Industry | Industrial Internet: The manufacturing industry's response to the epidemic

my country is a big manufacturing country.
Central China represented by Hubei and surrounding provinces gather a number of characteristic manufacturing clusters.
Affected by the epidemic, the manufacturing industry is facing many challenges such as labor shortages, weak demand, and shrinking trade.
In order to be able to cope with the impact, the industry is actively exploring the use of industrial Internet technology to improve the efficiency of epidemic prevention and control, while helping companies accurately connect with customers, realize online collaborative office, improve corporate management and decision-making capabilities, and accelerate the recovery of the manufacturing industry.
The impact of the epidemic on the manufacturing industry The impact of the epidemic on the manufacturing industry is the first.
The shortage of labor, weak offline demand, and shrinking trade have seriously affected the development of the manufacturing industry.
The labor shortage has seriously affected the overall development of the manufacturing industry.
Affected by the quarantine and the state's delayed start of work policies, companies generally face labor shortages and difficulties in resuming work.
For example, the Foxconn factory has postponed all production activities, which is expected to cause Apple's iPhone shipments to drop by about 10% in the first quarter of 2020.
Shanghai Volkswagen announced that 3,500 employees will work from home for two weeks and will be suspended until February 10.
At the same time, in Suzhou, Wuxi and other places, a large number of entrepreneurs have already settled in factories but no workers are employed, and the enterprises have fallen into production stagnation.
Weak offline consumer demand has significantly affected key consumer product areas.
Affected by the epidemic, the whole society has experienced restrictions on residents' activities and isolation of key groups, which directly led to weak offline consumption and severely hit the sales of key consumer goods.
Among them, the industry whose sales model is based on offline experience will be more impacted.
For example, Wal-Mart's 430 stores in China are mainly supplied by domestic factories.
As sales are blocked, upstream companies will suffer severe setbacks.
On the contrary, industries that are less dependent on offline experience requirements are less impacted.
The Strategy Analytics report pointed out that China’s smartphone shipments will be 5% lower than expected due to the epidemic, and China’s smartphone market shipments will decline by more than 30% in the first quarter of this year.
The shrinking trade poses challenges to export-oriented industries.
Export-oriented manufacturing companies are greatly affected by the number of foreign orders.
The epidemic has affected the good start brought about by the end of the Sino-US trade war.
Export-oriented companies have been hindered in the recovery of production capacity, and labor, demand and other reasons have jointly caused trade to shrink.
For example, Hyundai Motor has suspended all production lines in South Korea, including its Ulsan, Jeonju, and Asan plants, and trade in auto parts has fallen sharply.
At the same time, the beef bone meal imported by Sichuan Xinhe Company from New Zealand has been detained in Qingdao Port for 12 days, causing the plant to stall, and it also faces the risk of continuing to pay demurrage fees after the 14-day exemption period.
Second, chain reactions, production fluctuations, supply chain breaks, and capital chain tension continue to affect the development of the manufacturing industry.
The decline in downstream sales has caused a ripple effect in the supply chain, hitting upstream small and medium-sized enterprises severely.
The decline in sales of key consumer products and the shrinking export-oriented economy and trade has led to a decline in the sales of a large number of upstream companies in the supply chain of this type of products, causing a chain reaction.
This transmission effect in the supply chain will have a major impact on the large number of upstream small and medium-sized enterprises.
Blow.
For example, more than 30 factories of Nature Home have been suspended, and more than 5,000 dealers and franchise stores are also in a state of suspension; affected by the downturn in the clothing industry and insufficient production capacity, Qiaotou Button, which accounts for 40% of the national market share, is expected to have a decline in turnover 20%-30%; According to Mysteel statistics, the total inventory of 22 construction steel companies in a southern province reached 1.
375 million tons, an increase of nearly 40% compared to the first week after the Spring Festival in 2019.
Abnormal fluctuations in production affect the sustainable and healthy development of the manufacturing industry.
