Hailutong: Digital Transformation of Supply Chain

Halutong is a large-scale company A communications digital product company integrating R&D, manufacturing and sales, with customers in more than 130 countries and regions around the world. Relying on innovative products, efficient supply chain and strong strategic execution, Hailutong creates excellent peripheral accessories products such as mobile communication and digital IT for global users, and strives to become the creator and leader of high-quality products in the communication and digital accessories industry. Hailutong's own brand strategy has laid a solid foundation for the long-term development of the company in the future. Under this strategy, the three independent brands "ARUN Hailutong", "Jinlilong" and "ABS Abish" focus on emerging and mature markets. Operates with a unique business structure in order to execute appropriate strategies quickly and efficiently in response to different market characteristics.

Focus on award-winning management practices

The very forward-looking Hailutong has carried out a comprehensive digital transformation and upgrading of the supply chain since 2013, enabling the company to reduce operating costs and increase overall benefits. In the past six years, Hailutong has gradually opened up the overall information flow within the company, and has been equipped with ERP enterprise management system, WMS warehouse management system, SCM supply chain management system, CRM customer relationship management system, and PLM product life cycle development in different links. The overall investment in the system is more than 60 million yuan, which effectively reduces the overall operating cost and improves the efficiency by more than 30%.

The successful upgrade of supply chain digitization has enabled Hailutong to standardize, integrate, and refine the processes of incoming materials, order placement, storage, and delivery; realize product quality inspection, logistics and distribution, etc. The information is transparent, and the logistics turnover rate and the utilization rate of automatic storage space are effectively improved. From the perspective of customer management, by collecting and analyzing customer orders, Hailutong improves the rationality of sales plan formulation and avoids blind production.

Dialogue with award-winning companies

CEConline: What was the opportunity that drove your company to implement the digital transformation of its supply chain? What kind of internal and external environment was the company in when the practice was launched?

Zhen Chao: Founded in 1998, Hailutong is a large-scale communication digital product company integrating R&D, manufacturing and sales. Our customers are located in more than 130 countries and regions around the world. . After years of development, it has become a company with thousands of employees and hundreds of senior talents in scientific research and development, enterprise management and so on. When the scale of the enterprise grows, the most test is your reaction speed. Scale is leading, not as effective as scale. As a large-scale enterprise, Hailutong has taken the lead in the pursuit of effective scale.

CEConline: What does this management practice have to do with your company's corporate strategy or your company's long-term future plan?

Zhen Chao: We have been investing in it since six years ago. The overall investment is relatively large, with a total of more than 60 million yuan. In the long run, the competition of enterprises in the future must be based on "three aspects", namely informatization, automation and intelligence.

CEConline: Up to now, what positive impact has this management practice brought to your company's business development, especially in terms of performance, and what achievements have you achieved?

Zhen Chao: For example, after the digitization of supply chain management and control is completed, information transparency has been achieved in the system regarding product eligibility, delivery time and distribution quantity. Assuming that Hailutong places an order to the supplier, and enters the automatic warehousing system after the delivery arrives, the quantity can neither be more nor less, so that the logistics turnover rate will be increased, and the storage space will not be occupied. From the perspective of customer management, Hailu makes plans by collecting customer sales, avoiding blindly producing products.

Review of experts

Wang Sai

Partner of Kotler Consulting China, well-known growth strategy expert

Supply chain optimization The core significance is to reduce communication costs, improve overall work efficiency, and improve the response speed to customers. For the growing private enterprises, the internal driving force of development is how to improve "management efficiency". We are delighted to see that companies like Hailutong have begun to invest heavily in enterprise management, focus on practicing internal strength, and improve the intelligence of enterprises. With the corresponding level of chemicalization, it stands on the same starting line with some advanced foreign enterprises.

Zhang Zhenghua

Founder of Best Consulting Group, China Enterprise Transformation Expert

We often say that the construction of process is to reduce the requirements for people, and the digitalization It is the real solution to the efficiency problem of business processes. As a global consumer electronics enterprise integrating production, consumption and research for nearly 20 years, Hailu's own determination has demonstrated the important strategic significance and value of digital transformation to the development of traditional enterprises.

Duan Lei

Chairman of Hanzhe Consulting Group and President of Hanzhe Investment

The core of the transformation and upgrading of traditional manufacturing lies in three aspects. The change from order-driven to direct consumption-driven, the second is the transformation from closed operation to open supply chain management, and the third is the transformation from experience management to digital and information-based management. The direction of transformation is generally correct, but it is easier said than done. The change of consciousness, team and inertia is not easy. I am delighted to see this small step taken by Hailutong. At the same time, it is also a big step for China's manufacturing industry to move towards new hope. !

Li Hui

Mercer China Partner

Strictly speaking, supply chain digitization is not a very new thing. Over the years, China has Most enterprises, especially the manufacturing industry, are providing application chain digitization, but there are still a few who have done a good job and achieved results. Of course, it is important to reduce costs through supply chain digitization. More importantly, through data accumulation, for the intelligent The era of manufacturing laid a solid foundation.

Xie Zhaohui

Founder of Zhixue Consulting and Founder of Balanced Scorecard

Chinese partner applied information system to open up end-to-end management of supply chain, Give full play to the value advantage of supply chain integration, form a high-quality and large-scale development path driven by the optimal overall efficiency of the supply chain, and provide a strong guarantee for the implementation of the differentiated competition strategy of "self-owned brands" in different regions. It has strong reference significance for the transformation of Chinese-made OEMs to OBMs.

Ye Xiaosong

India Group-Chairman of Xiamen Hill Enterprise Management Consulting Co., Ltd.

Through the investment in the construction of the information system, the company's operating costs are reduced at the same time , greatly improving the company's response speed; and through the digitization of supply chain management and control, information transparency management has been realized. It can better respond to the needs of customers externally. Internally, through information transparency, the internal management is more efficient and the cost is lower, which greatly improves the company's competitiveness in the industry. It is worth learning from the transformation and upgrading of traditional enterprises.

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