How China Is Using Supply Chain Technology to Make Your Business More Efficient

2021-06-21

插图一.jpgIntroduction

Global competition for business dominance is becoming intense. Post the Covid-19 pandemic, companies are looking for new avenues to increase their profitability. Global sourcing is a key strategy that helps companies to achieve cost competitiveness. China is undoubtedly the most preferred sourcing destination for all major companies. With a network of high-quality manufacturing clusters, China exported goods worth US$2.59 trillion in 2020. Apart from the well-developed manufacturing facilities, it has a highly efficient supply chain system.

In the past, China relied heavily on its manpower for every aspect of procurement and supply chain. This has several limitations, especially while dealing with large volumes for global procurement. Now there is a major shift towards adopting high-end technologies in supply chain management. This is evident from the huge popularity of supply chain software for process automation. Beyond this, there is an increase in the use of data analytics for decision-making. With these new developments, Chinese companies are all set to rule the global procurement scene providing quality products. If you are looking for China sourcing, check out these recent trends in supply chain management in the country, and learn more about the guide of finding China sourcing agent here.

China’s distribution capabilities can put you at the top

Being a top global sourcing destination, China has a strong focus on developing its distribution capabilities. Along with the creation of multiple manufacturing hubs, the development of a proper supply chain system is of prime importance. In recent years, the government’s focus on developing a robust supply chain system is quite evident. The country has a wide network of warehouses and product storage facilities. Similarly, t numerous highways and roadways allow seamless material movement across the country.

The most significant aspect of China’s distribution system is the use of innovative technology. From the old concept of cottage industries, all the major manufacturing hubs have moved to smart manufacturing. Technology integration helps these companies in fulfilling their product delivery commitments efficiently. This makes it the perfect destination for companies looking to procure products from a China source. Let us explore the features and benefits of the distribution system in China.

What does the distribution network in China look like?

China has a well-developed distribution network that runs throughout the country. This spans across both urban and rural manufacturing clusters alike. As a result, companies get more options to source their products on time. Moreover, there is a considerable reduction in the lead times. The main features of the distribution network are: 

Efficient infrastructure

China has a huge network of high-quality distribution infrastructure. It has a chain of warehouses and special storage systems that are spacious. With a strategic location, they reduce transportation time and cost. These places integrate technology that enables remote monitoring. The use of temperature and humidity control systems in the storage facilities reduces any chance of product damage also.

High level of interconnectivity

The major advantage of China is the strategic location that enables easy shipping and logistics. Beyond international seaports, domestic connectivity is also very important. China has a strong network of rail and road infrastructure that enables seamless movement of cargo.

Automation

The automation of distribution networks is placing China way ahead of other sourcing destinations in Asia. The use of software, GPS systems, and factory automation is making the system highly efficient. For global clients, this is an effective mechanism to monitor the entire sourcing activity remotely. Automation also enhances the pace of material movement with a considerable reduction in wastage.

Multiple logistics operators

With multiple government incentives, numerous domestic companies are foraying into logistics and distribution. With an increase in competition, there is a considerable reduction in distribution costs. For companies, this can bring down their overall cost of procurement. Additionally, they have a wider pool of operators to choose from.

The distribution network in China is undoubtedly the best in the world. Most of the existing manufacturing facilities are already well-connected with this system. However, it is advisable to select these services with proper guidance from a China sourcing agent.

Benefits of using China’s distribution network

The well-developed distribution network is a real boon to global clients during sourcing. The benefits of using this distribution network are:

  1. Low cost of procurement

  2. Lower lead time

  3. Reduction in product wastage

  4. Options for remote monitoring

插图二.jpgBig Three Tech – China’s supply chain technology

A high level of technology innovation is an enabler in transforming businesses. Time and again, technology innovation is bringing in drastic efficiency improvement. This trend is visible in both manufacturing and services sectors alike. China, as a global sourcing destination, always focuses on embracing new technology to attract global clients. As a result, most Chinese companies already possess numerous critical technologies. With an increase in demand for China sourcing, companies are now looking for technological innovation beyond basic manufacturing.

