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July 4, 2019
In succession to steam engine, electrification and computer, intellectualization brought by massive data is ringing the bell of Industry 4.0. In the era of the Fourth Industrial Revolution highlighted by "Internet of Things", how will manufacturing industry face the challenges? As an industry leader and pioneer, the company, known as one of the “Lighthouses”, has made outstanding performance in adoption of the technologies of the Fourth Industrial Revolution and realizing manufacturing modernization. It has provided a path and direction for global manufacturers to draw on the experience.
From July 1 to 3, 2019 Summer Davos(also known as The World Economic Forum’s 13th Annual Meeting of the New Champions)featuring the theme of “Leadership 4.0: Succeeding in a New Era of Globalization” was held in Dalian. At this global event with a focus on innovation and entrepreneurship, the World Economic Forum identified a new list of Industry 4.0 “Lighthouses” leading in innovation. SAIC MAXUS became the only Chinese company being listed among them in the world. Lan Qingsong, vice president of SAIC Motor, attended the forum and made a speech. It was not only a recognition by the world’s authority for the world’s first new C2B（Customer to Business） customization factory—— SAIC MAXUS Nanjing C2B Factory, but also represents the recognition of SAIC MAXUS C2B user-driven business development mode by the World Economic Forum, as well as the reward for the Chinese wisdom contributed by SAIC MAXUS in the development of auto industry. It was also the first Chinese carmaker to be listed among Industry 4.0 “Lighthouses " in the world.
[The World Economic Forum’s Annual Meeting of the New Champions 2019（Summer Davos）]
[SAIC MAXUS Nanjing C2B Factory was awarded Industry 4.0 “Lighthouses”]
What is “Lighthouses”？ Industrial upgrading is a common global issue. In view of this, the World Economic Forum, in collaboration with McKinsey & Company, a worldwide management consulting firm, selected among 1,000 production sites and identified “Lighthouses”, which are world leaders in the successful integration of the cutting-edge technologies of the Fourth Industrial Revolution and in the large-scale adoption of new technologies. It was in a hope to play a leading role in the overall ecosystem of the manufacturing industry and help the global industry to get on the right track at the transformation crossroads. "Lighthouses” are demonstrations for “Digitizing Manufacturing” and “Globalization 4.0”, which boasts all necessary characteristics of the Fourth Industrial Revolution. They have improved the production system of traditional enterprises, innovated value chain of design, created new business models with overwhelming potentials and brought new economic value. "Lighthouses” are industry leaders in resetting standards, bringing inspiration to other companies, helping formulate strategies, improving labor skills, collaborating with other companies involved in the revolution, as well as managing various changes throughout the whole value chain.
After early-stage visit and comprehensive evaluation, the World Economic Forum and McKinsey & Company identified that SAIC MAXUS Nanjing C2B Factory met the standard of Industry 4.0 “Lighthouses”of "significant impact, successful integration of multiple usage case studies, extensible technological platform and excellence in key driving factors". Francisco Betti, Head of Advanced Manufacturing Industry at the World Economic Forum, Enno de Boer, Partner and Head of McKinsey & Company’s Global Manufacturing Practice, and Yves Giraud, Senior Expert of McKinsey & Company, visited SAIC MAXUS for a factory tour in Nanjing. SAIC MAXUS has been named by an independent expert panel part of the World Economic Forum’s Global Lighthouse Network of factories who are showing leadership in the Fourth Industrial Revolution. The jury commented："A challenging market environment drove this site to implement a new model for mass customization. Digitalizing the value chain end-to-end, from customers to suppliers, through an integrated digital thread resulted in improved sales and reduced costs. "
[The jury visited SAIC MAXUS NanjingC2BFactory]
[Jury’s comments to SAIC MAXUS Nanjing C2B Factory]
As an international auto brand of SAIC Motor, SAIC MAXUS is rooted in “New Four Modernizations”. SAIC MAXUS Nanjing Factory, the world’s first brand-new C2B customization factory leveraging SAIC Motor's strength, integrates the concept of C2B large-scale personalized intelligent customization into "SAIC Motor Manufacturing" and drives the entire manufacturing system to realize intelligent upgrading by user demands, contributing large-scale intelligent customization mode to the world, becoming one of the factories representing the highest technology and manufacturing level in the global manufacturing industry.
[SAIC MAXUS Nanjing C2B Factory]
It is reported that in addition to the latest list released by the World Economic Forum this time, "Lighthouses" include 16 industrial giants, such as Bosch, the world's largest supplier of automotive technology; Siemens, the world's leading supplier of electronics and electrical engineering.These lighthouse factories leading the future of manufacturing industry are all among the best in the globe. As a representative of global carmakers being on the list, SAIC MAXUS not only demonstrates its position as an innovator in the industry, but also showcases that SAIC MAXUS Nanjing C2B Factory is leading the trend of intellectualization, efficiency and customized large-scale production in auto manufacturing industry. It has provided a successful demonstration to build a smart factory for the global auto industry.
