Analyzing the success factors of Xiaomi's cell phone from inventory control

Xiaomi cell phone users place orders through the Internet to obtain market demand, and then through the supply chain to purchase components, such as screen from Sharp, chips from Qualcomm, cameras from Sony, and then other non-critical components through other manufacturers. Then the phone assembly is done by two companies, Foxconn and Inventec, to complete the production. Molds are OEM from Foxconn, assembly is OEM from INVISTA. In this way, the "zero inventory" of raw materials is realized.

The production model of Xiaomi's cell phone is called "PC-like production", which is a kind of "on-demand customization" production model. Xiaomi cell phone users through the network order, get the market demand, and then through the supply chain procurement of components, such as procurement of screen from Sharp, procurement of chips from Qualcomm, procurement of cameras from Sony, and then through other manufacturers to purchase other non-critical components.

In the distribution center, first the orders sent by users will be classified according to different contents, and orders with the same contents will be lined up for printing. In groups of 40, they are checked and bound. Subsequently, these 40 as a group of orders, was sent to the sorting link of the hands of the staff they will push a cart, according to the order information, in the Xiaomi cell phone warehouse, pick out all the accessories required for this batch of orders. After the distribution is completed, is the order will be equipped with the required product packages, weighing and labeling of express orders, converted into a piece of packaged shipments, sent to buyers across the country hands.