Abstract
Changhong is a representative Chinese home appliance enterprise; it succeeded in transforming from the former state-run military-radar factory into one of China's leading consumer-electronics manufacturer. However it has been experiencing setbacks since 1998 and reported significant losses in 2004. This paper reports Changhong's problems and recent efforts in implementing logistical system. It shows Changhong is trying to use logistics and supply chain management side by side as competitive business weapons. And it concluded that the logistical system reform acts as a lever for Changhong's transformation.
