In today's business environment, competition in the supply chain has become a key competitive element among enterprises. Especially with the development of globalization and digitalization, supply chain management has become the key to the success of enterprises, which is not only a simple logistics and procurement problem, but also the core of the company's overall strategy and competitiveness.
As a leading multinational group of industrial equipment in China and with important influence in the world, Shandong Heavy Industry Group has a unique power chain and vehicle chain in the global industry, and has built high-end equipment manufacturing industrial clusters in 10 cities in Shandong Province, and is also the "chain master" enterprise of four industrial chains in Shandong Province. So how to ensure the safe, efficient and smooth operation of the enterprise? Supply chain is key. On June 27, 2024, Chairman Tan Xuguang's speech at the group's supply chain management work conference allowed us to see Tan Xuguang's deep insights into supply chain management.
At the meeting, Tan Xuguang clearly pointed out that supply chain management is a strategic work. If enterprises want to become world-class, they must win the tough battle of improving the competitiveness of the supply chain. To this end, Tan Xuguang summarized the experience of visiting world-class enterprises in recent years, and put forward the "20-word methodology" of enterprise supply chain management, that is, "self-oriented, chain innovation, loyalty and reliability, safety and controllability, and strategic win-win". In accordance with this and positioning, it is proposed to accelerate the construction of an efficient, safe, globalized and sustainable new supply chain system, and vow to activate new quality productivity with a new supply chain.
It is imperative to build a "self-centered" supply chain. In recent years, some domestic enterprises have frequently encountered some crises due to the failure or even rupture of the global supply chain. This reflects that in the context of the new world development trend and the development of the continent entering a new stage, the traditional supply chain development pattern characterized by integration, following and catching up has become unsustainable, and it is necessary to build a new supply chain development situation characterized by leading, innovation and transcendence. This time, Tan Xuguang proposed to build a "self-oriented" supply chain, which is to get rid of external threats and control. Up to now, Shandong Heavy Industry Group's domestic business, overseas business, and product exports have formed a strategic balance structure of 4:3:3, and it can be said that the entire group has been deeply embedded in the global value chain. In this context, the construction of a "self-oriented" supply chain can more effectively obtain the benefits of global division of labor and cooperation, and can also dominate the governance of the value chain to a greater extent, and reasonably control its core technical links and value-added links. At the same time, in the face of various internal and external sudden shocks, it can achieve self-circulation to ensure the safe operation of the enterprise under extreme circumstances.
Working with supply chain partners to "chain innovation" is the key to becoming a world-class strong enterprise. At present, with the rapid development of new technologies such as new energy and artificial intelligence, no world-class enterprise can cope with the "explosive" scientific and technological revolution alone, and it is impossible to achieve full supply chain manufacturing. If the downstream enterprises of the industrial chain make cars behind closed doors, simply command the upstream, and do not study the needs of end customers, it will lead to the entire industrial chain being unable to lead the market, let alone build a world-class brand. As a global leader in new energy vehicles, Tesla has a remarkable performance in collaborative innovation with supply chain partners. Tao Lin, Tesla's global vice president, said in an interview with the media that Tesla's manufacturing advantages are inseparable from China's strong and perfect supply chain system and the collaborative innovation of supply chain partners. "At present, Tesla's Shanghai Gigafactory has achieved a localization rate of more than 95%. It is precisely because of the collaboration with China's local supply chain enterprises to improve the technical level, quality standards and production capacity that Tesla's rapid growth path has been created. "Open cooperation and chain innovation have always been the direction of Shandong Heavy Industry Group and its supplier partners. In recent years, Weichai Power Chain has cooperated with upstream and downstream enterprises, adopted the whole industry chain to tackle key problems, and broke the world record for the thermal efficiency of diesel engine body for four consecutive times, winning the respect of the global industry and becoming a key factor for Weichai Power to become a world-class enterprise.
