During this year's Two Sessions, the modernization of industrial system and new quality productivity were included in the government work report and listed as the top ten work tasks for 2024. This sends a clear signal, highlighting China's emphasis and urgency on accelerating the construction of a modern industrial system and promoting stable industrial operation.
At the same time, the government work report also proposes to accelerate the promotion of new industrialization and improve total factor productivity. As a key infrastructure in the industrial industry, the supply chain is an important part of promoting new industrialization. In the new stage of development, how can traditional industries promote new industrialization? Promoting the development of new quality productivity? How can chain owners and digital supply chain technology service platforms collaborate together to improve the efficiency of the supply chain?
On the evening of March 9th, during the economic policy live broadcast of the New Beijing News and Shell Finance two sessions, Chen Esheng, Vice President of JD Group and Head of JD Industrial Manufacturing Business, believed that new quality productivity not only involves innovation in production technology and methods, but also lies in technological innovation in industrial coordination, and the latter is equally important as the former's innovation. Accelerating the development of new quality productivity and promoting the digital upgrading of supply chains are important measures to promote the high-quality development of the manufacturing industry. It requires the joint efforts of the government, enterprises, and all sectors of society to strengthen cooperation.
New industrialization has become a key task, and all sectors should increase their support for the digital upgrading of the supply chain
As a key infrastructure in the industrial industry, the supply chain is an important part of promoting new industrialization.
Chen Esheng stated that new industrialization is a key task, and new quality productivity is the ultimate goal. He emphasized that in the context of industrial Internet, improving the synergy efficiency of the industrial chain is the core point to promote the exponential upgrading of supply chain enterprises. Through the application of digital technology, the operational process of the supply chain can be optimized, and the response speed and flexibility of the supply chain can be improved, thereby creating greater value for enterprises.
He stated that the digital and intelligent development of the supply chain plays an important role in the digital transformation of the manufacturing industry. With the continuous progress and application of technology, digitalization of the supply chain has become an inevitable trend for the transformation and upgrading of the manufacturing industry. Through the application of digital technology, real-time data collection, analysis, and application of various links in the supply chain can be achieved, improving the transparency and traceability of the supply chain, and providing strong support for enterprise decision-making.
Chen Esheng also mentioned that in the face of a new round of technological revolution and industrial transformation, enterprises need to actively embrace digital transformation, strengthen technological innovation and talent cultivation, in order to adapt to the rapid changes in the market. At the same time, the government and all sectors of society should also increase their support for the digital upgrading of the supply chain, promote the research and application of related technologies, and provide strong guarantees for the transformation and upgrading of the manufacturing industry.
Chen Esheng stated that accelerating the development of new quality productive forces and promoting the digital upgrading of supply chains are important measures to promote the high-quality development of the manufacturing industry. It requires the joint efforts of the government, enterprises, and all sectors of society to strengthen cooperation and jointly promote industrial development and technological progress.
Digital procurement promotes the digital transformation of physical enterprises, with hidden costs becoming the key
Comprehensively enhancing the modernization level of the industrial chain is an inevitable requirement for high-quality development. Enterprises are the main force in building the industrial chain.
"JD Industrial has supported 6900 large enterprises and more than 2.6 million small and medium-sized enterprises in China. Based on factors such as the attributes, development stages, and regions of different industries, we have found that there are differences in the development of supply chains among different enterprises." When it comes to the difficulties in the current digitalization process of traditional industrial supply chains, Chen Esheng said that the common difficulty is the standardization of data. How can we digitize and complete the process from large automobile manufacturers, From core components to small and medium-sized enterprises producing nuts, we ensure that the entire data link is connected for the production of every car and every electrical appliance.
He believes that commodity standardization and material governance are key to the digital transformation of the supply chain. Only by establishing unified standards can we reduce information silos, achieve resource sharing, improve collaborative efficiency, and reduce social costs. As a provider of industrial supply chain technology and service solutions under JD Group, JD Industrial has also been investing heavily in coding standardization as an important task. As early as 2020, JD.com Industry created the Mercator Standard Commodity Library. This is a unified set of product parameter definitions developed using artificial intelligence deep learning technology to analyze the categories and attributes of standardized products, guidance information from product manufacturers, product information collected from supply chain participants, and the knowledge and experience of industry experts.