Insufficient labor, weak demand, shrinking trade, chain reactions and other factors will collectively lead to abnormal fluctuations in manufacturing production.
According to IHS Markit, the equipment utilization rate of China's domestic panel factories will decline by 10-15% in February.
At the same time, industries such as medical supplies and medicine have been positively stimulated.
For example, SAIC-GM-Wuling, Foxconn, BYD and other companies have opened up production lines for medical supplies such as masks.
The potential production capacity of masks in my country is about 20 million per day, and the current start-up volume is about 50%.
The new production capacity lacks strong support from dynamic models and is being carried out on a large scale in various ways.
Supply chain disruption increases the uncertainty of future export trade.
The supply chain rupture will lead to a decline in the supply capacity of my country's manufacturing industry and affect downstream product transactions.
At the same time, it will also stimulate the return of manufacturing industries in developed countries, weakening or replacing the advantages of my country's manufacturing supply chain.
For example, the Bosch Group issued an early warning against my country’s manufacturing industry in early January, stating that it has 23 factories in China and is highly dependent on Chinese production.
The epidemic may lead to a risk of rupture in its global supply chain; Sharp said at the press conference that if the epidemic breaks The impact continues to intensify, and we will consider transferring the production business originally located in China to other countries and regions.
US Secretary of Commerce Ross stated in a Fox TV interview, "This epidemic will help create a return to the United States.
" The tight capital chain has become an uncertain factor in the follow-up development of enterprises.
Large-scale shutdowns will not only cause idle labor, but also increase labor costs and debt servicing burdens.
For example, Rifeng Group has 4,500 employees.
Although it has not started production, it still needs to pay nearly 20 million yuan in guarantee costs every month.
Insufficient production capacity increases the risk of default, which directly leads to orders not being completed on schedule, and companies face the risk of default.
For example, Yixinyuan Wool Industry has export orders of more than 30 million yuan per year.
If the start of work is delayed for too long, it is still unknown whether the order will be completed on time.
In addition, the epidemic will also reduce the liquidity of monetary funds at the social level, leading to a significant decline in the GDP of various production factors.
Reasons such as tight cash flow and supply chain transmission will in turn have a greater impact on the real economy, increasing the possibility of problems such as corporate losses and unemployment.
Industrial Internet helps the manufacturing industry fight the epidemic Industrial Internet helps the manufacturing industry fight the epidemic The industrial Internet has the function of fully connecting all industrial elements, the entire industry chain, and the entire value chain, and can effectively achieve resource scheduling optimization and precise decision-making.
In this epidemic prevention and control, some companies gave full play to the advantages of industrial Internet technology and greatly improved the efficiency of epidemic prevention and control.
More importantly, after the epidemic is over, the advantages of the industrial Internet are expected to resolve the negative impact of the epidemic on the manufacturing industry and accelerate the recovery of the manufacturing industry.
First, give full play to the advantages of data aggregation, resource scheduling, and data analysis to improve the efficiency of emergency response during the epidemic.
The Industrial Internet has shown outstanding advantages in this epidemic and has become an important tool for improving the efficiency of emergency response.
In the medical supplies docking of supply and demand, Haier COSMO Pla t on-line medical supplies information sharing resource aggregation platform, as of February 1 brought together 935 information needs, connect 608 hospitals, 221 companies issued over 200,000 masks, protective clothing In terms of hospital construction support, Sany and XCMG rationally arranged the operation of industrial machinery clusters based on the industrial Internet's ability to remotely dispatch equipment, which supported the rapid construction of Huoshenshan Hospital.
In terms of body temperature screening and monitoring, Questyle, Alibaba, China Electric Internet, Gettron Technology and other companies have applied smart body temperature screening systems to this epidemic prevention work, and effectively improved the density of subways and high-speed rails through industrial Internet AI analysis capabilities.
