The challenge
- Midea is a Chinese household appliance manufacturer and is now one of the top 5 manufacturers worldwide.
- Low profit margins require cost reduction initiatives. Increases in sales and shipping volume have added stress to logistics, including warehousing.
- The goal is to reduce damage, caused by abundant manual handling, and improve effectiveness and performance of package designs.
The solution
- Midea uses SAVER 3X90s to characterize Chinese distribution and created an archive of dynamic and environmental transport data (Field-to-Lab®).
- Data collected so far has allowed them to optimize warehouse, storage, and distribution processes.
- Field data is also being used to establish product fragility criteria and design packaging to protect those elements.
- Implementation of solutions to date has resulted in over $1.2 million savings per year.