[in addition to the latest list being released, “Lighthouses" in the world also include 16 companies which were released formerly]
l Leading global manufacturing and becoming the "wind vane" of large-scale personalized intelligent customization
"The greatest value of C2B mode is to directly connect the two ends - ‘demander’ and ‘manufacturer’, so as to achieve a more flat business process," said Lan Qingsong at the forum.“It is a change from dealer touch point to a direct connection to the factory, and a change from the traditional one-off brand communication touch point to the establishment of follower relationship on the Internet.” In the traditional automobile production chain, standardized supply and standardized production are the tools to reduce cost and increase production capacity. Nowadays, personalized demands from consumers bring challenge to manufacturers first. As the world's first intelligent carmaker in C2B mode, SAIC MAXUS supports the personalized configuration selection for a massive number of users, and showcases the digital system and capacity to connect customers in full lifecycle of “Lighthouses”. If the global selection of “Lighthouses” has created a new runway for the world's industrial transformation, SAIC MAXUS is providing a method of large-scale customization transformation and upgrading for global auto companies through the C2B intelligent customization mode.
[SAIC MAXUS Nanjing C2B Factory]
The advantage of SAIC MAXUS intelligent production line lies in that from the development stage of the model, users can participate in the whole process. From forecast, user ordering, planning and scheduling, parts into the factory, to the whole vehicle production, quality inspection and shipment, "intelligent customization" concept has been demonstrated in the entire product lifecycle of SAIC MAXUS. Specifically, as early as before consumers placed their orders, SAIC MAXUS had communicated and interacted with users in real time from the early stage of product definition via its indigenously developed "Smart Spider". It breaks barriers of data in the process of product, user demand and manufacturing process, so as to accurately respond to personalized customization demands of users and ultimately realize the online digitalization of the company’s entire business chain.
[SAIC MAXUS Nanjing C2B Factory]
When the order comes to SAIC MAXUS Nanjing Factory, the stamping workshop, body workshop, painting workshop and assembly workshop, which integrates digitalization gene, will work together to create a “dream car” for users. At the same time, SAIC MAXUS relies on comprehensive manufacturing technologies based on network physical systems, Internet of Things, cloud computing and AI technologies, including the industry-leading engineering data intelligent analysis, digitizing production technology, digitizing quality management system, and digitizing supply chain. It drives the intelligent transformation of production lines, making production more transparent, efficient and intelligent, and can support up to 10 trillion models.
[Intelligent Manufacturing Platform of SAIC MAXUS Nanjing Factory]
[Digital Processing Management Platform of SAIC MAXUS]
SAIC MAXUS makes great efforts to apply digital production technology in production end.Take Intelligent Engineering for example，the system responds quickly and realizes the development of various configuration combinations through configuration manager and its computing services, innovative R&D tools and digitalized knowledge templates. "Smart Spider" platform offers four types of car selection modes, including "intelligent customization mode" and "geek customization mode", providing users with C2B services from product to service throughout the lifecycle. The digital quality management system realizes the coordination of assembly workers, automation equipments and production objects, and delivers the relevant information of each order to the manufacturing site efficiently and accurately. Among them, the digital processing management platform opens the whole process data transmission of the "product data - process development - on-site process guidance" through the seamless connection with the upstream and downstream systems. In digital supply chain, SPS platform distribution system and transparent stamping parts system are used to visualize the whole supply chain and logistics information, so as to improve logistics efficiency and customer satisfaction.
Innovative large-scale personalized intelligent customization model of SAIC MAXUS, combined with the capacity of manufacturing system characterized by digitalization, Internet of Things, intellectualization and flexibility, is releasing the industry’s development momentum in the transformation of new and old dynamics via digitalized transformation and innovation. It becomes a demonstration of transformation and upgrading of manufacturing industry, leading the innovation and development of auto industry in China.
l Winning favor from consumers, C2B intelligent customization mode boosts sales
Through C2B intelligent customization mode, consumers can customize their car according to their own demands and preferences. They can even send the demand sheet directly to SAIC MAXUS for production. All consumers need to do then is to wait at home, check the car upon delivery and pay at one go. However, this simple scenario requires the company to carry out a “"bone-changing" transformation and upgrading in the whole value chain of supply chain, production line, channel chain and IT architecture.
As a pioneer in promoting upgrading in manufacturing industry, SAIC MAXUS is transforming into a user-driven platform-based digital company. Big data from users drives it to continuously optimize organizational processes and business models, achieving a sound circle between users and the company. Since its establishment eight years ago, SAIC MAXUS has maintained a compound growth rate of 60%. The eye-catching sales achievement is indispensible from the support of digital transformation. In 2019, the sales of SAIC MAXUS has achieved steady growth. From January to June this year, the cumulative retail sales achieved a YOY growth of 15.7%. For the past six consecutive months, its single-month sales maintained growth. Take June for example, retail sales of SAIC MAXUS exceeded 10,000 units, totaling 11,158 units with a YOY growth of 47.85%. It has won wide recognition from Chinese and even global consumers.