Chen Esheng stated that using digitization and intelligence to accurately link the supply and demand ends is the core of digital supply chain cost reduction and efficiency improvement. Enterprises should not only focus on their own digitalization, but also take a broader view of the entire industry chain, including upstream suppliers, downstream users, etc. He believes that through JD Industrial's IPNP (Industrial Performance Neuroscience Project) solution, efficient collaborative linking and full chain digitization can be achieved, allowing more data to flow and less goods to flow, thereby further improving overall efficiency.
The current new industrialization has become a consensus for the development of the industrial industry, and the digitalization of the supply chain is one of the indispensable elements of the new industrialization. Meanwhile, in promoting the digital transformation of physical enterprises, digital procurement is also a good entry point.
Chen Esheng bluntly stated that digital procurement has a direct impact on enterprise costs. In the procurement process, in addition to the explicit cost of purchasing goods, the implicit costs distributed in various links of the supply chain, including supplier management, logistics performance, pre-sales and after-sales, have become important factors determining the realization of cost reduction and efficiency increase for enterprises.
He also stated that as a system, the pursuit of the supply chain is not to minimize the cost of any link, but to coordinate all links to achieve the best overall efficiency and cost. Therefore, in the process of digitalization in procurement, we cannot only consider local aspects, but should start from the entire chain of goods, procurement, performance, operation, etc., to achieve global digitization.
Breaking down the information barriers upstream and downstream of the industrial chain, chain owners have the responsibility to support small and medium-sized enterprises in the industrial chain
Industry is the core and key to economic development, as well as the foundation for the rise of great powers. Starting from 2023, departments such as the State owned Assets Supervision and Administration Commission and the Ministry of Industry and Information Technology will actively promote the integration and development of the industrial chain and supply chain.
When it comes to how to collaborate with chain owners as a supply chain technology and service platform, ultimately achieving the goal of improving overall efficiency, Chen Esheng mentioned the three keywords of openness, linking, and sharing. He stated that as a supply chain technology and service platform, it is necessary to maintain a close collaborative relationship with chain owners, reduce explicit and implicit costs through digital means, improve data quality and standardization level, Thus achieving the goal of improving overall efficiency.
He said that to accelerate the landing of industrial Internet in traditional industries, it is necessary for chain owners and industrial Internet platforms to jointly break through the information barriers in the upstream and downstream of the industrial chain, promote efficient data exchange and sharing between different systems and platforms, so as to break the information island, improve the synergy efficiency of the industrial chain, and drive the development of SMEs in the industrial chain.
"Chain owners have the responsibility to support small and medium-sized enterprises in the industrial chain, so that the market can see more than the success of the leading state-owned enterprises." Chen Esheng mentioned that it is necessary to take the digital procurement of central enterprises and state-owned enterprises as a breakthrough, encourage chain owners to strengthen cooperation with the industrial Internet platform, establish an efficient collaborative innovation mechanism between chain owners - service platforms - small and medium-sized enterprises, and promote industrial cluster development and collaborative innovation. JD Industrial aims to build a digital highway that spans different industries and is compatible with different types of materials, allowing data to flow more and products to run less,
In recent years, the impact of the epidemic and the constantly changing international economic environment have brought breakthrough challenges and changes to the global supply chain. The optimization strategy of supply chain and global digital transformation are undergoing changes. Efficient optimization and management of the supply chain are widely recognized as the key to the success of enterprises going global.
When it comes to going abroad, Chen Esheng said that JD.com will work with China's large manufacturing industry to leverage the global shipping network and local warehouse network built by JD.com's new infrastructure to connect the entire chain of trunk transportation, overseas warehousing, end of line distribution, and after-sales service, helping overseas factories and businesses quickly enter foreign markets and do a good job in accompanying overseas shipments.
Cheng Zijiao, a reporter from New Beijing News and Shell Finance