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Easy-to-work products: Industry 4.0, how to embrace changes in the upstream and downstream industries

      At present, my country's manufacturing companies are facing such conditions as rising prices of production factors, rising environmental costs, rising labor costs, intensified competition within and outside the manufacturing process, and weakening global demand. The profitability of manufacturing companies is facing severe challenges. A series of problems such as rising costs, weak demand, and financing difficulties have forced the manufacturing industry to proactively embrace changes and find new breakthroughs.

  Under such changes, how can companies break through? The author interviewed several representatives from the upstream and downstream of the manufacturing industry: Chaoyang Heavy Machinery, Kennametal, and Great Wall Lubricants. They have their own problems. The author hopes that through the perspective of the operating problems encountered by the three representative companies, it can bring thinking about their own business management and some inspiration for breaking the situation for the majority of manufacturing companies.

  Chaoyang Heavy Machinery: Capital turnover and production capacity problems hinder companies from moving towards a billion-dollar scale

   Chaoyang Heavy Machinery is an automobile industry supply chain enterprise whose main business is the manufacture and sale of mechanical products and parts, and casting products. The demand for steel is particularly prominent. In recent years, it has been trapped by the overall price fluctuations of steel, coupled with the decline in corporate profits, and the contradiction between steel purchase inventory and orders has become increasingly prominent. Once the upstream demand side temporarily changes product demand, the basic capacity of the supply chain is weak. Will be enlarged. How to ensure supply and production, reduce procurement costs, and orderly increase production capacity to increase the number of orders received has become the top priority for breaking the game.

   For this reason, Chaoyang Heavy Machinery found a B2B enabling platform for industrial products-Guangzhou Yigongpin Technology Co., Ltd. (hereinafter referred to as Yigongpin). Relying on the layout of the upstream and downstream of the supply chain, as well as big data computing decisions and financial support beyond the capabilities of traditional suppliers, Yigongpin quickly retrieved 20+ large steel mills and 40+ small steel mills that have cooperated, providing Chaoyang Heavy Machinery the first time A sufficient supply of steel.

   At the same time, it calculates the fluctuations in the steel raw material market based on big data and the interpretation of national macro-control policies, and provides Chaoyang Heavy Machinery with timely procurement decision support, and stocks raw materials in advance before the sharp rise in steel. The reverse is also true. Experts in easy-to-work products predict that steel will be lowered in the short term, and it is recommended to postpone or purchase a small amount, and purchase normally when it reaches a low level.

       At the same time, it is trapped by capital turnover and capacity issues. Yigong Products has provided financial support to Chaoyang Heavy Machinery through the risk control assessment of its own platform, which greatly eases the financial pressure of the company and has a good capital turnover. The operating strength has been rapidly improved, and it has quickly become a billion-dollar enterprise.

   Kennametal: Limited by objective environmental factors, it is difficult to expand emerging business sectors

  The world-renowned tool manufacturer-Kennametal, with its leading material technology and R&D and manufacturing capabilities, its products are widely used in transportation, aerospace, energy, construction machinery, general machinery and other metal processing fields. Constrained by factors such as external core shortages, "how to quickly expand the market share of emerging business segments" has become a key issue before Kennametal and Yigongpin's cooperation.

       Different from the transformation platform of traditional e-commerce or foreign trade service providers, the industrial product supply chain empowerment platform-Yigongpin, which is derived from the industry, has a deep understanding of the industrial industry, and is able to understand the needs of B-side customers while having a wealth of Supplier resources. Since March of this year, through the digital technology of Yigongpin and the support of its industry database, Kennametal's cooperation covers the branches of leading companies in various cities across the country, including Sany Group. In addition, Yigongpin has an in-depth understanding of Kennametal's demand, conducted targeted technical discussions and launched customized solutions to meet customer needs. It is believed that Kennametal’s market share in the construction machinery industry will increase to more than 10% just around the corner." Kennametal’s head of sales business Zhang Yongkang said.

   Great Wall Lubricants: Took off is an eternal core issue

   As a well-known brand of Chinese oil products, Great Wall Oils has a strong guarantee in terms of quality and performance. Faced with the eternal core problem of "how to find new customers", Great Wall Lubricants has made innovative attempts in the field of digital sales and opened up the "second battlefield"-that is, entering the Yigong product platform, which has been completely single from the past. The dealer model opens up platform sales channels. This has brought Great Wall Lubricants two major market competitive advantages: one is price, and the other is service.

   In the past dealer model, the downstream demand side actually bears a lot of additional intermediate fees due to the increase in the intermediate links. Since entering Yigongpin, the intermediate fee has been eliminated and the product has a more price advantage. At the same time, the 24h online instant service provided by Yigongpin itself can also track the whole process in a more timely manner, realizing pre-sales and after-sales. Rapid response; thanks to Yigongpin’s understanding of the upstream and downstream of the industry, the platform’s one-to-one expert team will also give specific guidance on the production and operation of customers.

       Tang Kai, deputy general manager of Great Wall Lubricant Huazhong Branch, gave an example: A large steel plant in Central China did not use Great Wall brand hydraulic oil and gear oil. In view of the evaluation of the equipment, service life and wear conditions used by the steel plant, the expert team also gave it A replacement plan for the replacement of Great Wall oil products came out. After some cooperation, the quality and low price of Great Wall oil products have been fully affirmed by the steel mills. Not long ago, with the assistance of Yigongpin, Great Wall Lubricants and Sany Group jointly developed a dual-standard oil. The success of this cooperation has enabled Great Wall Lubricants, construction machinery companies and Yigongpin to reach a "three The final result of "win".

       The advent of "Industry 4.0" puts forward new requirements for industrial transformation. The upstream and downstream industries of the industry need "smart factories", "smart production" and "smart logistics", which requires the optimization of production factors through data calculations in the upstream and downstream industries. , To enhance efficiency and empower the enterprise. Relying on the accumulation from industry, Yigong Products has deeply explored the pain points of the industry in the Industry 4.0 era. Through data empowerment, enterprises can fully and timely mobilize production factor rationing, financial and other support, logistics services, etc., have won the market reputation, and have also won the market reputation. The times have set a benchmark.

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