Why should the supply chain be digitally transformed?

Why should the supply chain be digitally transformed?

Why should the supply chain be digitally transformed? The supply chain is complete. In the face of the epidemic, the problem of returning to work has plagued many enterprises, and a series of problems such as capital chain, supply chain and personnel arrangement have gradually emerged. The development of China has entered a new era, and the full coverage of the Internet has brought people's lives into a brand-new form. Let's understand why the supply chain needs digital transformation and related materials.

Why does the supply chain need digital transformation 1 Almost all industries are undergoing digital transformation, which has facilitated tens of millions of people, solved the "last mile" problem and is subverting the traditional taxi industry; In the banking industry, traditional banks have to bear the pressure of great challenges from financial technology enterprises. If we compare an enterprise that is very advanced in data with an enterprise that is still at the level of mechanization or even labor-intensive, it is obvious who has the greater advantage.

Nowadays, retail enterprises are facing a constantly changing business environment. If they can't find a way to bring customers a good experience in time, can't adapt to the supply chain as soon as possible, and can't implement effective system management, it will seriously affect the value output of the supply chain. Therefore, in the critical period, it is particularly important to improve the supply chain fineness of enterprises.

How to carry out digital transformation?

1. In the era of win-win cooperation, it is the foundation to drive upstream and downstream partners to get through data information. To build a digital supply chain, we need to obtain different data in the supply chain, otherwise we can't realize the transformation to a digital supply chain.

2. In order to design a reasonable process, big data analysis is generally used to improve inventory management, quality management and employee management. Big data can feed back accurate information to enterprises, including planned output and order quantity, so that enterprises can find their own shortcomings faster and stimulate their motivation.

3. Consumer-centered, the advantage and purpose of digitalization is fast and accurate. By predicting and perceiving the needs of consumers, this is the primary problem of digital transformation. First of all, we should collect a lot of consumer data, and then make a detailed analysis to optimize the products and reclassify them before distributing them to the point of sale. Using big data, we can analyze the global supply chain and understand the needs of customers more widely, thus occupying the position of industry giants.

Digitalization of supply chain is the general trend, and digital reform is inevitable in every industry. With the rapid development of economy and technology, digital information technology will penetrate into our daily life, and the road of digital transformation of supply chain is worth our expectation.

Why does the supply chain need digital transformation? 2. The environment makes trading and interactive intelligence trigger digital innovation.

With the development of mobile Internet, cloud computing and artificial intelligence technology, the change of social environment is accelerating, which stimulates the demand for digital innovation such as zero contact, cloud consumption, unmanned self-help and intelligent automation. In the intelligent environment, enterprises must adapt to the environment of the times and use new tools and technologies to realize the link with social factors. The so-called natural selection, survival of the fittest, this law applies as usual.

The second is technological innovation, and digital technology empowers the development of new links and new models.

The development of technology, especially the development and perfection of digital technology, provides a technical basis for digital integration, resource flow and value sharing, and provides more possibilities and implementation basis for digital transformation of enterprises. Even enterprises that don't understand digitalization can combine the existing general technical means and tools to partially realize digital transformation, so that enterprises will not fall behind.

Not all enterprises have sufficient technical ability and financial strength, so in the era of digital transformation and high-tech requirements, there are many common technical means and enabling technical mechanisms that can be applied to the digital transformation of enterprises.

For example, the digital empowerment systems of major Internet companies are housed in their ecosystems, but at least enterprises can appreciate the advantages and efficiency of digitalization, so that enterprises can live more directionally and pertinently in the ecosystem, which is also applicable to manufacturing enterprises at the supply chain end.

Third, consumption upgrade: consumption awareness and behavior upgrade stimulate data value.

The rapid development of China's economy has brought about the acceleration of consumption upgrading, the change of consumption individuality and the full release of individuality. In the future, consumers will be more willing to pay for experience, environment, emotion and service; Consumption upgrading also makes consumers pay more attention to spiritual consumption, based on the construction of emotional content and the creation of goods, to better meet emotional-driven consumption;

With the improvement of product richness, consumers pursue higher cost performance, live broadcast with goods, and the rise of new consumption patterns such as Little Red Book and Pinduoduo further make enterprises need to know consumers better. Personalized consumption, demand upgrading and demand mining have accelerated the deepening of data value.

Fourth, the concept of development: value orientation leads to digital transformation and innovation of enterprises

Changes are reasonable, and general laws exist. Nowadays, many enterprises actively need digital means to break through the bottleneck and predicament of development. There is a saying in the book "Anti-Fragility", "Glass is a dead thing, and living things like to fluctuate. The best way to verify whether you are alive is to verify whether you like change. Remember, if you're not hungry.

Delicious delicacies will be like chewing wax. Without hard work, the result will be meaningless. Similarly, if you have not experienced pain, you will not know how to be happy. Faith will not be strong without suffering. Deprived of personal risks, it is meaningless to live a moral life. "

When we accept the values of this passage, we know that the environment of enterprises and individuals is always full of challenges, whether good or bad. Only by actively embracing and adapting to change can we better adapt to this era. The digital transformation of today's enterprises is the embodiment of their anti-vulnerability ability.

