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2024

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2024 Traditional manufacturing goes to sea: Smart factories are the first step?


From traditional manufacturing to digitally enabled manufacturing, what is the most difficult part?

"In order to present intelligence, it is necessary to change all aspects of operators, technicians, software applications, and processes." One of the hardest things to change is solidified thinking." Recently, Hu Yunliang, founder and chairman of Kefeiya, said in an interview with a reporter of the Daily Economic News.

Kefeiya is located in Luoyang furniture industry belt steel furniture brand. The company was founded in 2000 as an OEM. Enterprise check shows that the company's registered capital of 61.8 million yuan. Compared with the large and small steel furniture factories in the Luoyang industrial belt, Kefeiya is different: the factory area is larger and the factory area is cleaner. If you walk around the factory, you will find that robotic arms and automated operation lines are already the "protagonists" of the factory.

Hu Yunliang told reporters that he came to Beijing to study in 2013 and knew that smart factories would become the mainstream in the future, so he wanted to introduce smart production lines into his own factories and plan digital transformation from this point on.

After 2020, Kefeiya's transformation presses the accelerator button. In 2021, his first digital factory was completed, a total of nine years; In 2023, Kefeiya chose to go to sea. This year, Kefeiya told the National Business Daily reporter that the new unmanned factory is expected to be put into use in 2034 - the next 10-year plan for Kefeiya.

Wang Jian, professor of the School of International Economics and Trade at the University of International Business and Economics and director of the Department of International Business and Economic Cooperation, told the Daily Economic News that the transformation of domestic manufacturing industry is currently in the stage of business integration with the digital age.

"Chinese enterprises from the original industrial production is relatively backward to now have been able to control the cost, slowly achieve automation, the next step is the popularization of automated intelligent enabled unmanned factories, and with the effective combination of e-commerce platforms, cross-border e-commerce, began to support customized flexible production." "Wang Jian said.

If you don't go smart factory, the enterprise is dead?

"During a class in Beijing, a teacher shared his thoughts on the future and the declining population, and the eventual reluctance of young people to go into factories. 'In the future, if you don't use smart factories, it's a dead end.' Recalling that when studying in Beijing in 2013, Hu Yunliang was instantly moved by this sentence and made up his mind to start building a smart factory.

At that time, Hu Yunliang only knew the word "smart factory", but there was no concrete concept. Therefore, in 2016 and 2018, Hu Yunliang went to Japan and Germany to study, and only then did he have a new understanding of digital and intelligent empowered factories.

"With the change in perception, the gap is really felt." Hu Yunliang commented on the cognitive reconstruction process at that time. That was followed by a long process of persuasion and changing the mindset of the rest of the factory staff. In 2021, Kfeiya's smart factory began to build, and it was officially put into operation in September 2022.

After production, Kfeiya bought a lot of advanced equipment, such as KUKA's robotic arms. It was a big investment for Cofeiya at the time. At the time, Hu was defiant, insisting that the investment was cost-effective and necessary.

"Our financial cost accounting, equipment depreciation is generally in 10 years, then KUKA 10 years after all net profit." And when I look at the smart factory, I find that some of the equipment inside is 20 years old, and the accuracy and speed of these devices are still online." This is why Hu Yunliang made up his mind.

But the robot arm ran into problems on the production line. Hu Yunliang found that "making money is not easy, but spending money is more difficult". The product can be bought as long as the money is paid, but how to apply it needs to rely on the factory's own experience.

"At that time, the production rhythm of 30% of our equipment could hardly be connected together, such as the rhythm of the KUKA robotic arm, but other processes, such as' bending ', were slow, so that our production efficiency could not be improved." We ended up replacing a lot of the old equipment as well." So it took another six months to phase out the old equipment.

After this, Kfeiya began to enter the real "smart factory time".

But challenges continue. After the hardware improvement, Kefeiya has encountered a new problem: talent shortage.

Hu Yunliang said: "There are too few people who are willing to go into the factory and can use smart devices well. We are spending a lot of money to hire people to solve this problem."

Also facing talent problems with Kefeiya is Star, which is also a member of the Luoyang steel furniture industrial belt. At present, the star can not recruit suitable talents responsible for overseas operations.

Acquiring new additions overseas: from "traditional distributors" to cross-border e-commerce platforms

A senior industry source told the "Daily Economic News" reporter that the transformation of talent demand is also a common problem encountered in the transformation of traditional domestic foreign trade, "because the practice of overseas markets has changed."

Wang Jian told reporters: "The original factory is to lead the cost, so priority cost control." But the new young people think differently, and their factories need to be both digital and connected to the front end of the sales platform market."

The traditional foreign trade market is mostly completed by dealers. "At that time, in the Australian and American markets, we did it through dealers, but there were still more orders. Then we approached Amazon and started experimenting with the C-end market." Hu Yunliang said.

Hu Yunliang has a total of 3 phases of factories. Phase A and B are the old factory areas. The "Daily Economic News" reporter visited the newly built C factory, which has been "very online" in terms of automation and intelligence. Hu Yunliang told reporters that the goods in this factory are only for overseas sales, mainly to meet the delivery needs of the Amazon platform.

Going overseas is a smart choice. Iresearch consulting data is expected that with the steady increase in the penetration rate of global e-commerce, the scale of China's cross-border export e-commerce industry is expected to reach 10.4 trillion yuan in 2025, and the compound annual growth rate of 16.4% from 2022 to 2025.

Wang Jian said: "The foreign market than the domestic market profit is a fact, after all, the foreign market is large, the domestic market volume is strong, even if it is a new product, the domestic payment speed and other aspects of the business cycle is very long, the enterprise capital chain is a test, the cost of the enterprise is very high."

"Many businesses feel that it is relatively simple to do foreign trade, and one of the advantages is that the payment is fast, so the current trend is: new products are first done in the international market." "Wang Jian said.

Talking about the future development, Hu Yunliang told the Daily Economic News reporter that the two factories in Zone A and Zone B mainly serve the needs of the domestic market.

"We are not increasing [the budget for this]. The new factory in the future is all for overseas markets, and the 160,000 square meters of the next 4.0 factory is all for foreign markets. I also want to go out and continue to investigate the market and understand market trends and needs." Hu Yunliang said.

At present, the domestic cross-border e-commerce platform provides rich choices for merchants in the three modes of full hosting, semi-hosting and independent operation of merchants, and the threshold for merchants to go to sea is constantly lowered. Especially in the past two years, in addition to Amazon, Alibaba International Station and Pinduoduo.com's cross-border e-commerce platform Temu have penetrated into many manufacturing fields such as the Yangtze River Delta and the Pearl River Delta to provide full-link digital services for a large number of manufacturing brands, giving birth to B2B, B2C, C2C and other online trade transaction service models. With the wide application of digital technology and even the arrival of the AIGC era, the innovation of online exhibition, cross-border live broadcast, cloud negotiation and other innovative changes are reshaping the form of trade.

Huaxing Securities research report believes that the current European and American affordable consumption wind, at the same time, with the continuous development and improvement of various departments in recent years, the release of favorable policies for cross-border e-commerce, China's cross-border e-commerce industry is expected to enter a period of rapid development.

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