【Multinational Enterprises in China】
Editor's note:
Walk into multinational companies in China, and listen to the CEOs of foreign companies talk about "Chinese-style modernization opportunities" and explain "the way of economic globalization".
Chinanews.com, February 5th: Yin Zheng, Executive Vice President of Schneider Electric: Continue to strengthen the localized supply chain in China
China-Singapore Finance and Economics reporter Wu Tao
The successful creation of a localized supply chain is the "magic weapon" for many multinational companies to be rooted in the Chinese market. How do they do it, how do they manage the upstream and downstream industrial chains and help them carry out digital transformation?
Recently, Yin Zheng, executive vice president of Schneider Electric and president of China and East Asia, said in an interview with Zhongxin Finance that the local procurement rate of Schneider Electric’s supply chain in China has reached more than 90%. In the future, Schneider Electric will continue to play a localized supply chain We will better respond to the needs of the Chinese market and provide more green and innovative products and digital solutions that meet the pain points of users.
Focus on building a localized supply chain in China
Yin Zheng said that supply chain localization is an important part of Schneider Electric's multi-localization strategy. It has four main characteristics: short chain, symbiosis, digitalization, and green.
Taking the short chain as an example, it refers to the localization of production and manufacturing, the localization of the upstream supply chain, and the autonomy of management decision-making.
Yin Zheng said that Schneider Electric has nearly 30 factories and logistics centers in China. Most of its products are produced locally. The supply chain is short and the response speed is fast. Moreover, the supply chain in China has sufficient autonomy and can quickly adjust according to market demand. , Agile response.
According to reports, today, the localized supply chain has become an important driving force for Schneider Electric's vigorous development in China.
Schneider Electric already has 18 smart factories and smart logistics centers in China, 17 "zero-carbon factories", 15 "green factories", 12 carbon-neutral factories, and more than 1,600 local suppliers. The local procurement rate has reached over 90%.
Yin Zheng said that in the future, Schneider Electric will continue to take advantage of the localized supply chain and use the "China Center" to promote close cooperation and mutual support between the supply chain, R&D, sales and partners, and continuously optimize the agile integration of R&D, production and sales. mechanism, better respond to the needs of the Chinese market, and provide more green and innovative products and digital solutions that meet the pain points of users.
China's industrial "double transformation" contains huge market potential
In addition to the construction of a localized supply chain, Yin Zheng said, "China insists on expanding opening up, the market is rapidly upgrading, the business environment is continuously optimized, and innovative supporting measures are becoming more and more complete. These have provided Schneider Electric with a broad development platform."
"China's industry is moving towards the 'dual transformation' of digitalization and low-carbonization, which is highly compatible with Schneider Electric's advantages in technical expertise and industry experience. The Chinese economy is bursting with new growth vitality and contains huge market potential." Yin Zheng said.
Yin Zheng believes that through digital solutions, carbon reduction actions can help companies optimize processes and improve efficiency at all stages of the life cycle, and achieve synergy with upstream and downstream, thereby improving the overall efficiency of the industrial chain and bringing economic benefits.
"At the same time, through leading consulting and guidance, enterprises can 'medicine first, then medicine', find the most suitable dual transformation solution for their own characteristics, conduct small-scale pilots first, and gradually drive the overall transformation." Yin Zheng said.
Many enterprises pay attention to the balance between sustainability and efficiency in the process of transformation. Yin Zheng responded that the practice of sustainability must have economic returns, otherwise enterprises have no motivation to persevere, and the current level of technological development can already promote The simultaneous development of economic benefits and sustainable development, especially leading technologies such as digitalization, can help companies achieve a win-win situation of carbon reduction goals and efficiency improvements.
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