Why does the supply chain need digital transformation 3 digital age! Importance of fast omni-channel supply chain transformation

1. Informatization vs digitization. Are we clear?

I believe many friends have come from other places, and it is not easy for everyone to get together at today's meeting place.

I want to talk to you about the definition of "digitalization" first, because many times, we will confuse "digitalization" with "informatization".

Let me take the fireworks typhoon as an example. As a user of public transportation, the customer experience is not very good when I come to Shanghai for a meeting this time. I was particularly anxious because the organizing committee put my speech at the front. I feel that I have a great responsibility and must not delay this matter, so I began to pay attention to my flight status a few days ago.

How far have I gone? Yesterday, I asked the organizing Committee to book me a high-speed rail ticket as an alternative. I still feel unsafe this morning. I contacted a friend of mine of China Eastern Airlines, who is the captain of China Eastern Airlines. I sent him WeChat and asked him what the weather was like in Shanghai. As it happens, the plane he is flying is exactly the plane I want to take. I began to ask him if he had taken off normally since this morning. How's the weather? Can you be punctual?

What is the problem I want to illustrate in this example? I want to say that knowing an airline captain is really something to show off at a critical moment. I also want to say that we have achieved a great degree of informatization, but in many scenarios, information flow still lags behind logistics, and we still have a lot of room for improvement.

Ok, let's continue to talk about typhoons. Now, we switch the camera, cut to the big screen of the Meteorological Bureau, and project various typhoon trends monitored by the satellite, which may include wind force, wind direction and wind speed.

And then recorded in the system through a series of manual or automatic transmission modes. There are a lot of key information on this big screen, which is the most concerned content of the Meteorological Bureau. Then the staff sitting in front of the computer screen see these core information, such as how strong the wind is and how many levels to start, and need to send a notice to the relevant departments to start the emergency plan.

For us logistics people, do we often see the digital big screen that is particularly popular now? Me too. When I visit the supplier's site, I am often taken to their digital big screen to see various KPIs, such as the number of vehicles in transit, the distribution of vehicles, the number of anomalies and so on. Our company also has such a large digital screen. Then I found this big screen. Everyone doesn't really think much except the boss. Everyone's daily attention is still on the daily things such as car assembly, dispatching, delivery, reconciliation and settlement.

Everyone can feel it personally, just with information. Is our experience good enough as an end user?

So what is digitization? Digitalization is an upgraded informatization, which is higher than informatization. Where is the height? Digitalization adds algorithms, models, rules of the game and the interconnection of everything. Digitalization involves more people and equipment.

Take our typhoon as an example. Let's do a thinking experiment. For example, upgrade to "Miles Travel" to link all the network information of multimodal transport by sea, land and air.

Get through, according to everyone's different demand parameters, you can give "travel advice" in real time, such as weather, flight delay, if you change to railways, cars and other means of transportation, which band is the most suitable, and how long it will take. Finally, the user can change the itinerary with one click in the "solution" given by the system.

To sum up, the end point of informatization is actually the decision-maker, providing the decision-maker with the necessary materials, and the decision-maker looks at these materials to make the next strategic decision.

The end point of digitalization is direct action, not one or two decision makers.

Second, how does digitalization confront or crack the "impossible trinity" in the industrial age?

First of all, what is the impossible trinity in the industrial age? The biggest benefit of the industrial age is mechanization and large-scale production. If there is no difference between the two enterprises in other aspects, then the core of everyone's competition is productivity. Who can produce more products per unit time, whose quality is more stable, whose enterprise competitiveness is stronger, right?

In the past many years, we have been studying the Six Sigma and lean production introduced from abroad to China, in order to further improve the efficiency of mass production and eliminate the waste in production process and technology.

But this kind of Excellence, just like running, the athletes dig every movement, and the speed has been accelerating, reaching a limit and a ceiling. In the process of continuous improvement of production efficiency in the industrial age, an impossible trinity has gradually formed, that is, good products, good services and lower costs.

In the industrial age, the formula of enterprise profit is not difficult to understand. We always hope that the sales price will continue to increase, the lower the cost, the better, and the more products we produce and sell, the better.

I think all my audience friends felt the same way when I heard this. Our company is actually Party A and Party B. In recent years, we often ask suppliers to reduce prices while ensuring service quality. We found that there was still room for price reduction through bidding in previous years. In the future, the water will be squeezed out, the price will not go down, the business will become more and more painful, and the service will be sacrificed, which will bring greater internal and external management costs.

So can digitalization solve this problem?

As far as the profit formula of the enterprise just now is concerned, other things being unchanged, digitalization has added another factor to us, that is, the number of circulation.

To give a simple example, for our logistics company, isn't it just how many times a day the car can run?

I will give two further examples of our company's digitalization to illustrate how digitalization can break the impossible trinity in the industrial age. In fact, we finally answered a question, that is, how important digital transformation is to enterprises.

