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Household Appliance Solution


Industry Background

The household appliances industry is one of industries which is in the severest competition in China and is geared most drastically to international standards. Its general characteristics include large concentration of industry, specialized production in enormous quantities, new techniques intension, fast product update and highly market-oriented product sales. In such market environment, a variety of household appliances are produced in a small scale while in large assembly.

The household appliances industry in China has developed for more than 20 years, and the market tends to mature. China is regarded as the household appliances manufacturing center of the world. The recombination and integration of the household appliances industry tends to be active, there are more and more sales channels, and the industry competition is severe day by day. Market competition with emphasis on price is changed to competition on new techniques. The mergence of domestic enterprises with foreign enterprises becomes faster. Such a megatrend spurs the household appliances manufacturers to do their best to develop new products, and the development of the intelligent control technology and information technology also offers new opportunities to the household appliances industry.

Industry Characteristics

Very difficult in number management

The material No. management is not easy, because in manual numbering mode, No. is liable to leave out, repeat or fault.

Fast product upgrading and updating

The life cycle is short, engineering change is frequent, and product design change management is difficult.

Fast product market change

Product sales is intensive with season, so sales forecast is difficult.

High planning management requirements

The household appliances materials are always prepared based on prediction because the delivery period of order is short. The key components are prepared in advance based on market prediction because their delivery period is long. The product production period is short, so the requirements on harmonization and cooperation of MP and material plan is very high.

Large number of product orders

It is difficult to clearly grasp the order-related purchase and manufacturing process, therefore the delivery process is liable to delay.

High purchase management risk

The key parts of household appliances products have high price and a ready market, and use a great deal of circulating funds of the enterprises, but their technological updating is fast with high price abatement risk, so they are liable to become slow-moving inventories.

Strict raw materials control

The raw materials of the household appliances industry, the purchase & outsourcing services and vendors are in large quantities, so the purchase price should be controlled and vendors should be appraised reasonably.

Difficult product cost accounting

There are a variety of household appliances products in small batch. They are reworked and repaired frequently, and their cost accounting is time consuming and taxing, and the cost is difficult to correctly count.

Variety of sales transactions

There are a variety of sales transactions with complex sales promotion modes and price policy. The customer credit period and credit line control are executed.

Strict after-sales service management

The household appliances products are widely used in people’sdaily life, and China has forced service requirements on these products. There are after-sales maintenance requirements on the terminal products, and it requires that the Sl. No. and maintenance of the management products are recorded and the original production situation should be tracked according to Sl. No..


The Household Appliances Solution, as an integrative information solution in line with the features of household appliances industry, is abstracted based on the practical experiences of more than 1,000,000customers in our country and in combination with successful application of over a hundred enterprises in this industry. This solution, oriented to management emphases and difficult points of household appliances industry, deeply analyzes the application requirements of this industry, and fully brings the advantages of Kingdee K/3 advanced technology platform and powerful service function into play. This solution emphasizes on business flow optimization to effectively solve confusion and puzzles in the household appliances industry on the principle of rapid configuration, rapid implementation, rapid application and rapid action, so it is the optimal choice of ERP implementation of household appliances enterprises.

Credit Price Management

The K/3 system provides credit indexes including credit line, credit term and credit quantity to formulate a credit policy. This system can customize the sections of sales order, sales delivery and sales billing to implement dual credit control of customers and business representatives. The system can customize credit control degree to provide online password authorization management. This system can customize control time point to perform credit alarm. In addition, the self-defined formula is supported by credit control.
This system provides the material sales price, basic price, diverse special offer schemes. It implements pricing by customer, customer category, business representative, business representative category and combination of VIP group + material group. It sets the price and discount by auxiliary property, UoM, currency, quantity segment and amount field. It supports cycle setting to perform management of validity of price, price limit management, priority management and sales permission management.

Purchase Management

The Household Appliances Solution integrates functions of purchase request, purchase order management, imported material inspection, material receipt, purchase settlement, vendor management, purchase price and supply information management. It ensures the enterprise profit through purchase with the price advantage to implement dual control and trace of logistics and capital flow as well as perfect enterprise material supply information management.
The K/3 system provides a series of functions including vendor supply information, vendor price management, vendor quota management and vendor evaluation to help the enterprises build a uniform vendor management platform, thus managing the enterprises at the aspects of quality, price, delivery period, rate of delivery on time and service level as well as optimizing the enterprise material supply environment.

Planning Management

The planning management system provides the powerful material plan functions and integrated alternative material solutions. Its abundant plan parameters meet combined application requirements of household appliances enterprises in multiple plan modes, thus controlling the inventory investment level of enterprises from the source of plan.
The average forecast & offset, scheme settings and MPS calculation of customer orders and sales forecast are combined with confirmation & release, alternative material and suggestion on plan adjustment of planned orders to compile the MPS of enterprises. The MRP takes the MPS as the source and splits the requirements into sub-level materials to compile the enterprise purchase plan and manufacturing plan.


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