In-depth | Where to find a good way to solve the dilemma of the global supply chain?

(The 4th CIIE) Depth | Where to find a good way to solve the dilemma of the global supply chain?

　　China news agency, Shanghai, November 9 -

　　China News Agency reporter Li Jiajia

　　The new crown epidemic, extreme weather, poor logistics... How to solve the current dilemma of the global supply chain and increase localized production and innovative research and development in China may be a good recipe.

　　"The epidemic has a very serious impact on the supply chain of the entire world. Not only car companies, but also material transportation, raw material prices, and the resumption of production and work in various countries have been affected. The supply chain has indeed encountered a lot of pressure." At the China International Import Expo, Wei Shujie, President and CEO of Michelin China, said with emotion to the reporter.

Photo courtesy of UPS booth at the 4th CIIE

　　UPS, a global package delivery company, has also witnessed the deepening of the predicament.

"From the outbreak of the epidemic last year to the current epidemic is still severe, we see that this has a very huge and profound impact on global trade, and it is a continuous impact." said Zhang Shumin, vice president of UPS China express and air operations, air cargo capacity There has been a sharp decline, while the demand for trade and transportation is increasing, which brings great challenges and difficulties to the global supply chain. This is the situation we are currently in.

　　How to break through and break through has become a common problem that global companies urgently need to solve.

The new crown epidemic has caused the world's dependence on Chinese production to increase instead of falling, especially after 2021.

Data show that in the first three quarters of 2021, China's exports increased by 30% over the same period in 2019, while global trade increased by only 4% in the same period.

　　Wang Dan, China's chief economist at Hang Seng Bank, believes that the protection of the global supply chain not only needs to guarantee supply, but it also needs to coordinate the participation of all parties to solve long-term problems.

The main issues facing the world now are supply chains, climate change and energy, which require the participation of different countries. The holding of this CIIE also reminds everyone to sit down and come up with a solution together.

　　In Wei Shujie’s view, the localization of the supply chain and the willingness of companies to use more new technologies and green business models are constantly increasing. "For Michelin, the company will increase localized productivity to ensure the supply chain Security, while ensuring the green quality of the supply chain through digital transformation."

　　During the interview, increasing localized productivity is the most frequently heard expression by reporters from China News Agency.

　　The German TRUMPF Group, which participated in the Expo for the third time, chose to establish the TRUMPF Asia Spare Parts Center in Shanghai's Pudong New Area in March 2021.

The establishment of the center provides a good idea for further shortening the delivery time, reducing logistics costs and material cost risks.

　　Yang Gang, President of TRUMPF China, told reporters from China News Agency that if the supply chain can be regionalized, both logistics and the coordination of the entire supply chain can be greatly improved.

"TRUMPF is continuing to build the China Innovation Competence Center. It forms a "three-legged" trend with innovation centers located in Europe and the Americas. The products developed here rely more on the local supply chain and can take care of China in a targeted manner. Market demand, such as the overall solution of flexible sheet metal exhibited at the CIIE this time is developed and produced by local teams."

Heraeus online RIC optical fiber manufacturing process is used to manufacture high-speed optical fiber core materials.

Photo by Zhang Hengwei

　　In order to ensure the smooth operation of the supply chain, the German technology giant Heraeus has always firmly implemented the concept of "in China, for China". Ai Zhouping, President of Heraeus Greater China, said: "In China, For China, ultimately China. Not only must the production base be moved to China, but also the application laboratory and R&D center should be located here, so as to keep up with the development of Chinese customers. At the same time, we must also vigorously develop the local supply chain in China."

　　Nowadays, under the guidance of the “Exhibitors to Investors” of the CIIE, Heraeus has invested in new projects in Shanghai, Shenyang, Nanjing, Changshu and other places, including the construction and upgrading of production facilities, innovative research and development, etc., to help The development of related industries in China.

In addition, Heraeus Photovoltaics is building a new global headquarters in Minhang District, Shanghai.

This series of investment projects will continue to bear fruit in the next one to three years, bringing more local innovative products.

Heraeus provides a variety of key materials and solutions for upstream and downstream customers of integrated circuits, covering wafer manufacturing, packaging and testing, and terminal applications.

Photo by Zhang Hengwei

　　UPS chose to use its global smart logistics network, innovative digital solutions and the latest sustainable development achievements to help companies in the dilemma of the global supply chain solve their pain points.

For example, at this CIIE, UPS exhibited the WeChat mailing service and the diagnosis and optimization of one-to-one customized supply chain solutions, which are designed to integrate the actual situation of the company from the four aspects of network, inventory, transportation and carbon emissions. Dimension to help customers analyze and optimize the supply chain, help companies reduce inventory levels, and reasonably control costs.

　　He Jiamei, President of UPS Asia Pacific, said: "We have always attached great importance to the Chinese market. We have been cultivating in China for more than 30 years. We are committed to the Chinese market and maintain a very optimistic and optimistic attitude." (End)