Welcome. Here we will introduce you to the details of our cost control measures.
We are an ISO9001 and ISO14001 certified water dispenser, water purifier, and water treatment equipment manufacturer, based in China. To better serve our clients, we take effective actions to reduce our costs and thus provide the highest quality products available, at very competitive prices.
1. Cost control
a) We purchase materials in bulk, which lowers our cost, and we continually seek out even better material suppliers. We also strive to discover better alternatives to traditional materials, to ensure the most advanced, effective products, while not compromising on quality.
b) We optimize the structure of our supply chain and assist our core suppliers to improve their management, so as to ensure raw materials are qualified and sufficient. Thus, we can effectively avoid productivity impairment caused by unqualified materials or material shortage.
c) Our inventory is monitored every month so we can effectively reduce stock materials and reduce unqualified materials.
d) We make suppliers profitable to create a win-win situation.
2. Cost saving through research and production processes.
a) We use new, innovative types of materials to replace traditional ones. For instance, we use ABS 3513, and ABS 8391 to replace ABS 121H, use HIPS to replace ABS, and use PP 500N to replace EPC30. This enables us to reduce key component production cost by 5% or more.
b) We use standardized production to lower our expenses.
c) We reduce the use of excess parts and materials
d) We use a simplifed, modularized design. Thus, our modular body cover, makes production and assembly simplified.
e) We make breakthroughs in water dispensing technology, in fact, all of our digital control systems are developed in-house.
3. Saving cost through production in house
Over the years, our production cost has been reduced by 1.03% through production in house.
a) Manufacturing drinking water equipment components in house
Currently, all standard, small sized hot water tanks required in Midea water dispenser, water purifier and water cooler, we produce ourselves. The mold of standard, large sized hot water tanks is in the making.
Through these efforts, our product cost for water tanks is reduced by 43,000 USD each year.
In addition, we have injection molding machines which manufacture the main bodies of Midea water treatment equipment.
4. Labor cost reduction
a) Improving the automation level of production equipment
(1) Streamlined production effectively improves production efficiency.
(2) Highly automated production facilities are used to reduce labor and improve production efficiency.
b) Improving production procedure management
Through reducing excessive production procedures, we are able to effectively reduce the number of staff necessary for production.
c) IE ECRS
We make constant efforts to simplify the structure of our Midea water dispensers, water purifiers, etc., thus reducing production steps and reducing laborers.
d) Monthly report
Midea staff is required to provide a monthly report of their work. This is an effective way to improve workers' efficiency.
5. Other cost control methods
a) We execute precise plans of our annual and monthly production, in order to ensure full use of all resources.
b) The purchasing of materials and components is strictly controlled. Thus, we reduce material waste.
c) The expenses of water, electricity and gas are directly tied to the salary of team directors, so as to encourage energy efficiency.
d) Each workshop has a Production Cost Management System and gives an analysis of their production cost.
e) Daily equipment maintenance is required for our facilities. Thus, we can reduce expenses for equipment maintenance.