[Real Stuff]Deep Analysis of Development Trend for B2B Global Manufacturing Supply Chain
In 2019, it is a year of "turbulence" in the global industrial chain. Not only did this happen between China and the United States, but even Japan and South Korea also had such tit-for-tat games.
The U.S. Department of Commerce has issued a "ban" on Huawei on May 15 this year. Huawei and its 70 subsidiaries have been placed on the "Entity Control List". It makes necessary for U.S. enterprises to obtain permission before selling products to these companies. Although the U.S. Department of Commerce announced in the official website of on May 20 that it would give Huawei and its partners a 90-day temporary license, but it was not still seen for the intention to "Untie" Huawei.
On July 1, Japan announced that it would step up efforts to restrict the export of three core cutting-edge materials to South Korea and formally restricted the export of related products to South Korea on the 4th this month.
It will undoubtedly deal a "fatal" blow to China and South Korea's semiconductor industry. Because there is a weakness for an industry with a mature and tight global division of labor, such as semiconductor, that is, raw materials are extremely dependent on the international market, especially on the supply of the US and Japan.
Self-help is imminent for them now. On the one hand, localization is needed; and on the other hand, single materials or a few key materials are not allowed to be held in the hands of specific countries or manufacturers, thus minimizing the risk of "trade strike".
Therefore, judging from the development of the trend, it is being broken for the stable one-way industrial chain in the past few decades.
Changing Global Supply Chain Management
With the changes in the global industrial chain and the advent of Internet, the possible links of a commodity supply chain include local factory production, overseas production in multiple factories, and finally procurement in multiple countries around the world. What is needed is the management and service capability of brand-new global supply chain.
In other words, in the global industrial chain, a core component in the future will contain multiple core enterprises, and they may be distributed in multiple countries. In the meanwhile, the raw materials needed by these core enterprises also need to be purchased in many countries around the world.
This can also be considered as an embodiment of the evolution and upgrading of supply chain management from line to plane.
In the supply chain management for the traditional "Chain", because of the too many participants in multinational enterprises, each link becomes too trivial and scattered, so the fault is serious, and the visibility of the whole chain is very low, resulting in the serious bullwhip effect (time/ inventory/ personnel) and the increase of operating cost.
It is found that there are still quite a number of multinational enterprises that do not know who their suppliers are at all levels and where their sources and downstream are. The risk brought by the above is that it is difficult for enterprises to monitor the operation and implementation of different suppliers in their supply chain.
In 2011, it is reported that a Japanese global semiconductor giant tried to understand its vulnerability to the third and fourth layers of supply chains. A team of hundreds of senior executives spent more than a year figuring out which companies were in its extended supplier network.
Therefore, along with the transformation and development of manufacturing industry, it will become urgent problems for breaking the information isolated island and realizing the interconnection between manufacturing enterprises to be solved at home and even in the world.
On January 29 this year, JUSDA, who received round A financing of 2.4 billion yuan (the largest single financing in supply chain logistics), stressed that "We will continue to increase investment in globalization and other areas. In the meanwhile, we here officially propose that a new layout of Manufacturing Digital SCM (hereinafter referred to as MDS) is being developed. Through digital-driven intelligent collaborative supply chain solutions, enterprises can be helped to shorten the supply chain links, reduce the total cost of the supply chain, and change the traditional manufacturing supply chain from single-line links of enterprises on a single chain to networked, multi-level and all-round links. "
In view of the two major features of "Digital Drive" and "Collaborative Sharing", JUSDA is to connect multiple participants of different industries active in the B2B supply chain through the same platform, and to provide visualization, collaboration and digitization for them through AI, big data, IoT and other new technologies, so as to realize seamless linking and dynamic visualization of collaboration and information transmission of different roles, reduce inventory and fluctuation.
In the future, we can see that the management of a manufacturing supply chain will continue to expand the scope of services and improve the technological content from pure manufacturing supply chain to digital manufacturing supply chain and then to future industrial digital supply chain.
The Attack of Chinese Supply Chain Enterprises
In the global industrial system, there have been three generations under the leadership of the United States. From Germany and Japan to Southeast Asian countries represented by the four little dragons of Asia, and then to China, it has become the third-generation producer in the global division of labor system led by the United States.
In the past 20 years, China has mainly exported low-value-added personal consumer goods to the world. In the future, it will focus on breaking through high-end manufacturing and high-tech industries, and intelligent manufacturing will become a new direction for industrial upgrading.
Under such a background, we can see that the three major economies of the United States, Germany and Japan have given birth to world-class global supply chain giants such as UPS, FedEx and DHL, etc. As the second largest economy in the world, driven by the new industrial era and digital technology, it can be expected that China will have more than one world-class global supply chain giant in the future.
A new global supply chain cannot be separated from a globalized network. For B2B large manufacturing enterprises, the supply chain logistics has a globalized market. From the global procurement of raw materials to the external output of finished products produced in factories in many countries, the support and coordination of global network resources are indispensable in every link of the end-to-end supply chain. The coverage of the network can not only determine the volume and income, but also have a greater impact on the coverage and timeliness of services.
