The road of digital transformation of industrial manufacturing: puzzle, solution and break

2021-02-25 14:50 0

It was the best of times, it was the worst of times.

According to the World Economic Forum Report 2020, over the past three years, about 47% of digitally transformed competitive companies have achieved organic growth of more than 10%, while only 30% of traditional businesses have achieved the same feat, and a digital divide has formed. Faced with the restricted production and sales mode, the rapidly changing supply chain and the "winter" of the traditional market, enterprises are bound to face the breakthrough of accelerating transformation and upgrading. In the post-epidemic era, digital operation ability has become the most basic survival ability of many enterprises.

With the increasingly mature transformation support technologies such as artificial intelligence, cloud computing and industrial Internet in China, the awareness of transformation of manufacturing enterprises is also gradually enhanced, which has changed from passive to active transformation. According to the 2019-2020 CIO Digital Transformation Questionnaire Survey conducted by e-works, an authoritative media in China's manufacturing industry, on nearly 600 manufacturing enterprises, the value of digital transformation has been widely recognized by enterprises, with strong internal driving force and unabated investment enthusiasm, and the transformation of manufacturing mode and operation mode is the main direction of enterprise digital transformation. Smart factories and industrial Internet are the focus of enterprise construction. As the foundation of the nation, industrial manufacturing has an independent and complete industrial system and a whole range of industrial categories, with obvious advantages in industrial scale and supporting facilities, and strong resilience in the industrial chain and supply chain. But at the same time, the industrial chain and supply chain still have problems of weak foundation and low level, and some basic products and technologies are highly dependent on foreign countries, and there are problems of "choke" risk in key links. In view of this, the state has introduced a series of industrial supply chain development policies in recent years. It has been proposed in the 14th Five-Year Plan "Suggestions" to promote the upgrading of industrial base and modernization of industrial chain, and gradually enhance the autonomous and controllable ability of industrial chain and supply chain.

  Puzzle: The "Pain" and "Pass" of Manufacturing Transformation

Digital transformation is like Hamlet. Many experts have said different things. One thousand people have one thousand understandings. For a scientific and technological innovation enterprise, how to combine the technical ability with the accumulation of traditional manufacturing enterprises, to provide the most correct method and path of digital transformation, has become the key.

In the past few years, Sugigu Technology has constantly summarized the experience in the process of industrial upgrading. Currently, the traditional manufacturing industry is generally faced with four typical challenges: first, it is difficult to predict the industry and understand the volatility of market demand; Second, it is difficult to inherit core technology. On the one hand, it relies on manual labor to do various production/sales plans; on the other hand, unreasonable results given by existing software need to be adjusted manually, which causes the bottleneck of technology inheritance. Third, the transformation effect is poor, and it is difficult to optimize the order satisfaction rate, production cost and storage cost. Fourth, the strain is slow, demand end and capacity end change, order insertion, transfer of production and other operational problems, difficult to strain.

In order to change "pain" into "ease", enterprises must also consider some key demands when applying transformation solutions, such as "visibility", which requires that the resource allocation at any space-time node be clearly visible, so that more complete information can be used for decision-making. "Flexibility" requires insight into all the resources available and secured to generate more potentially actionable decisions; "Agility", gaining the ability to allocate and utilize existing resources so that decisions can be made more quickly, and so on. It can also be said that enterprises need more complete information to make decisions and have more potentially actionable decisions to make judgments more quickly.

  Game Breaking: Shan Shuyi ™ is designed for full link production and marketing collaboration

Xiao Yaqing, minister of Industry and Information Technology, pointed out how to solve the problems in the industrial chain and supply chain, focusing on the weak links in the industry, strengthening the key core technologies, increasing the supply of industrial generic technologies, and accelerating the transformation and industrialization of scientific and technological achievements. At the same time, we will accelerate the deep integration of next-generation information technology and manufacturing, build an emerging industrial chain, focus on areas of industrial strength, and foster a number of advanced manufacturing clusters.

As a practice in the field of artificial intelligence decision optimization, Sanshu Technology has been deeply engaged in industrial manufacturing, and has exported its complete technical capabilities and platform solutions modularized to provide manufacturing enterprises with a new generation of industrial intelligent decision solutions -- Sanshu Shuyi ™ product solution platform. With big data as the base, data center and decision center as the support, and COPT, the first self-developed large-scale mathematical planning solver in China, as the technology engine, Shan Shuiwei ™ creates deeply integrated intelligent decision solutions in the manufacturing industry, providing customers with intelligent production, intelligent logistics, intelligent sales, intelligent response, global insight and other business products and applications. It helps solve the optimization problems of the full-link and full-dimension business scenarios from demand plan, production plan, delivery plan to logistics plan. At the same time, production and marketing coordination and simulation, real-time simulation computing assist industrial manufacturing enterprises to balance decision planning, empower enterprise operation decision with intuitive target display, and provide service support for enterprise multi-business scenarios.

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  Sales planning intelligent solution -- integration of internal and external data to achieve scientific demand forecast

Demand forecasting is very complicated. When making sales plans, enterprises need to integrate internal and external resources to make unified planning, covering internal sales plans, their own capacity and pricing, external market trends, friends pricing, etc., so as to avoid blindly following last year's plans or past experiences.

