For Midea, there are more than 300 relatively stable suppliers, and the total number of spare parts is more than 30,000. At present, the annual inventory turnover rate of Midea's finished air conditio

For Midea, there are more than 300 relatively stable suppliers, and the total number of spare parts is more than 30,000. At present, the annual inventory turnover rate of Midea's finished air conditioners is not only much lower than that of computer manufacturers such as Dell, but also lower than that of Korean manufacturers whose annual turnover rate is greater than 10 times. An increase in the inventory cycle rate can directly save more than 20 million yuan for Midea air conditioners. Thanks to a series of measures taken, considerable profits have been maintained under fierce market competition. Therefore, the scope of cost savings is not limited to within the enterprise, but also cross-organizational cost management beyond enterprise boundaries. Strategic partnerships are established with upstream (suppliers) and downstream (customers) related to the enterprise value chain to reshape the enterprise's cost and Competitive advantage.