.
Since implementing the new and improved laboratory testing methods, a number of structural design improvements have been implemented for various products. These improvements have increased the strength and reduced the cost of their products, and reduces their dependence on protective packaging materials during shipment.
After the first year of this initiative, Midea reported a 40% reduction in damage claims and $12,000,000 in related savings. Midea has also experienced significant improvements in reported customer satisfaction.