Based on algorithm model and business rules, Sanshu intelligent sales planning scheme integrates internal and external data to provide targeted sales planning system spanning product life cycle and covering all online and offline channels for different scenarios. It provides enterprises with sales forecasting schemes that can quickly capture market fluctuations, create refined pricing schemes, and decompose the impact of promotional activities on product sales. Recommend product mix and price for clearance to maximize profit while clearing inventory.

  Intelligent program of production planning -- introducing arithmetic engine to solve the problem of production and marketing coordination

Production plan as a continuation of sales plan, to achieve the rationalization of production and marketing coordination. In the past few years, some companies have been excessively pursuing zero inventory, which has made the industrial production line too tight and lack of flexibility, resulting in the loss of many high-quality orders. Rather than relying on manual experience, companies need a set of quantitative tools to balance inventory and capacity, combine production capacity to maximise sales targets, make better use of inventory and draw on suppliers' stock.

Based on the arithmetic engine established by the latest artificial intelligence and operation optimization algorithm, and combined with specific business processes and rules, Sanshu intelligent production planning program helps enterprises realize the comprehensive improvement of top-down and whole-chain management ability and execution efficiency in the production process.

  Intelligent solution of delivery plan -- customized intelligent logistics to improve delivery level

Enterprises to complete the overall delivery, need to have a strong logistics network and supporting storage facilities. The supply chain network becomes more and more complex due to the change of distribution mode and the improvement of consumers' response time to service, as well as the emergence and popularization of advance warehouse and city warehouse.

By means of quantitative model, combined with production capacity, raw material supply, storage and overall transportation rhythm, the intelligent plan of SAN Shu delivery plan helps enterprises realize automatic replenishment of all categories, inventory simulation and dynamic safety inventory, so as to improve inventory turnover, reduce capital occupation and material loss of stagnant materials, and improve order fulfillment rate and delivery level.

  Solution: A good scheme can stand the temper of business

The sub-sectors of manufacturing industry are very different, but some application scenarios are similar. When choosing the mode and path of digital transformation, we need to choose the appropriate pace and way according to local conditions to promote it, so that our own digital transformation can keep up with the pace of enterprise development.

In the manufacturing industry, Sanshuyi ™ intelligent decision solutions have been implemented in many fields, including leading enterprises such as Liu Kuo Chemical, Haier, Foxconn, SAIC GM, etc. :

In recent years, through the construction of ERP and SMS system, Six States Chemical is a physical chemical enterprise. With a certain digital foundation, it has realized the integration of production, marketing and financial business. However, the supply chain plan still needs to be completed manually offline. During the execution of the plan, due to the low accuracy of sales estimate by salespeople, the phenomenon of filling and inserting orders often occurs in production, which makes the implementation of the production plan and real-time tracking difficult.

After the cooperation with Sanshu Technology, Six Countries Chemical Industry has built a set of intelligent decision-making system for production and marketing coordination, which is connected with the existing business system, and fully realizes optimization objectives such as data connection of production and marketing chain, intelligent algorithm assistance, real-time simulation of production and marketing coordination, and improves the scientific level of decision-making. Ma Jian, general manager of Six Countries Chemical Co., LTD., said, "The sales time of fertilizers has been shortened from one month to one week, and from door-to-door sales in the past to strong sales, to meet customers' needs faster and more efficiently."

It is clear that the cooperation between the two parties has refined and upgraded the supply chain management capability of Six Countries Chemical Industry. While realizing the refined operation management of production, inventory, sales and market demand, it has also significantly reduced the cost of production, storage and transportation, thus escorting the digital transformation and upgrading of Six Countries Chemical Industry.

The other is a leading enterprise in the electronics industry. For a long time, it is faced with a series of supply chain problems, such as large number of subordinate factories, scattered distribution and self-fighting, high inventory of semi-finished products, limited production of material inventory, and the OTD time must be compressed to improve order delivery efficiency. In the multi-factory coordinated production scheduling engine launched by the company, Shigosu Technology re-established a reasonable supply chain network for the company through the multi-factory production scheduling scheme. Through the steady rolling of production plan and the prediction of demand changes, it realized efficient cooperation among various factories, and successfully solved the situation of low automatic order supply and release ratio and excessive automatic order supply and release adjustment. The order satisfaction rate of the enterprise increased by 20%, and the overall capacity loss rate decreased by 30%.

China is becoming the world's largest consumer market and the only country in the world with all the United Nations industrial subcategories. Being on the same land, China has enough confidence to develop the internal cycle of its economy, and also adds impetus to the emergence of the fastest and most disruptive innovation and results.

As Minister Xiao Yaqing said, the government supports large enterprises to become stronger and better, supports the creation of a number of "specialized and innovative" small giants and individual champions in the manufacturing industry, and promotes the integrated development of large, small and medium-sized enterprises. As a high-tech enterprise, Sanshu Technology will, as always, focus on the independent research and development and industrial application of artificial intelligence decision optimization technology, and use technological innovation to help the digital transformation of industrial manufacturing enterprises, promote industrial upgrading, so as to contribute a driving force for the integration of digital economy and real economy and social development.

Source: Corporate press release
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