Zhejiang New Oriental: All for Customers
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| Exhibition Info
Exhibition Name: Zhejiang New Oriental: All for Customers
| Exhibition introduction
In 2007, the release of National Hot-Dip Galvanizing Inspection Standard filled in the blank of domestic fastener inspection standard. This standard was made by Zhejiang New Oriental Company's Technological Innovation and Service Base of China National Quality Supervision Test Center for Fastener Products. The base also solved these problems: heat treatment of high-strength shanks affects go/no go gauge, and high-performance nuts are distorted after heat treatment .

It is reported that there are two technological innovation and service bases of China National Quality Supervision Test Center for Fastener Products in China. One of them was located in Zhejiang New Oriental Fastener Co., Ltd. in 2006. Zhejiang New Oriental (formally Haiyan County Eastern Fasteners Co., Ltd.), founded in 1985, is situated in Hangzhou Bay Bridge New Area of Haiyan Economic Development Zone.

During its first ten years, Haiyan County Eastern Fasteners operated in a form of family workshops. Although there was only about 20 more workers and several wood screw machines, the company had great demand on product quality, with an annual production value of over 200,000 yuan. This number, of course, as if the moon is not seen where the sun shines, makes a sharp contrast with today's annual production value of nearly 300 million yuan. Yet, under the background of planned economy at that time, it had already been an enterprise of reasonable benefits.

In 1995, Haiyan County Eastern Fasteners Co., Ltd. transformed successfully and officially renamed Zhejiang New Oriental Fastener Co., Ltd. The products went diversified. Its main products turned from wood screws to bolts. In order to target European and American markets, New Oriental produced a large volume of middle and top-end fasteners. Therefore, New Oriental was well prepared: Eliminating the old machines and introducing advanced ones. Meanwhile, the company employed another 20-30 people.

Since 2002, Zhejiang New Oriental has run with a good foundation. The area of the plant expanded six times from 10,000 square meters to 60,000 square meters. Nowadays, New Oriental has more than 500 employees, 30% of whom are college and polytechnic school graduates. The annual output of fasteners reaches over 60,000 tons. 98% of the products are for export markets, selling as far as Europe and America. New Oriental is one of the leading fastener enterprises in Haiyan area in whatever aspects, for example, company scale, number of employees, quality of employees, output and sales.

What makes New Oriental transfer from a village enterprise to a leading fastener enterprise in Haiyan area? It is learned that their prices are higher than others even though compared with the same category. But there are still many customers who are willing to buy products from New Oriental. Why is that? Why it can set up inspection standard for national fastener products? With lots of doubts, journalist of China Fastener Info paid a visit to New Oriental and interviewed their Management Director Mr. Geng.

Mr. Geng said, "The development of New Oriental is closely connected with corporate culture. With over 20 years of development, we shape our distinct culture, that is, to realize common benefits for employees, customers and company. We are always in pursuit of customer satisfaction. This is our mission."

Two 100%s + Customer Service Center + ERP System

100% qualified rate of products and 100% satisfaction rate for handling customer complaints are two principles that New Oriental is pursuing. 100% qualified rate of products means 100% qualified products during production, before delivery, and goods arrival. 100% satisfaction rate for handling customer complaints means customer feedbacks can be effectively managed in a prompt manner. New Oriental regularly sends inquiry letters to their customers and potential ones, which allows customers to make requests and give suggestions. Mr. Geng said, "At the beginning of 2007, we sent 167 copies of inquiry letter to our customers. All of them replied our letters and made lots of valuable suggestions for us."

To realize 100% satisfaction rate for handling customer complaints, New Oriental formed a customer complaint center consisted of some employees from sales and quality control departments. Mr. Geng explained that European and American markets had greater demand in product quality these years. Market information cannot be grasped without prompt information from customers. Therefore, customer service specialists from sales department are in charge of collecting customer information and customer service specialists of quality control department are responsible for handling customer complaints on technology and quality. It is good for New Oriental to promptly receive global fastener market information and make progress on product technology through segmenting customer complaints.

In order to communicate with each customer complaint center, New Oriental established a customer complaint handling committee. In 2004, the company spent more than 200,000 yuan introducing ERP system to handle customer information. However, few fastener enterprises in China are equipped with ERP system to guarantee management.

One Good Turn Deserves Another

In New Oriental, even a small screw should be inspected five times before delivery. During the process of material purchase, New Oriental analyzes materials across-the-board. They will determine whether the element contents meet the standards. When arriving at the factory, the materials, firstly, should be annealed. Then they will be tested whether there is any defect in terms of material decarbonization and metallurgical structure. Although the anneal process of materials will be easily neglected, New Oriental attaches great importance to it. Mr. Geng said, "The production process cannot get started until materials are proved." Having been shaped, the screws should have a 100% full check process. In addition, a 100% full check process should be carried out before and after surface treatment, and before goods delivery. In this way, New Oriental can ensure 100% qualified rate when the goods arrive at customers.

Because of New Oriental's 100% responsibility and inspection standard, Technological Innovation and Service Base of China National Quality Supervision Test Center for Fastener Products set up in Zhejiang New Oriental.

Mr. Geng said, "If we find out an inferior product in some lot, we will reject the whole lot and we are never there just to make up the number. Even if it will increase our cost, we have to get 100% satisfaction rate from our customers. We insist on earning our customers' trust even though we suffer losses. If a company wishes to get recognition from customers, it should not only pay attention to company scale, but also focus on many aspects like customer complaint handling, delivery and so on. Before, we give priority to product quality, second, price, and then delivery and customer complaints. However, when the market sales channel keep expanding, various types of factories offer almost the same price for the homogeneous products, so enterprises have to focus more on product quality, delivery and customer complaint handling. It seems that customers less concern for price."

It will be another prosperous year for Zhejiang New Oriental in 2008. In this new year, Zhejiang New Oriental will continue to absorb management talents and carry on the enterprising spirits. We believe, treasuring employees and introducing talents are the constant HR management idea of Zhejiang New Oriental. It is learned that New Oriental will adjust its current product structure in 2008--30% will be common products and the middle and top-end products will take up 70%. Meanwhile, it is expected that the qualified rate at the first check will reach 97% and the production cost will be reduced, striving for an annual production value of 400 million yuan.

Translated by Alice
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