02/14/2008

Rika GmbH

History and Development of JiaShan MEbid Commercial Equipment Co., Ltd.


History
2005/2006 patent applications for a new shopping cart design
Feb 2007 Sourcing of shopping carts from China by MEbid GmbH, Germany
No satisfying supplier found => decision to start own production
Apr 2007 Start of own production in temporary factory. Small scale output to prove general feasibility, costs, technical concepts
First export order: Leroy Merlin
Start of technical development of our patented design
May-Jul 2007 Step by step improvement of quality by replacing sourced parts with own production. Additional export orders: Auchan, OBI
Aug/Sep 2007 First test run of mass production. 5000pcs/month. Only minor technical problems found. Quality safely in line with EN1929.
Oct 2007 Signing of Joint Venture contract for formal establishment of a production co.
Construction of buildings. Investments into machinery, 2 automated electroplating lines, 1 automated powder-coating line.
Nov/Dec 2007 Step by step moving from temporary factory to our own factory in JiaShan.
First samples of patented shopping carts prove feasibility and advantages. Some technical problems remain to be solved.
JiaShan MEbid is admitted to Carrefour internet auction, as well as tenders of other international retailers for supplying in 2008.
Next steps
Jan 2008 New factory will be fully operational with capacity of 10.000pcs / month
Capacity will be raised during the year to 25.000-30.000pcs / month
International patents for our new design registered in Europe, Turkey, USA, Canada, Mexiko, Brazil, Japan, Korea, China, Indonesia, Singapore, Australia, New Zealand.
Feb 2008 Presentation of patented shopping cart (final version ready for sales) on Euroshop

Key points of our patented design:

1. The patent rights cover all major markets of the world.
2. Subject of the patent rights are two related innovations: We fix baskets onto the chassis not at the sides but at the bottom of the basket, allowing baskets of different width to be fixed onto the same chassis. We standardize the position of those fixing points, allowing baskets and chassis to be freely exchanged.
3. We cut down on inventory in production and supply logistics by substantially reducing the number of parts needed to make all sizes of trolleys
4. We reduce shipping costs by reducing nesting space and increasing qty of trolleys per container
5. We avoid damage and noise during nesting by controlled bumping with plastic parts not with steel. This substantially reduces damage to the coating and extends the good lifetime of the product
6. The connection of basket and chassis has a shock-absorbing function as well, allowing shopping carts to run more quiet, smooth and comfortable for the user and the child sitting in the child seat
7. We avoid unpleasant static electricity at the basket by disconnecting any metal contact between chassis and basket, making anti-static castors or handles unnecessary
8. We spend more on quality but safe elsewhere in production, in total not increasing costs of shopping carts production but decreasing costs of logistics and maintenance. These savings benefit the retailer.