Foxconn talks about the reflection and optimization of supply chain management

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/ 2019-05-24 / News

After investigation, suppliers generally reported that this year's order demand is down 5%~10% compared with last year (2018); it is expected that end product customers may pass 25% of the tariff part to the parts supplier...


"Today's Foxconn is no longer a pure electronics manufacturing supplier. The Group has been continuously rethinking and optimizing the entire manufacturing chain for more than 30 years in China. Management has been upgraded to another level,” said Jiang Yuefeng, senior director of Foxconn Global Purchasing.

 

On May 23, the 2019 international electronic industry chain resource docking organized by ASPENCORE's media "International Electronic Business", "Electronic Engineering Album" and "Electronic Technology Design" The conference was held in Shenzhen. At the meeting, Director Jiang analyzed the mode and characteristics of the Group's supply chain management, and combined the current trade situation to share relevant experience for SMEs to strengthen their business strategies.

 

Opinions on Sino-US trade wars

 

"Talk, yes! Fight, accompany! Bet, Imagine!"I believe this is the most widely seen sentence in the near future. The Sino-US trade war has been playing against each other since 2018, and the impact on the industry is actually small. Unexpectedly, in May this year, the US has cracked down on China in a large scale. The high-tech industry and representative enterprises, China's attitude has become more and more firm.

 

Jiang Yuefeng believes that the impact of trade friction on China's high-tech industry has just begun, the industry is even more The concern is that in the future Sino-US trade conflict, whether it is a large enterprise or a small and medium-sized enterprise, how to strengthen its own business physique to face the competition of international trade barriers.

 

"This reminds me of Huawei's general statement - 'Don't incite national sentiments'." This is a very important thing. I hope that our industry should not incite national sentiments. Instead, we must calm down and think about what our company should do. How to improve its own operating mechanism to face international trade competition, rather than blindly inciting National sentiment. Jiang Yuefeng said.

 

Group Supply Chain Management Features

 

Foxconn’s annual component purchases account for approximately the entire Chinese component consumption. About 10% of the volume, how does the group manage the corresponding supply chain work with such a large purchase volume? The Group's supply chain management features are summarized as follows: 1. Using the platform to centralize data for Big Data management; 2. Doing Commodity professional management, using data analysis, data modeling, and reference, collecting market demand and trends Gradually sum up the forecast of the market conditions; 3, process innovation, is Hub + unmanned mobile warehouse; 4, extend upstream, master the key analysis of the industry chain; 5, continuous optimization, the group is currently in the report, bargaining and other links Import AI apps.

 

Among them, the Group will make the professional management of material classification and classification very detailed based on data application. “The purpose of the subdivision is mainly to make procurement strategy formulation, bargaining strategy, negotiation/supplier management maintenance and alternative outsourcing strategy. In the electronic distribution market, what we remember is the shortage of MLCC last year.Through years of accumulated data, the Group clearly analyzed that MLCC is about to be out of stock. Of course, I can't make the group's purchases so amazing, but we can at least make accurate predictions one quarter ahead of schedule. As for the 2019 MLCC market, if there is no artificial (especially trade war) intervention, there will still be a shortage of individual materials, mainly in the high-end MLCC, applied to the server. Jiang Yuefeng said.

 

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Frank Chemical Global Purchasing Director, Senior Director Jiang Yuefeng

 

Before said, Chinese manufacturing plants are gradually moving away from home.Taiwanese manufacturers, including the group, have considered returning to Taiwan. However, the Taiwan region also has many shortcomings for the manufacturing industry. The most tense is the lack of electricity and lack of work. It seems that the Group's Longhua factory has at least 160,000 people, which is simply impossible to achieve in Taiwan. How to solve the employment problem? Unmanned mobile storage is a good solution.

 

It can be seen from a video that there are almost no people between the parks, and only a few white cars are shuttled between the parks. The components are delivered to a specific shop without errors.

 

"This is a pilot unmanned transport vehicle. The possibility of an unmanned transport vehicle is very high, because the speed is only 20 kilometers. Now we are thinking The method to increase the carrying capacity is currently only 100-200 kg, and the carrying capacity is far from enough." Jiang Yuefeng said.

 

Why try an unmanned transport vehicle? Jiang Yuefeng pointed out that because the group through the classification of parts, professional management of parts, the supply of materials in the Hub, and further into the unmanned transport vehicle in the future, the goods are also a warehouse in the mobile.The production lines of the various units of the group will not have warehouses in the future. There will only be Hubs and mobile warehouses that are being transported to the manufacturing line on the road. This is a very important change for the people in the tube factory. The warehouse is not visible in the factory, the warehouse is in the centralized Hub, on the way to the production line.

 

Procurement platform will open supply chain resources

 

Speaking so much, everyone will be very strange, what does this have to do with us? This is the group's approach, it is not a dry goods. Jiang Yuefeng said frankly: "It is true that ordinary SMEs have no way to apply such resources. Therefore, we hope to share the Group's procurement resources with friends from various outside companies so that you can enjoy the resources of the Group's procurement." p>

 

According to the introduction, Hongxin Youdian is a procurement platform jointly established by the Group and the National Information Center. It will move the entire group's procurement process and structure to this platform. Can be used for wiring engineering services and component DNA databases,And provide supply chain finance, component testing and verification, system certification and counseling, warehousing + logistics and other services.

 

"Overall, combined with data applications, the Group's procurement can provide insight into market conditions and enhance expertise, use data to assist in purchasing decisions, and further achieve procurement value, The value of the supply chain is improved." Jiang Yuefeng concluded.

 

Finally, Jiang Yuefeng reiterated his views on the Sino-US trade war. He believes that the science and technology industry faces the Sino-US trade war. It must be like "not encouraging national sentiment" as mentioned by Huawei. Instead, it must calm down and think about how its own enterprises are sound in all aspects of competitiveness and how to improve them. All aspects of integration, using resources to enhance their own level. This will make it possible to face a variety of challenging challenges in the future.

 


Keywords: Foxconn
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