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Manufacturing enterprises in Zhejiang benefit from digital transformation

January 25, 2022


Abstract : Li Tianlong, owner of a motor manufacturer in Yongjia, east China's Zhejiang Province, said digital transformation has saved his 60-employee company from bankruptcy.

A worker works at the automated production line in the digital factory of Xio Lift in Linping district, Hangzhou, east China's Zhejiang Province, Dec. 17, 2021. (Xinhua/Huang Zongzhi)

by Xinhua writers Hua Hongli, Lin Guangyao

HANGZHOU, Jan. 24 (Xinhua) -- Li Tianlong, owner of a motor manufacturer in Yongjia, east China's Zhejiang Province, said digital transformation has saved his 60-employee company from bankruptcy.

His company, Zhejiang Shuntian Transmission Technology Co., Ltd., underwent a tough period during which production efficiency was extremely low and employee performance kept slipping.

"I was then in desperate need to find a way out," said Li.

In 2021, Shuntian finally resolved to cooperate with Inclution, a digital service provider founded in Hangzhou, Zhejiang's capital.

However, very little was known about digital transformation among Li's employees at that time. He came under fire by many who strongly opposed digital transformation for fear of uncertainties.

"I just feel lucky that I have overcome many struggles to finally make my company go digital," Li said.

Thanks to the digital transformation, Shuntian saw its annual order delivery hit a record high, with its annual output up 13 percent year on year at the end of 2021.

Li said that now frontline employees only need to operate all-in-one machines, and they can work with zero contact. Beside, the sales, production, warehouse storage, and quality inspection have been coordinated to give instant feedback to staff.

"The workshop director knows the whole picture of workshop production and operation via smartphones or computers. All materials have digital codes in the warehouse, and the warehouse system can improve the inventory turnover rate and greatly reduce the hidden costs resulting from insufficient material preparation and other problems," said Li.

China is speeding up digitalization in the manufacturing sector. Outlined in the 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives through the Year 2035, China will promote the deep integration of digital technology and the real economy and empower the transformation and upgrading of traditional industries to spur economic growth.

Some enterprises, however, are still ambivalent about whether to go digital due to the lacking of funds, talents, or methods.

"Many companies still don't know how to start businesses in the new digital age," said Wang Kefei, chairman of the Inclution.

"We're working with these companies to search for areas that can be optimized, especially to tackle common problems in production, procurement, inventory, and error-prone piecework," Wang added.  ■

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Keyword: Zhejiang manufacturing sector digital transformation

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