More global companies are looking to source products from China. But many of them see geographical location as a barrier. Most often, these corporations fear supply chain disruptions that deter their sourcing china activities. Optimizing the supply chain is a key step that can make your China sourcing activity a success. It brings in considerable price reduction and saves a lot of your valuable time. Additionally, technology and automation pave the way for better quality control. While sourcing your product, a china sourcing agent can help you in choosing a manufacturer with robust supply chain technologies. Let us explore the various supply chain technologies prevalent in Chinese companies.

The emerging trend of 3D designs

Technology-aided product design is the buzzword in manufacturing. This, along with instant 3D printing technology, is revolutionizing the aspects of supply chain management. In China sourcing, finalizing the product design is a crucial step. During sourcing, global corporations often struggle to communicate the precise product requirements. Language barriers and variations in technology standards make this process more complex. With the advent of 3D designs, designers can easily communicate with their counterparts in China. Using 3D designs, the creation of product samples becomes easy. These designs help the client in inspecting the product remotely without the physical product. It saves a lot of time and materials. It also avoids delays in product sample transportation.

The most important feature of 3D designs is their ability to achieve a high level of precision. The old method of hand-drawn design sheets often fails to reproduce precise product dimensions as per the client’s requirements. Usually, design sheets undergo multiple revisions before the production of the prototype. Three-dimensional designs eliminate this by aiding quick decision-making.

Virtual reality

Chinese manufacturing ecosystem is ahead of other countries in adopting emerging technologies. Due to this, China remains a favorite sourcing destination for companies in the U.S and the European Union. Virtual reality provides a real-time interactive experience without physical presence. In China, product exhibitions post the Covid-19 pandemic is already using VR technologies. It helps in complying with travel restrictions and social distancing that are part of the safety protocols. For companies, an immersive experience through remote technologies helps a great deal in sourcing activity. With virtual reality, experts from a company can evaluate product designs without a factory visit. Companies can save money by avoiding such visits to China.

Inspections through VR devices provide an immersive experience similar to an actual factory visit. Through this technology, quality personnel can inspect both the product and the machinery at a manufacturing facility in China. The virtual reality technology is highly collaborative and supports options for real-time feedback.

Big data and analytics

Mechanization is taking over every aspect of production. But what does it take to make machines smarter? Big data is possibly the main tool that analysts use for optimizing machine operations. China is already moving towards making its production units into smart manufacturing hubs. The bulk amount of data from the machines can help in designing efficient processes. In supply chain management, big data provides insights on relevant parameters in logistics and transportation. The insights from big data analytics are enabling machine learning and artificial intelligence technologies. 

Every point in the entire supply chain generates data as the product moves from the factory to the final delivery point. It helps in continuous feedback and improvement. While dealing with the supply chain, time management is of prime importance. Using big data analytics, time estimation, and route optimization for bulk transport becomes easy. If you are planning for products from a China source, you can expect faster delivery. For this, always partner with an expert China sourcing agent to select the appropriate manufacturing facility.

'Internet Plus’ initiative

Today, the internet is the thread that connects all new technologies. Smart manufacturing, IoT (Internet of Things), virtual reality, etc., makes sense only with the availability of high-speed internet. In China, this is very crucial for manufacturing hubs that are scattered throughout the country. Post-2015, the Chinese government promoted ‘internet plus’- a dedicated program for developing internet services across the country. It includes the creation of infrastructure, new devices, and higher bandwidths. Through the project, China wants to provide high-speed internet capabilities for all industries.

With increased internet capabilities, companies can optimize every aspect of their supply chain. With the advent of the internet plus, big data analytics is now playing a crucial role in streamlining the supply chain. As a result, global clients can expect lower transportation costs and faster product delivery. The availability of broadband internet even in the rural manufacturing hubs makes sure that corporations can access more options for sourcing China-based products.

24515563 copy.jpgHow technology integration into the Chinese supply chain benefit your company?

As a business organization, timely delivery of quality products is very crucial for your profitability. While sourcing products from China, challenges in the supply chain can be very risky. Any disruptions in the supply chain can prove to be very costly. Manual operations across various manufacturing functions will eventually lead to supply delays and wastage. But thanks to technology, most Chinese companies have successfully adopted innovative technologies in their processes. However, you should always select the best manufacturing partner for your China sourcing activity. A trustworthy China sourcing agent can assist you in selecting the appropriate manufacturing facility.