[SAIC MAXUS sales maintained growth in past six consecutive months from January to June 2019]
A large proportion of orders for SAIC MAXUS are also created by "customization service". According to big data statistics, 30% of MAXUS users chose to use C2B intelligent customization mode to freely configure their own cars. More than 60% of G50 and D90 users, which are mainly private car owners, conducted online transactions. 42% of car owners have used “Smart Spider” before buying a car. If it narrows down to G50 and D90 owners, it is even higher, reaching 57% and 75% respectively. Consumers take a vote by their own wallet proving that a more interactive experience platform with higher user viscosity is popular.
[C2B large-scale personalized intelligent customization mode]
In the tide of Industry 4.0 continues,only by moving forward can we grasp the new opportunities brought by the birth of new technology to the manufacturing industry. and only by embracing "Internet thinking" firstly and gaining insight into deep demands of consumers, can we obtainthe advantage in advance. The significance of Industry 4.0 "Lighthouses" is not only an affirmation of pioneers, but also represents the responsibility of global industrial benchmark. SAIC MAXUS will continue to grasp the new requirements for automotive products and services in the new era, create a brand image and reputation of“Customization, Intellectualization, Internationalization, Younger” and gain competitive advantage in the new round of market competition in advance.
A list of "Lighthouses" in the world:
Haier (China), Bayer Biopharmaceutical(Germany),Bosch(Germany), Johnson&Johnson(USA), Phoenix Contact (Germany), P&G (USA), Schneider Electric (France),Siemens(Germany), UPS ( USA), BMW (Germany), Danfoss(Denmark), Foxconn(China), Rold(Italy), SANDVIK Coromant(Sweden), Saudi Aramco(USA), Tata Steel(India), SAIC MAXUS(China), Nokia(Finland), Posco(Korea), Groupe Renault (France), Arcelik(Romania), Zymergen(USA), Ford (Turkey), Petrosea(Indonesia).
SAIC Motor Corporation Limited (SAIC Motor)
SAIC Motor Corporation Limited (hereinafter as "SAIC Motor" with Stock Code: 600104) is the largest auto company ON China's A-share market, endeavoring to provide consumers with a full-range vehicle products and travel services.
SAIC Motor's car sales hit 7.0517 million units in 2018, achieving a YOY growth of 1.75%, further expanding its market leading advantages. Meanwhile, it ranked 36th on the annual Fortune Global 500 list, marking the 14th time that the company had made it onto the list.
Currently, SAIC Motor's main business covers the research, production and vehicle sales of both passenger cars and commercial vehicles. The company is actively promoting new energy vehicles, the commercialization of Internet-connected cars. It is exploring intelligent driving technology research and industrialization. It is mainly engaged in the R&D, production and sales of parts for motor drive system, chassis system, interior and exterior decoration, battery, electric drive, power electronics and other new energy vehicles and the core components of the intelligent product system); auto-related services such as logistics, e-commerce, travel, energy saving and charging service; auto-related finance, insurance and investment services; overseas business and international trade; and the layout of industries of big data and artificial intelligence.
SAIC MAXUS Automotive Co., Ltd.
SAIC MAXUS Automotive Co., Ltd (hereinafter as "SAIC MAXUS" ) is a wholly-owned subsidiary of SAIC Motor Corporation Limited. Through business model and commercial model innovation, SAIC MAXUS dedicates to be crossover carmaker “driven by users, providing automobile products and lifestyle service with global competitiveness and creating value for users” and becomes an industry leader in domestic market and a strong competitor in global market.
Adhering to the concept of“Intelligent Customizability, Intelligent Connectivity, Intelligent Mobility and Intelligent Sharing“, SAIC MAXUS pioneered in introducing C2B large-scale personalized intelligent customization mode into auto industry and became the first carmaker to implement C2B strategy. Through the Internet and cloud computing, it realizes digitalized connection among enterprises, users and partners. Users can participate in data interaction and decision-making of the whole value chain. It establishes a life-long relationship with users warmly and create customized products and services for consumers. .
After eight years of accumulation and rolling development, SAIC MAXUS deeply rooted in segmented market and developed from launching one product every two years in its early stage to launching two brand-new products each year today. It has formed five vehicle platforms + new energy vehicle business + RV travel platform, providing consumers with an overall experience solution and creating the eye-catching “MAXUS Speed" within the industry. Currently, main business of SAIC MAXUS includes products matrix featuring MPV, SUV, RV, wide-bodied light passenger vehicle, pickup, new energy vechcles, as well as other light and medium van, special purpose vehicles of "SAIC Yuejin".
As an international brand of SAIC Motor, SAIC MAXUS has maintained its fast growing momentum in sales. SAIC MAXUS is honored to have served APEC, G20, the Youth Olympics, Boao Forum for Asia and other high-level international conferences with its state-guest-level quality. In terms of overseas market, SAIC MAXUS has preliminary established its global distribution network and formed five core markets. Its products cover 46 countries and regions in the world. With Australia, New Zealand, UK, Ireland and other developed countries contributing most to overseas sales, SAIC MAXUS is becoming a Chinese brand marching towards the world.