The speed of temperature screening in population areas.
Second, help manufacturing companies move from offline sales to online sales, and accurately connect with customers.
Based on the ubiquitous connection function of the Industrial Internet, it connects the needs of users and the production of manufacturing enterprises, seeks orders for manufacturing enterprises, expands the market, and solves the problem of weak demand.
For example, HUAWEI CLOUD and UFIDA Procurement Cloud released an online supply-demand connection SaaS*.
Based on the "One-click" function, purchasers can send quotation requests at home only with their fingers, and all legal and compliant suppliers can quickly respond to quotations online; Petrochemical Yingke has created the "You Are Accompanied by Oil" mobile phone A PP .
Customers can avoid traveling to and from oil company business halls, oil depots and other places, and realize customer binding, customer ordering, oil pickup appointment, information release, information query and other functions without leaving home.
, To avoid concentrated contact with the crowd, while promoting the sales of refined oil.
Third, help manufacturing companies quickly locate upstream suppliers and improve the efficiency of raw material procurement.
Based on the resource scheduling function of the Industrial Internet, it will open up upstream and downstream enterprises in the industrial chain, improve the supply chain coordination and management capabilities of manufacturing enterprises, and solve the problem of short-term supply of raw materials for enterprises.
On the one hand, it can realize the rapid discovery and configuration coordination of key materials.
For example, during the epidemic, China Huaneng Shanghai E-commerce Company found that urgently needed materials were available in Daqiuzhuang, Tianjin through the supply chain big data system.
At the same time, it accelerated the integration and dispatch of transportation resources through the two major logistics platforms of "Nengyun" and "True Fortune".
In less than 12 hours, the Shanghai E-commerce Company's "Vanguard Vehicle" has transported the materials from Tianjin Daqiuzhuang to the construction site of Caidian, Wuhan.
On the other hand, it can improve the efficiency of procurement management.
For example, the Longkun Wangcai team and the Suchang Industrial Internet team jointly launched a procurement model based on *online interaction, which not only guarantees the smooth development of corporate bidding and procurement business, but also takes into account the supervision and audit requirements of the company’s procurement work, and the whole process is easy to use , Efficient, legal, and compliant, helping bidders to complete the bidding work without leaving home.
Fourth, provide enterprise remote office support to reduce the frequency of front-line personnel traveling to and from the factory.
The remote collaboration function based on the industrial Internet helps enterprise employees realize home office and online operations, and solves the problem of labor shortage and difficulty in resuming work.
For example, in terms of design and research and development, Beijing Yundao Zhizhi has launched free-of-charge simulation models in various fields such as crankshaft centrifugal force, metal plasticity, agitator flow field, etc.
, to help companies improve R&D and design capabilities; in terms of production control, Beijing Yakong Technology develops discrete industries The equipment management system provides functions such as minimal equipment networking, intelligent operation and maintenance, point inspection, preventive maintenance, and efficiency statistical analysis; in terms of operation and management, Huawei provides WeL ink cloud platform* for free, and supports remote* meetings and other functions.
On January 31st, 50,000 WeLink conferences were held and 170,000 people participated.
In terms of operation and maintenance*, Alibaba Cloud built a medical equipment monitoring platform to provide full life cycle management of medical equipment, equipment data visualization, etc.
* to realize remote equipment Operation and maintenance*.
Fifth, help companies predict market changes in advance, and improve the intelligent decision-making level of production business under market fluctuations.
The decision-making optimization function based on the Industrial Internet helps companies predict market changes and realize intelligent on-demand production.
UFIDA provides YonSuite solutions, based on the integrated analysis of online and offline data, customers and distributors' entire process data, to help companies carry out precision marketing, and then realize sales-based production and production-based ordering, and drive business while doing a good job in epidemic prevention Efficient operation.