Companies with technology integration in their supply chain are capable of providing the best quality products within short periods. A manufacturing partnership with a company that integrates high-end technology is surely going to be beneficial for your business growth. It provides you with better control over the entire sourcing process. The major benefits of technology integration in the supply chain are,

Monetary benefits

An integrated supply chain that uses innovative technologies is a game-changer in global sourcing. It provides numerous benefits that a traditional supply chain approach can’t achieve. With an integrated approach, manufacturing facilities can optimize their operations. Due to this, a company can achieve huge cost savings in every batch of production. While using 3D technologies, companies can achieve high levels of precision. This eventually leads to a considerable reduction in material wastage that brings down overall production cost.

With the effective use of data analytics, a company can schedule shipments in a better way. As a result, you can expect some savings in shipment costs also. In short, technology is a key enabler in your China sourcing activity.

Shorter delivery time

Supply chain delays create a huge bottleneck in the timely delivery of materials. Lack of digitization and automation are the main reasons for supply chain congestion. Due to these delays, companies often incur huge losses. Beyond monetary issues, it can negatively impact the brand reputation of your company. With the integration of technology in the supply chain, there is greater efficiency in every step of the production process. The aspect of 3D design helps in finalizing the product prototype at a faster rate. This also facilitates remote collaboration leading to better decision-making. Moving on to logistics, data analytics computes the optimal route for shipping a product with automatic scheduling. In short, you can expect fast delivery of your products with better technology integration.

Greater access to different types of products

In the past, Chinese manufacturing hubs relied heavily on manual processes. This strategy is suitable for fulfilling domestic supply requirements. With an increase in global sourcing activity, there is a tectonic shift in Chinese manufacturing strategy. Nowadays, technology plays a significant role in enabling the manufacturing ecosystem. The tech-enabled manufacturing system provides you with a wider choice of products. From design to actual production, computer-based systems provide flexibility in every step. Moreover, production lines are not dependent on manual labor. This helps companies in expanding their product portfolio. They also have greater autonomy in providing high levels of customization. With these capabilities, even rural manufacturers can showcase a wide variety of products within a short period.

Ability to avoid problems en-route

Your China sourcing activity is a success only when the required quantity of product reaches its destination. Proper logistics and shipping are critical in completing this process. Any delays in this can negatively impact your procurement. Many new-age technologies are enabling better planning and scheduling of logistics. From warehouse management to real-time tracking, software packages provide complete digitization of these activities. As a result, you can manage all these activities with high efficiency leading to significant time savings. AI models based on big data analytics help in predicting possible bottlenecks in your shipping process. They are also capable of suggesting better solutions for mitigating these issues. In a way, such systems analyze multiple data systems for predicting the future. Remote collaboration is a feature that is inherent in these supply chain technologies. With this, conflict resolution and problem-solving become much easy.

Ability to control product quality until it reaches the buyer

Global sourcing is beneficial for your company in various aspects. The low cost of procurement is a significant aspect that makes global sourcing very attractive. While the low cost of procurement can fuel your business profitability, quality control is equally important. The integration of technology in the supply chain helps in better control over the quality process. Right from the design stage, remote collaboration allows you to communicate well with the manufacturing partner. The use of virtual reality and 3 D design is helpful in this process.

Conclusion

Global sourcing activity involves numerous steps that include due diligence, factory visits, documentation, logistics, etc. In the case of China sourcing, cultural and language barriers can make these processes more complex. At this juncture, a China sourcing agent can help you in every step of product sourcing. Maple sourcing is a leading China sourcing agent with expertise in handling product sourcing. Since 2012, the company is actively helping global corporations with their sourcing activity across multiple product lines. The company works with high-quality manufacturers in consumer electronics, hardware, sports equipment, gift products, etc. The team of experts from Maple sourcing matches you with the best manufacturing facilities in China as per your specific product requirement. With a local presence in Shenzhen, the team handles documentation (English and Mandarin) and factory inspection on your behalf.

If you are looking to source products from China, Maple sourcing is the best option. For more information, check out the website today itself.


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