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CRRC strengthens global presence with smart supply chain

China

China

China

CRRC strengthens global presence with smart supply chain

2024-11-29 17:39 Last Updated At:23:27

China's CRRC rolling stock manufacturing company has strengthened its global presence by meeting over 80 percent of the industry's supply needs locally, powered by its robust smart supply chain and industrial clusters.

As the world's largest supplier of rail transit equipment with the most complete production lines and leading technologies, the CRRC collaborates with more than 2,000 companies on the supply chain for high-speed trains, which consist of 40,000 components in Zhuzhou, a city in south-central China's Hunan Province and the birthplace of China's electric locomotives.

At the CRRC's plant, production lines are operating at full capacity, focused on producing traction converters and network control systems for high-speed rail.

"Once we receive production demands, we plan scheduling based on the overall strategy. Now, with the supply chain collaboration platform, we share these demands with upstream suppliers, boosting supply efficiency and ensuring seamless information exchange for faster customer response," said Qiao Lin, deputy director of the Procurement Center at Zhuzhou CRRC Times Electric Company Limited.

Previously, communication with suppliers would rely on manual data collection, which was time-consuming and often inaccurate, leading to frequent production errors. Today, with a smarter, more agile supply chain, the process is much more efficient.

"With our smart supply chain, order details like specifications, quantities, and delivery dates are shared directly with suppliers in real time. They deliver materials on schedule, ensuring everything arrives before production starts. This streamlines operations and reduces overall inventory levels," said Zhang Fengfei, deputy director of the Operations Management Department at CRRC Zhuzhou Electric Company Limited.

Reducing inventory is crucial for businesses. Less storage space frees up room for new products, and production lines can use materials more efficiently. Finished products are quickly transported to the next stop -- a key advantage of industrial clusters.

Nearby, CRRC Electric also benefits from this system. The company produces customized traction motors and transformers for locomotives using a flexible production line.

Trucks are loaded and ready to roll to Zhuzhou Locomotive, their final stop before assembly.

"Any changes are updated in real time. Adjustments to the production schedule automatically trigger updates to delivery timelines, and suppliers respond accordingly. Their feedback is sent back instantly, helping our production team make decisions. This real-time coordination ensures seamless production and more accurate execution," said Qi Ran, associate director of Supply Chain at CRRC Zhuzhou Locomotive Company.

With its products reaching over six continents and more than 50 countries and regions, CRRC is bringing China's speed and expertise to the rest of the world.

CRRC strengthens global presence with smart supply chain

CRRC strengthens global presence with smart supply chain

China urges companies to make independent, interest-aligned business decisions free from external political interference, said Chinese Foreign Ministry spokeswoman Mao Ning at a regular press conference in Beijing on Friday.

Mao's comments came in response to a BBC report on Thursday in which Tadashi Yanai, CEO of Fast Retailing - the parent company of the global clothing brand Uniqlo - stated that the company does not source cotton from China's Xinjiang region.

"Cotton from the Xinjiang region is among the best in the world. We hope relevant company will overcome political pressure and malign disruption, and independently make business decisions that serve its own interests," Mao said. 

Speaking to the BBC in Tokyo, Yanai explained the company's focus on greater transparency regarding the sourcing and manufacturing of its materials, stating that Uniqlo does not use Xinjiang cotton.

However, in a recent interview with Nikkei Asia, Yanai reiterated that production in China remains crucial for the company.

Figures show that as of Oct 31, Uniqlo has 927 stores on the Chinese mainland, more than a third of its total of over 2,500 stores worldwide. Among these, nearly 20 new stores opened in September and October this year - including its first store in Sanya, a tourist city in China's southernmost island province of Hainan.

In the 2024 fiscal year, Uniqlo's sales revenue in Greater China reached a whopping 677 billion yen (about 4.38 billion U.S. dollars), up 9.2 percent year on year, according to Fast Retailing, Uniqlo's parent company.

China urges firms to eliminate political pressure, make independent decisions: spokeswoman

China urges firms to eliminate political pressure, make independent decisions: spokeswoman

China urges firms to eliminate political pressure, make independent decisions: spokeswoman

China urges firms to eliminate political pressure, make independent decisions: spokeswoman

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