Haier LES Secondary Physical Distribution System Promotion



Project Overview

Based on the divisions of business flow, logistics and production, Haier has established a large physical distribution system consisting of 6 primary logistics base and 42 secondary physical distribution centers. Before implementing R/3 system, Haier has applied management software in logistics business for years, which has laid a powerful foundation for management and data preparation. Since January 2003, we have started the promotion of SAP LES Secondary Logistics System covering SD, MM and logistics execution system (LES) across the 42 logistics centers of Haier. After 4 months of efforts, the implementation tasks for the 42 secondary logistics centers were accomplished in May 2003. As a result, all logistics systems of Haier are now under the control of the R/3 system.

Implementation Scope

SD, MM and LES


By leveraging the JIT speed, high-quality network resources and information platforms, Haier Logistics has aggressively expanded socialized logistics business and implemented LES Logistics System while improving internal business operation in order to build an efficient supply chain system for users and develop the competitiveness of Haier Logistics service.

Results: Haier has integrated an excellent LES through information and successfully built system architecture for logistics operation and management of third parties to manage basic business processing systems including order management, barcode scanning, GPS traffic management and warehouse management of the 42 logistics distribution centers. Real-time data acquisition, transparent tracing, barcode scanning, cost management and decision-making support enable the application of advanced technologies such as warehouse control for customers in different areas, secure inventory settings, and automatic replenishment alarms to build an efficient third-party logistics operation platform.

  • LES helps increase the speed of response to customers and conduct real-time distribution by integrating traffic management, warehouse management and order management.
  • Resource management: Reduce logistics costs through unified resource management and allocation.
  • Order management: Increase the speed of order response through order synchronization and sharing.
  • Traffic management: Perform control of distribution and shipping systems and transportation inventory.
  • Warehouse management: Accomplish inventory information sharing, real-time inquiring and inventory alarm through system implementation.
  • KPI analysis: Acquire the KPIs of logistics stations automatically forimproved efficiency.


Neusoft SAP R/3-based Solution for the Electronics Industry