With the deepening development of economic globalization, the highly integrated industrial chain and supply chain system have connected the world economy. This is why the global supply chain system is greatly affected by policies and situations. The protracted Sino-US trade friction has also changed the global supply chain pattern. For this, it has been significantly released for the JUSDA’s capacity of full-process supply chain service accumulated for large multinational enterprises for many years. With its 155 bases in the United States, Japan, South Korea, Vietnam, India, Southeast Asia, Europe and other countries, as well as its global network resources and strong resource integration capability, it can cope with the continuously dynamically reorganized global supply chain network with flexible supply chain full-link management.
Taking Vietnam as an example, due to its advantageous geographical location and demographic dividend, it has attracted world-class enterprises such as Intel, Samsung, Coca-Cola, Pepsi-Cola, P&G and Nestle to set up factories in Vietnam. It is precisely because of the blessing of more and more world-class factories that the demand for professional integrated international logistics services in Vietnam will increase in the future. Moreover, the service is not only simple transportation, warehousing and customs declaration, but also will extend to the global supply chain management. Undoubtedly, Vietnam will become one of the most important nodes in the globalized supply chain in the future.
It is also the reason of Vietnam's unique location advantage that JUSDA has already carried out strategic layout in Vietnam. Taking Vietnam as a link, JUSDA has helped manufacturing enterprises to open up the One Belt One Road major channel from Vietnam across China to Europe to the north, to provide comprehensive services for foreign trade in the supply chain of the ASEAN Free Trade Area from China to Southeast Asia via Vietnam to the west, and to radiate the transportation network of air, sea and land railways to the United States, Mexico, India and other countries. While providing supply chain logistics for these multinational manufacturing enterprises, reverse logistics and comprehensive customs services are also Vietnam JUSDA's most prominent advantages. Therefore, Vietnam JUSDA is "the local supply chain logistics company that knows most about China."
But JUSDA is different from traditional logistics enterprises. On the basis of building a global network stronghold, JUSDA has practical experience in integrating manufacturing chain into distribution chain. It is one of the few end-to-end supply chain management service-oriented enterprises with a global network layout, providing customers with a whole-process supply chain integration solution from raw material procurement to factory manufacturing, and then to the end consumption link (C2M2C).
Let's take an example below. This is Sharp's global supply chain management service in Japan, which is also one of the core projects of JUSDA (hereinafter referred to as "SJL"). The business is mainly divided into purchasing logistics, production logistics, sales logistics and recycling logistics.
Sharp’s products have hundreds of kinds of raw materials from dozens of different countries, and these raw materials are needed to be purchased to Japan for processing and production, and then to the end consumption link (C2M2C) of the whole supply chain integration solution.
Sharp's purchase and transportation of raw materials is mainly by sea and air, which is also the main cost item. In less than three years from October 2016 to August 2019, SJL helped Sharp save nearly 2.8 billion yen (190 million Yuan) in costs.
JUSDA plays a coordinating, ordinating and operating role in Sharp's global supply chain management. It participates in Sharp's supply chain planning to top, collaborates with upstream and downstream participants in the supply chain, organizes various resources to bottom, and promotes the efficient operation of all links in the whole supply chain system. It is embodied in the logistics services, and it integrates various logistics service providers to realize the operation and management of procurement/factory entry, on-site, sales and after-sales logistics.
In terms of international air and sea freight, SJL has carried out global bidding through the combination of goods with international well-known enterprises such as Foxconn and Sharp. The combination and scheduling of resources have helped Sharp save nearly 30% of international air and sea freight every year. In addition, in Sharp's entire project, SJL also carried out various warehouse integration and store distribution route optimization for Japan's domestic logistics to help Sharp reduce costs and increase efficiency. "
This year, SJL has also launched a transportation coordination platform system for Sharp. The next step is to connect multiple participants in B2B supply chain that are active in different industries in series to realize digitalization and visualization of the whole process of goods in transit. For a sales company with multiple production bases overseas, this is a new momentum for upgrading and transforming the supply chain of manufacturing enterprises. For example, master the quantity being produced in the factory, the quantity of finished products to be shipped, the quantity of goods already shipped, the quantity of goods ready for customs clearance, the quantity already in the warehouse, etc. This allows Sharp to control the overall inventory situation in real time, and then maximize efficiency by deploying other functional departments. This is a function SJL will realize in the future.
In Sharp's entire project, it is involved in cross-border transportation, VMI warehouse management, supply chain management (planning, procurement, production, sales, etc.), customs, finance and other services. The core of the future is to get through all kinds of services including processing, finance and so on through data, from raw material production and manufacturing to warehouse management, to goods transportation, to after sales, so as to realize digitalization and visualization of the whole process.
Judging from the development of SJL, the core of completing the whole end-to-end service of global supply chain management lies in the global resource capacity (warehouse, car, etc.) and the collaborative platform of data.
On the whole, the global industrial chain is changing, and the subsequent changes in the supply chain platform will definitely not the current logistics system to achieve the upgrade of the cost, efficiency and experience, but rather a platform driven by technology and driven by the cooperation and globalization of the upstream and downstream of the supply chain.