The hottest manufacturing industry wants profits f

  • Detail

Manufacturing industry, ask for profits from the supply chain

at the Asia Pacific manufacturing industry seminar held by HP in Shanghai on December 2-4 with the theme of "strengthening cooperation and seizing changing opportunities", the speeches of management consulting experts, famous thinkers and industry experts, HP's manufacturing solutions and customer success case studies made manufacturers in the Asia Pacific region, including China, realize that, The implementation of the supply chain strategy of "dynamic growth" enterprises has laws to follow, and there is also a division of levels. Its new technology, such as the application of RFID, will make the process and results of manufacturing informatization more transparent

five challenges faced by made in China

at present, due to the globalization of manufacturing competition, the Asia Pacific region has become a global manufacturing center. Coupled with the transfer of some large manufacturing enterprises to China, Chinese manufacturing enterprises have also shown the trend of mergers and acquisitions

according to frank, a manufacturing expert from HP, manufacturing in China is generally facing five challenges, the first of which is the challenge brought by global production. Products and production bases have realized mobility and mutual cooperation among countries. Therefore, how to build a good business model to support global production is a big challenge. The second challenge is the collaboration between product design and manufacturing. Generally speaking, as the upstream and downstream division of labor in the manufacturing industry becomes more and more detailed, the completion of a product is likely to be product design in one place, then manufactured in multiple places, and finally sold to multiple markets around the world. Because they are distributed in different places, the cooperation between product design and manufacturing is very critical, so the cooperation between multiple links is a great challenge. The third challenge is that now, the good days when supply and demand are completely matched are gone forever. Basically, all industries have the problem that supply exceeds demand in all tensile test machines. The change is that the original challenge is how to meet demand, and now the problem is how to make demand transfer between regions to meet supply. The fourth challenge is product differentiation, that is, how to make your products different from those of competitors; The fifth challenge is how to better coordinate the design of after-sales service and supply chain to support the company to achieve greater profit margin. The reality is that the most common challenge facing companies is to control costs. As the profit per unit product is getting smaller and smaller, the profit of product sales of many companies is not high. For them, what makes money may be after-sales service. The profit of after-sales service involves the support of supply chain

according to Kumar, an HP consulting expert with 14 years of experience in manufacturing industry solutions, specifically, if we use five levels to describe the level of IT application in the automotive industry, the results of Europe and the United States are five points, occupying the highest fifth level; Considering the different OEM levels in China's automobile manufacturing industry, an average score is two points, that is, the second level

he further explained that enterprises at the second level use ERP solutions and demand management solutions (various application software) in manufacturing. The third tier enterprises use it technology in the production workshop. For example, there may be a centralized design department, which applies it to strengthen the digitization of department level design. Enterprises in the fourth tier are more expanding it technology to supply collaboration, including global and design collaboration. For example, in the automotive industry, the fourth tier enterprises use more remote diagnosis, remote analysis and other technologies, which makes the OEM partners integrate the product manufacturing itself more closely through it. At the top of the application, that is, among the automobile manufacturers in the fifth layer, their automobile products are IT products, and the automobile engine management, audio and video and other entertainment management are also it products. The whole automobile is an IT product. So far, no company in China has reached this level. It will take at least five years for Chinese enterprises to reach the third or fourth tier. This classification method is also suitable for the description of the informatization level of other industries in China

obviously, for the Chinese manufacturing industry at this stage, to create, design and promote a business model oriented by after-sales service to improve profits and establish an efficient supply chain, their investment focus is logistics management - logistics solutions, which has also become an urgent issue

squeeze profits from logistics

the challenge of China's manufacturing industry comes not only from the outside, but also from the inside among controllable factors

According to Kumar's analysis, the cost structure of manufacturing enterprises generally comes from five aspects: labor, materials, logistics, distribution and overall management costs. The particularity of Chinese enterprises is that the labor and overall management costs are relatively low, and what they are most concerned about is the logistics cost. The reduction of this part of the cost has a very obvious contribution to the overall profit. For example, the logistics cost of Haier is a very important part of all its costs, accounting for 25% of the cost of the whole supply chain. Therefore, if the logistics cost is reduced by 5%, the company's profit margin will increase by 1% to 2%. HP solved this problem by providing IT services for them. In the global logistics, such as the transportation between import and export or multi countries of products, I will produce a shorter average fiber length T, which can help save 5% of the transportation cost on average. For multi-point manufacturing, it can also save 5% of the manufacturing cost

according to the survey, many Chinese enterprises in reality have not realized the importance of using it technology to reduce logistics costs, and their level remains in the application of it in traditional administrative management, product and service design and manufacturing

in fact, HP has encountered difficulties in providing logistics solutions to advanced enterprises such as Haier. Hewlett Packard engineers, who used to design Haier's logistics system, said that Haier's logistics system is very complex. It has more than 3000 warehouses, more than 10000 trucks, and more than 30000 delivery points. HP undertook to optimize the whole logistics system and supply chain system of several Haier plants in Qingdao. Each factory and warehouse has its own independent IT systems. The first step HP needs to do is to integrate these systems into a platform - a platform that helps track the way of sensing: the route of truck delivery of pressure converter, and at the same time, it can ensure that the replenishment cost of Haier's goods at the retail point is the lowest

the first difficulty encountered by HP engineers was more or less beyond their imagination - at that time, Haier's understanding of the whole logistics concept was not consistent with that of HP. Moreover, like Haier, most customers in China were unable to accept the concept of "integrated warehouse" (virtual warehouse) at the beginning, and they felt that it was not feasible; Another problem is that in the process of moving goods, there are different codes at different stages - retailers order according to one code, but in the manufacturing process, it becomes another code. There is no unified coding system, causing difficulties and confusion

rfid in the supply chain

although RFID still has some problems such as standard, bandwidth, cost, etc., the enthusiasm of manufacturers for its function is enough to show that RFID will be a revolutionary application in manufacturing and other industries in the future. In the supply of Wal Mart, P & G reduced the error rate of inventory transactions by 8% through the use of RFID technology, bringing a revenue of $500million. In the supply chain of manufacturing industry, the role of RFID in improving management and reducing costs is more obvious

"HP predicts that in the next three years, the global RFID market will reach $1.7 billion to $2.9 billion. HP is a leader in the application of RFID," HP engineers explained, "The reason to pay attention to this technology is that it can improve the visibility of the entire supply chain system. In the past three years, it has been used and studied. RFID has been fully applied in six manufacturing centers and distribution centers of Huipu company, and another 24 factories and centers are under construction. At present, RFID technology centers have been built in Singapore and Taiwan, China province of China in the Asia Pacific region."

from 2004, HP will invest US $150million in the internal operation of RFID, the investment of HP Labs and the investment of the entire consulting and integration business unit. According to Hewlett Packard, Hewlett Packard is studying how to use sensor technology to make RFID develop better, such as the solution of tracking and printing a single commodity. In the future, it can print RFID tags like printing bar codes with a printer, which is a great boost to the implementation of RFID technology. (end)

Copyright © 2011 JIN SHI