Special event for PTC ASIA 30th Anniversary - CEO Interview ——Anhui Jixi Huishan chain transmission Co., Ltd.
Anhui Jixi Huishan chain transmission Co., Ltd.
Ye Zhihua General Manager
Focusing on the PTC ASIA 30th Anniversary, the special event for PTC ASIA joins hands with PTC ASIA exhibitors to discuss market trends around the industry focus. This event will successively visit senior corporate figures to share their experiences and uncover the stories behind the products. In special times, help our industry and increase confidence and strength for our industry!
ANHUI JIXI HUISHAN CHAIN TRANSMISSION CO., LTD.
PTC ASIA Team: The year 2020 is a challenging year. How do you see the profound impact of the epidemic factors on the basic component parts industry?
Mr. Ye: The COVID-19 that began to spread rapidly in January 2020, made the demand of basic industries and production suddenly slowed down, which has led to low consumption, poor investment and low export. The main problems were:
(1) Resumption of work has delayed and production has blocked. Local governments have issued notices to postpone the resumption of work, and over 90% of the basic parts and components industry`s factories have generally extended the resumption of work and production, resulting in a reduction in actual production time;
(2) Traffic restrictions lead to difficulties in logistics and transportation. After the outbreak, inter-provincial logistics was basically suspended, as a result - poor transportation of raw materials, spare parts, and outsourcing parts, making it difficult to guarantee production.
(3) At all levels of work resumption in the industry was not smooth, and the supply chain could not be guaranteed. Due to different epidemic prevention and control situations across the country, and different periods of suspension and resumption of production, led to the difficulty to match production and supply on all enterprise`s levels. (For example, our company has resumed normal production, but the steel production supplier's area has not resumed, resulting in a shortage of raw materials for our company and cannot keep up with production demand.)
(4) The return of funds was decreasing, and the capital chain was strained. Affected by the epidemic, the domestic and foreign markets and production have been stagnated for a long time, causing problems such as damaged orders, delayed delivery, delayed payment of goods, etc. However, the company still needs to pay normally for employees` wages, daily office costs, and raw material costs, which increases the company`s financial pressure.
(5) The impact of foreign trade exports. Due to the end of the foreign epidemic situation, many foreign business partners have cancelled or delayed the delivery of existing orders, which has caused the cost pressure of increased product inventory of enterprises and the problem of sudden reduction and suspension of foreign trade orders
In addition to the above five general problems, companies with most non-local employees have encountered problems such as difficulty in returning to work for home and lacking of the epidemic prevention materials. As the relevant national and local government departments issued a number of support and rescue policies, industry enterprises began to gradually resume production and operation in the second quarter, and the economic status of the industry was basically stable. The epidemic in 2020 brought to the component manufactory industry the temporary economic stoppage, also has released a potential market for the industry and brought new opportunities for the entire industry's industrial structure, transformation and upgrading.
ANHUI JIXI HUISHAN CHAIN TRANSMISSION CO., LTD.
Mr. Ye Zhihua General Manager
PTC ASIA Team: As the beginning of China's 14th five-year plan, on the premise of adhering to the strategy of expanding domestic demand, the government advocates the promotion of both domestic and international cycles. What do you think of this issue? Will your company adjust sales targets n of domestic and foreign markets?
Mr. Ye: During the "two sessions" in late May 2020, Xi Jinping's general book emphasized that it is necessary to "gradually form a new development pattern with the main body of the domestic cycle and the domestic and international dual cycles. The "main body of the domestic cycle" emphasized by President Xi is not "closed doors to build cars", but "taking domestic demand as the starting point and foothold of development, speeding up the construction of a complete domestic demand system, and vigorously promoting technological innovation and other innovations. Accelerate the promotion of strategic emerging industries such as digital economy, smart manufacturing, life and health, and new materials, form more new growth points, growth poles, and strive to open up production, distribution, circulation, and consumption." In general, it is domestic demand. As a strategic base point, to better connect and utilize the domestic and international markets, two resources. As a large developing country, China’s future industry, science and technology policies must make good use of the huge domestic demand and use it as the strategic basis of the new dual-cycle development pattern, incentivizing enterprises and local governments to develop strategic emerging industries while expanding domestic demand, and establish modern industrial chains and industrial chain clusters featuring independent innovation. The outbreak of the COVID-19 in 2020 has stimulated the global multinational companies to reorganize their global industrial chains horizontally and vertically. At the same time, it provides a major opportunity for economic activities to move from the physical world to the digital world. For example, for the electronic machinery and chemical industry, it is possible to increase the popularity of the Internet of Things and information technology, and to improve the level of automation, which can reduce losses and ensure safe production. Another example is that the replacement of people with machines is in an important time window in the process of industrialization of human society. Artificial intelligence technology can be used to promote the upgrading of labor-intensive industrial chains, which will not only help reduce company`s labor costs, but also promote labor productivity and product quality.
Nowadays the company has newly added two production lines and added 25 sets of automation equipment. Through the ERP and MES systems, the planning and scheduling, production`s logistics, process execution, process quality, equipment management, etc. are carefully controlled. All products and raw materials are registered in ERP with unique code, which are automatically synchronized with the MES system; the MES system uses batch bar code to manage the whole process from raw material receiving, warehouse turnover, workshop distribution and production warehousing. Quickly carry out operations such as raw material receiving, production confirmation, production flow, and finished product storage by bar code scanning. When materials and semi-finished products arrive and are produced, they are given a unique ID through the MES system, and are bound to the corresponding batch, batch number, and serial number by means of barcode; in the process of production circulation and logistics turnover, pass the combination of barcode scanning, MES intelligent terminal, and SCADA data collection records and binds the comprehensive information of people, machines, materials, methods, and environments in the production process, so as to realize the full-factor traceability of the product production process.
In terms of domestic and foreign market sales, the company’s current sales accounted for 3:7. But after the COVID-19 outbreak, the company`s sales adjusted to 5:5, according to its actual situation. The domestic market share reduces the impact of turbulence in foreign markets on the company’s economic benefits.
PTC ASIA Team: In addition to your own business, how do you think the brand or company culture affects your company?
(1) Brand image can save marketing costs. Products or services with brand equity can not only attract new customers, but also retain old customers. Branded products and services can save a lot of marketing costs.
(2) Brand image can increase the added value of a product or service. The brand can meet the psychological needs of customers and the needs of self-realization. Huishan brand products and services have high added value, which can be sold at a premium and obtain higher profits for the enterprise.
(3) Brand image can enhance the competitiveness of enterprises. Brands can make customers have a good impression and rich associations with the company, thereby helping to enhance the company's image; it can set up barriers to competition, which can give the company time to respond to the threats of competitors, thereby enhancing the competitiveness of the company.
PTC ASIA Team: What was your impression of PTC ASIA? Do you have any wishes and blessings for the coming 30 years of PTC ASIA this year?
Mr. Ye: I would like to wish to PTC ASIA 30th anniversary carry forward the past, continue to innovate, set sail, lead the enterprise, and create brilliant future!