Cultivating "loyal and reliable" suppliers is an important part of supply chain management. The quality, price, and delivery cycle of parts and components determine the quality, cost, and production cycle of the product to a large extent. The greater the proportion of outsourced and purchased parts in the product, the greater the degree of this decision, and the quality, cost and delivery time of the parts depend on the supplier. Therefore, loyal and reliable suppliers are the basis for achieving high-quality products. At present, Shandong Heavy Industry Group has problems such as "poor supplier level" and "fat supplier quantity", and cultivating "loyal and reliable" suppliers has become an important part of supply chain management. Because of this, Tan Xuguang pointed out that it will take three years to optimize the number of suppliers of the group from more than 6,200 to 3,000, and increase the introduction of international and domestic head suppliers. For some suppliers, Shandong Heavy Industry Group's optimization of suppliers may bring fluctuations in business operations, but for Shandong Heavy Industry Group, this move is a necessary move to identify and build an excellent and loyal supplier team, and is an important step to ensure product quality, maintain a good brand image and improve business efficiency.
Achieving a "safe and controllable" supply chain is an inevitable choice for enterprise development. At present, multinational companies have formed complex supply chains and networks through the global layout of supply chains. As an integral part of the global supply chain, the supply chains of various countries are linked by interests, mutual influence, interdependence and interaction. Because multinational companies cannot achieve effective control over the transnational supply chain, and the operation of the supply chain may get out of control, the supply chain security has become a matter of great concern to the state and enterprises. Therefore, the establishment of a "safe and controllable" supply chain is an inevitable choice for enterprise development. "Safe and controllable" means that for some supply chains, although we cannot dominate, we must have greater control and influence. For enterprises, the purpose of achieving supply chain security and controllability is to ensure the smooth operation of enterprises, realize the safety of enterprise development and national economic security. Shandong Heavy Industry Group, as the "chain master" enterprise of the mainland's power equipment industry, must have the responsibility of "walking in the front and taking the lead", and take multiple measures to make up for shortcomings and forging long boards as a whole, and increase work efforts. Because of this, Tan Xuguang pointed out that in the face of strategic scarce resources, it is necessary to establish a "dual supply chain" system, which must not only cooperate strategically with international suppliers, lock in resources, but also make a spare tire plan to ensure that it is not "stuck". At the same time, from the perspective of strategic transformation and security, it is necessary to promote in-depth R&D collaboration with first-class suppliers, and accelerate the control of key core technologies and products that will lead the future around cutting-edge technologies, new energy, and intelligent networking in the industry.
Achieving "strategic win-win" is the ultimate goal of the new supply chain. The supply chain is a "win-win chain" and a "cooperation chain". Tan Xuguang has repeatedly emphasized the importance of the supply chain in public. He once said, "We and our suppliers are a community of interests, with common customers and common values. It is our greatest dream to expand our common cause. The supply and demand sides are not a zero-sum game, and the industrial cake will be bigger in competition and cooperation. Let suppliers make money, so that customers can enjoy value. It is precisely because the majority of supply chain partners have always been regarded as a community of shared future that Tan Xuguang proposed the "four strategies" transformation plan of the new supply chain at the conference. That is, from the buyer-seller relationship to the strategic community, from cost-driven to customer value-driven, from "firefighting" procurement to positive system planning, from the traditional procurement model to the smart supply chain. In this regard, Tan Xuguang said that in the new supply chain in the future, the relationship between Shandong Heavy Industry Group and suppliers is not a zero-sum game between Party A and Party B, but a strategic community, a value community and a community of destiny for win-win cooperation.
American urbanist Lewis Mumford famously asserted that "the hope of the city lies outside the city." It means synergy between urban agglomerations, which is of extraordinary significance for the development of a single city. The future of the supply chain is also both inside and outside the "chain". Facing the 2030 strategy and the vision of building a world-class enterprise, Tan Xuguang proposed to accelerate the construction of a new supply chain that is more stable, smooth and efficient, open and inclusive, and mutually beneficial. It is believed that in the near future, Shandong Heavy Industry Group will further extend and strengthen the chain on the basis of stabilizing the chain, expand the "circle of friends" for win-win cooperation, strengthen the value chain of chain innovation and innovation, and continuously improve the resilience of enterprise development and gather surging new kinetic energy. (Reporter Wang Mingyu)