The epidemic prevention and resumption production management program launched by Alibaba Cloud and Dingding monitors the operating status of the factory in real time, grasps the comprehensive production and operation status, quickly assists in production management decision-making, and realizes lean warehouse management, which can help companies improve the efficiency of resumption production management by more than 50%.
Thereby reducing direct business losses and indirect injuries.
Sixth, connect financial institutions and manufacturing companies to solve the problem of tight funds.
Data credit* based on the Industrial Internet helps manufacturing companies use production data as the basis for financing credit evaluation and broaden corporate financing channels.
Aerospace Cloud Network launched cloud network loan industrial finance* for small, medium and micro enterprises.
By connecting the industrial Internet platform with the Postal Savings Bank platform, it provides functions such as financial product display, user online credit application, data authorization push query, and timely feedback of credit results.
Help companies alleviate the financial pressure brought by the epidemic.
Kingdee Group has also created corporate credit information* based on ERP data, transforming corporate data into credit data assets, and exerting unique value in risk control of small and micro credit.
Four major measures to promote the transformation and upgrading of the manufacturing industry Four major measures to promote the transformation and upgrading of the manufacturing industry In the face of the short-term and long-term impact of the new crown epidemic on China’s manufacturing industry, it is recommended to continue to deepen the industrial Internet innovation and development strategy, and further leverage the industrial Internet in promoting the manufacturing industry The key role of resource coordination, on-demand production, precise management, and * transformation, accelerates the restoration of production and digital transformation of enterprises.
The first is to give play to the role of industrial Internet in supply and demand docking and resource allocation to reduce sales decline and supply chain tension caused by the epidemic.
Encourage manufacturing enterprises to rely on the Industrial Internet to open up the terminal market and upstream and downstream of the industrial chain.
Through market data aggregation and analysis, we will carry out precision marketing and on-demand production.
While vigorously expanding the order acquisition channels, we will dig deeper into user needs and look for new market opportunities.
Based on the coordination of resource scheduling, efficient management and coordination of the supply chain are carried out to realize the rapid procurement and timely distribution of raw materials to ensure the normal and orderly production of enterprises.
The second is to promote the innovation of industry-finance integration based on the Industrial Internet to ease the financial pressure of enterprises.
Give full play to the advantages of industrial Internet resource aggregation and data analysis, carry out multi-dimensional corporate credit evaluation, support banks to achieve rapid and accurate lending, and lower corporate financing thresholds.
Promote the docking and cooperation between financial institutions and industrial Internet companies, carry out the innovative promotion of industrial Internet financial products such as supply chain finance, commercial factoring, and intellectual property pledges, and further expand corporate financing channels.
The third is to use industrial Internet technology to predict production capacity fluctuations and supply chain risks, and take countermeasures in advance.
Support regional governments or enterprises relying on the industrial Internet platform to obtain real-time industrial data such as production, market and logistics, establish capacity analysis and risk prediction models for regional industrial clusters or individual enterprises, and judge changes in capacity demand and raw material supply bottlenecks through simulation and deductive analysis , Carry out planning and scheduling in advance to avoid problem risks.
The fourth is to use the industrial Internet to carry out monitoring of the resumption of work and production to support the government's precise implementation of policies.
Support local governments and industrial parks to build an industrial Internet industry monitoring public* platform, connect key production equipment and business systems of key enterprises, and through visual management and statistical analysis of enterprise production and operation data, timely study and judge the difficulties faced by local enterprises in the process of resuming work and production.
Find the weak links in policy measures, and implement the right remedy and precise measures.
From a long-term perspective, it is also necessary to continue to promote the digital transformation of enterprises to enhance the manufacturing risk resistance.
Vigorously promote the innovation of industrial Internet technology products, accelerate the development of digital transformation of equipment networking, system integration, etc.
, encourage and guide key industrial equipment and business systems to use platform platforms, accelerate the popularization of industrial Internet innovation application models, and comprehensively improve the level of digital management of enterprises.
Intelligent production capacity.