In order to help Shanghai industrial enterprises better summarize supply chain anti-risk experience and improve supply chain resilience, during the 3rd China (Shanghai) Industrial Products Online Trading Festival, under the guidance of Shanghai Municipal Commission of Economy and Information Technology, Shanghai Industrial Internet Co., Ltd., The 2022 Industrial Digital and Intelligent Transformation Summit jointly organized by Shanghai Yangtze River Delta Industrial Internet Promotion Center and JD.com was held in Shanghai.
The conference invited Liu Xinyu, Director of the Producer Service Industry Division of the Shanghai Economic and Information Commission, Yue Chiyu, Deputy Director, Shan Dongming, Deputy Director of the Information Promotion Division, and nearly 100 representatives from automobiles, electronics, energy, electricity, chips, The relevant persons in charge of procurement and supply chain of key industrial industries such as water affairs, engineering and construction, and transportation conducted in-depth discussions on how to improve the resilience and efficiency of the supply chain under the new environment and adapt to the new environment. At the meeting, the Shanghai Economic and Information Commission issued awards to companies with outstanding performance in related fields. Sinochem Lantian, Oriental Hope, Shanghai Aviation Industry, Nippon Paint and other companies won the “Digital Pioneer Award”, and JD.com won the “Outstanding Contribution Award”.
‘Pioneer’ rethinks supply chain value to respond to new changes with digitization
In the first half of this year, Shanghai enterprises experienced difficult times. A large number of Shanghai industrial enterprises encountered difficulties such as insufficient inventory, limited upstream production capacity, and poor logistics circulation. This not only enables Shanghai industrial enterprises to have a deeper understanding of “supply chain value”, but also makes them think about how to better improve supply chain resilience through digital transformation in the face of a new environment full of uncertainty.
At the scene, Shan Dongming, deputy director of the Information Promotion Division of the Shanghai Municipal Commission of Economy and Information Technology, said that there is no one-size-fits-all path for the digital transformation of the supply chain. In the face of major changes unseen in a century, digital transformation can neither be comprehensive nor one-size-fits-all. It is necessary to focus on the key points, grasp the core, and identify the transformation links. It is necessary to calculate both the technical account and the economic account. Only then can we usher in the spring of our own high-quality development.
Shanghai Eastern Airlines, SAIC Motor, Shanghai Aviation Industry Corporation, Shenergy Group and many other companies also shared their experiences.
Liang Hong, Director of New Project Management of the Purchasing Department of the Passenger Car Company of SAIC Motor Corporation Limited, said that the automobile manufacturing industry has always been known for its refined supply chain management. In the past, we pursued zero inventory and lean production. But in recent years, the management logic of the entire supply chain has changed a lot. We have seen that the epidemic has caused upstream suppliers to be “broken” at any time, causing a continuous impact on the safety of the entire production supply chain. Therefore, we began to put risk control in a higher priority position, and appropriately increase the inventory reserve to take into account some uncertainties, so as to be more calm in the face of emergencies.
Yang Weibing, deputy general manager of Shanghai Eastern Airlines Tendering Consulting Co., Ltd., said that in the process of digitization, special attention should be paid to the problem of information blocking points. In the process of supply chain management, we often need to connect with hundreds of suppliers, and each supplier’s system is independent, which is particularly prone to information islands. How to solve the communication problem between each link and realize the data integrity Circulation and sharing are also critical.
Wan Jianfeng, director of the resource sharing platform of Shanghai Aviation Industry (Group) Co., Ltd., believes that supply chain digitization needs to pay attention to value-added flow on the basis of solving the three streams—logistics, capital flow, and information flow. Why do we set up a logistics center and why we need to build a procurement mall? Before starting action, we must find the value of digital transformation. Only in this way can the digital transformation of the supply chain be smoother.
