More order, more production and more supply; less order, less production and less supply. After Baosteel's visualized supply chain management system (VSS) is adopted, the whole supply chain of automobile plant is likely to install the nerve system, to timely respond to the change of end user, thanks to which, total inventory capital occupancy rate of Nanjing Changan Ford Mazda is decreased by 37% last year on the year-on-year basis, and average inventory cycle is reduced from 60 days to 45 days.
This year, Baosteel has gradually promoted VSS system to automobile assembly plants and large appliance manufacturers in China. The implication is that Baosteel will further joint hands with our clients to create sharing management platform for both up and down stream sectors, build up digital supply chain system, develop new supply-demand mode starting from automobile terminal sales through steel supply to whole process of iron ore demand.
For a long time, automobile plant, incorporated plant and steel plant are short of real-time information sharing mechanism, and unpredictable automobile assembly always disturbs their normal production plan, causing wild fluctuation of production and logistics plan on the supply chain. Before, all units on the supply avoids shut-down risk to amplify the order quantity, leading to high cost.
In order to serve our clients more efficiently, Baosteel has actively implement customer-oriented concept, trying our best to create values. Since 2011, under the support of Baosteel automotive sheet sales department, sheet sales department and Baosteel International, Baosteel Trading Company and Baosight, etc. Have jointly set up VSS research team, and cooperated by such clients as SGM to study on such operation & management mode as optimal inventory, minimun cost and risk, etc. The team has focused on clients' requests, work on assisting client's management, dynamic information inspetion, joint replenishment policy through component management and ECR. Through 2 years' active investigation, the team has successfully set up and gradually promoted VSS system in some of the domestic automobile plant by intelligent measures and intensified information communication & interaction with automobile clients.
At present, VSS has made up 8 invention patents, and passed evaluation and safety grade certification by Shanghai Municipal Key Laboratory for Computer Software Evaluation. It is indicated by data analysis comparison before and after VSS is on-line that financial capital occupancy and inventory cycle of the whole supply chain has been substantially improved, especially material breaking alarm frequency which is influential to automobile production is reduced by 70%. Target of Low Cost, High Synergy, Quick Response for supply chain share platform has been preliminiarily fulfilled.