Our warehouse in Shanghai is the largest warehouse in China, with over 30,000 pallets. A few years ago, we made various optimizations and found that the cost has been reduced to nothing. The improvement of efficiency mainly depends on increasing the number of people, from the original 40 to 60, reaching 90 in the peak season. The efficiency of entering and leaving the warehouse can only meet the needs of peak business hours.

Starting from 20 17, we designed and built a B2B automatic warehouse, with a high storage space of 24 meters, the space utilization rate increased by 4 times, the work efficiency was 1.3 times that of the traditional warehouse, and a new layer of e-commerce and special channel packaging workshop was built, which reduced the total cost by 30%, laying the foundation for the growth demand of our business.

Without this structural change and digital transformation, it is difficult to further improve the original model. From shelf picking and sorting to loading, the operation is realized by WMS algorithm and man-machine combination, which ultimately improves efficiency and reduces costs.

In the implementation of the automated warehouse, we also designed the MTO mode, that is, according to the orders of e-commerce and special channels, which is a B2B+2C Omi channel. We can combine SKUs and package them according to the customer's order demand, without stocking in advance and overstocking inventory. We can meet and stimulate this part of consumers' demand, which is actually a process of creating value.

Today's world benefits from the large-scale production capacity brought by the industrial age. In the digital age, it is tailored for each customer on the scale of industrialization.

Therefore, digital transformation can bring efficiency improvement, cost reduction and new value creation to enterprises. These three things add up to the competitiveness of enterprises. You can think about it. There is no difference between our upstream suppliers and downstream customers.

The difference is how to use digitalization to connect people more efficiently and make your upstream and downstream business easier, happier and safer. So digitalization is not relative competitiveness, but absolute competitiveness, which will determine the niche of enterprises in an ecological circle.

Imagine if your business income is 65.438+000 billion and 654.38+0000 people. Revenue doubled to 20 billion yuan, but the number of employees did not increase significantly. So, has your enterprise improved its competitiveness in the industry?

Mr. Ren of Huawei once said: Three people do the work of five people and take the money of four people. I think this is a vivid summary.

Third, digital transformation from "skin" to "soul", how do we practice it?

Now let's look at several aspects of digital transformation from the surface to the deep. The content of digital transformation can be interpreted from multiple dimensions. I refer to the content in the compulsory course of Huawei's digital transformation and find one that is closest to our reality. Share it with everyone.

I suggest that you scan what you can do to solve the current pain points and improve the customer experience.

Below, I use an actual case of our logistics as an example.

Everyone knows the control tower of the airport. The duty of the control tower is to arrange the take-off and landing of aircraft, reduce congestion and maximize the utilization of runways, car ferries and covered bridges.

In the past two years, we have been making a "land transportation business control tower". Let's take a look at what we have done in the digital transformation of this land traffic control tower.

The first level, which is superficial, is called transaction, which can be understood as our skin, the shallowest step.

It can be understood as such a simple step as "cash on delivery". Maybe before this step, we have done a lot of offline preparation, communication and copywriting, but for this step of transaction, we can realize it online, making the experience of both parties better, more convenient, easier and more efficient. Digital trading mode, let me give you some examples related to our current projects, such as bidding, goods handover, contract signing and invoice processing.

After the fur is digitized, it goes deep into the meat, which represents the operation mode and really affects the operation efficiency of enterprises. For our land traffic control tower, the digitalization of this operation mode includes traffic planning, route combination, customer reservation management, platform management and so on.

One step further, we will reach the skeleton, which is the organizational model of the enterprise.

For example, our own logistics department, the previous organizational model is a bit like the vassal system. A factory and a warehouse are all a vassal state, and each vassal state has its own small team. When we digitize our operations, we divide the whole logistics chain into different paragraphs or modules according to the end-to-end process, from purchasing and selecting suppliers to reconciling with suppliers. The train crew is responsible for the train crew, and the dispatcher is responsible for the dispatching. Each module is only responsible for its own part of the work and responsibilities, which is to turn the original logistics generalist into a meticulous expert.

Then all modules work together on the same platform to accomplish one thing, that is, "order delivery". So, as you can see, the original vassal system has been broken, and it has become a team cooperation system, and each module will gradually precipitate its ability.

Then, like Transformers, the organization needs to keep the status quo. Of course, we need * * * sharing mechanism and * * * sharing platform as the necessary support, such as our transportation console, the only platform, and people in each module can see the data on the platform and interact.

Finally, the ultimate in digitalization, that is, the soul. You will find that the corporate governance culture (structure) has also changed after digitalization. I'll put a picture of the mortise and tenon structure of China, and let's feel it.

Digitalization is a process of rebuilding enterprise structure and ability from skin to muscle and bone. When digitalization can open up all elements and data in various business scenarios, whether internal or external, these components are put together like mortises and tenons. Is it stronger?

Here, I'd like to put a sentence from Li Xi, president of the 11th Middle School Attached to Beijing Normal University. You can experience that the problems that can be solved by structure do not need system, and the problems that can be solved by system do not need meeting. Compared with inefficient daily meetings and communication, structure is the most reliable mechanism.