Xie Weiqing, general manager of Shenergy Group Business Services Co., Ltd., said that the digital transformation of the supply chain also needs to be considered both internally and externally. Externally, it is necessary to consider whether the product performance, supply chain service and delivery capabilities meet the requirements, and internally, it is necessary to focus on the standardization and compliance of processes. Sex, both are indispensable.
Hu Laiwu, Executive President of Shanghai Industrial Internet Co., Ltd. believes that in the current industrial chain, it is still common for companies to fight alone, resulting in relatively high costs and risks and relatively low benefits in the supply chain, which requires a combination of digital tools and ecological services. mode to improve the level of industrial synergy. As the organizer of the Shanghai Industrial Products Trade Festival, it initiated the establishment of the Digital Supply Chain Industry Alliance, and actively built a new service model of “park + platform”, including: building a supply chain optimization service platform, and transferring the advantageous resources of large enterprises to the park through the park Infiltrate to serve the majority of small and medium-sized enterprises; not only improve the service capacity of the park, but also optimize the supply chain ecology of the enterprise.
Jingdong Industry uses “four digitalizations” to serve industrial enterprises to improve supply chain resilience
After clarifying the direction of the transformation and upgrading of the supply chain, how to implement and implement these measures has also become a key topic for the guests at the scene. Ying Junjun, head of supply chain digitalization of Nippon Paint Investment Co., Ltd., shared Nippon Paint’s practice of supply chain digital transformation.
As a multinational paint company that entered the Chinese market earlier, Nippon Paint has more than 70 production and supply chain bases across the country and employs about 11,000 people. Due to the complex organizational structure and wide distribution, in the past, the procurement work of each factory mainly relied on local sources. More importantly, the service capabilities of suppliers in different regions are uneven, making it difficult to unify product specifications, quality and prices.
In order to effectively improve the efficiency of the supply chain, Nippon Paint has carried out digital transformation. After more than a year of exploration, Nippon Paint has achieved “immediate results”. At present, with the support of the digital supply chain, Nippon Paint’s comprehensive procurement costs have been greatly reduced. According to statistics, the annual purchase price cost can be reduced by 5%, and the management cost can be reduced by 2,600 man-hours. Among them, the procurement labor cost can be saved by 1,600 man-hours in the sourcing process, and the supplier pre-invoicing process can save more than 1,000 man-hours.
Behind the reform of Nippon Paint’s supply chain is the full range of technical service support provided by JD.com in product digitization, procurement digitization, contract performance digitization and operation digitization. In terms of commodity digitization, the Mercator standard commodity library that JD.com continues to build can unify the “discourse system” of the industrial chain to solve problems such as confusing product parameters and incomplete industry attributes. Provide exclusive procurement solutions for all enterprises; in terms of digitization of contract performance, JD Industrial’s enterprise distribution center, intelligent mobile warehouse and other infrastructure can effectively ensure the “last mile” delivery quality, improve delivery efficiency, and optimize inventory management; In terms of digitalization, JD.com has supporting services such as intelligent settlement, intelligent customer service, and financial services to ensure the implementation of the supply chain and create a closed loop of digital services.
These digital supply chain service capabilities of JD.com also play a key role. From April 1st to 30th, JD.com has delivered over 6.5 million pieces of materials to more than 600 government and enterprise customers in over 50 industries including energy, automobile manufacturing, electronics manufacturing, and engineering and construction in Shanghai. Thanks to its outstanding performance during the resumption of production in Shanghai, JD.com was also awarded the “Outstanding Contribution Award” by the conference.
Shen Xuejun, general manager of JD Industrial East China, said: JD Industrial is deeply involved in the recovery process of the industrial economy. In the future, JD.com will continue to take advantage of JD.com’s “responsible supply chain”, cooperate with Shanghai industrial enterprises, deeply explore the digital application scenarios of industrial supply chain, improve the endogenous power of supply chain upgrade, and help Shanghai enterprises to better revitalize industrial resources and improve supply chain resilience and efficiency.