Alibaba Unveils New Manufacturing Digital Factory
September 16 2020 - 1:46AM
Business Wire
Cloud intelligence-powered manufacturing levels
playing field for SMEs, enabling access to small-batch
customization and agility in production
Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988,
“Alibaba” or “Alibaba Group”) today revealed its New Manufacturing
model for the first time with the unveiling of Xunxi Digital
Factory (“Xunxi”).
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Alibaba revealed its New Manufacturing
model for the first time with the unveiling of Xunxi Digital
Factory. (Photo: Business Wire)
Powered by Alibaba’s cloud computing infrastructure and IoT, the
Hangzhou-based factory offers SMEs a digitalized end-to-end
manufacturing supply chain that allows for fully-customized,
demand-driven production. This gives smaller businesses and
manufacturers in particular the ability to benefit from the
digitalization of China’s over RMB30 trillion (over USD4 trillion)
manufacturing market1 through being able to respond better and
quicker to customers’ changing needs.
“Data is the core of New Manufacturing and harnessing data
insights is key to capturing new opportunities in the shift in
consumer preference for personalized rather than mass-produced
goods. New Manufacturing transforms traditional manufacturers with
data-driven intelligence and technology to move towards a more
agile model of production based on real-time demand,” said Alain
Wu, CEO of Xunxi Digital Technology Company, Alibaba Group. “This
allows traditional manufacturers to improve profitability and
reduce inventory levels while still being able to meet these
personalization needs.”
The introduction of New Manufacturing is another milestone in
the implementation of Alibaba’s “Five New” strategy which was first
introduced by founder Jack Ma in 2016, and comprises New Retail,
New Manufacturing, New Finance, New Technology and New Energy.
At an early stage, apparel was identified as the starting point
for Xunxi – a sector in which the lengthy production cycles and
high inventory levels have long been a problem for small and large
players alike. Powered by new technologies such as real-time
resourcing, process and cost planning, automated in-house logistics
and Xunxi’s manufacturing operating system, the factory is able to
produce small-batch orders at reasonable costs and with shorter
delivery times, consequently increasing manufacturing efficiency
from 25% to an average of 55%.
Xunxi’s trend and sales forecast model alongside its own
artificial intelligence-aided integrated product design platform
gives manufacturers insights into consumer preferences. This
enhanced information flow can reduce research and development costs
and enable businesses to capture the fast-evolving opportunities
for consumer personalization.
Apparel has consistently been one of the biggest categories on
Alibaba’s retail marketplaces in China, which has given the company
an unparalleled advantage in gathering customer insights. In the
past, excess inventory has led to a 30% loss in revenue across the
industry. The Xunxi pilot demonstrates Alibaba’s commitment to make
it easy to do business anywhere. Leveraging this ‘made-in-cloud’
production, small and medium sized businesses can stay competitive
in the fast-moving fashion market.
Since its inception, the factory has collaborated with Taobao
and Tmall merchants, livestreaming broadcasters and streetwear
designers to explore and experiment with new possibilities of
apparel manufacturing.
On September 14, the World Economic Forum (WEF) designated Xunxi
Digital Factory a Lighthouse as part of its Global Lighthouse
Network, a community of world-leading companies that have succeeded
in adopting Fourth Industrial Revolution technologies at scale. The
designation recognizes Xunxi’s achievements in combining powerful
digital technologies with consumer insight and bringing a fully
digitalized New Manufacturing model to life.
The Xunxi showcase comes at a time when the COVID-19 pandemic is
catalyzing an acceleration in the digital transformation of
different industries. In the future, Xunxi Digital Factory will
help apparel customers reduce inventory levels even further, while
continuing to increase efficiency as well as the level of
customization. As the initiative progresses, the technology will be
replicated into other sectors in addition to the current focus of
fashion and apparel. Wu added, “We look forward to learning from
and partnering with industry peers to build the ecosystem of New
Manufacturing together.”
About Alibaba Group
Alibaba Group’s mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba, and that it will be a good company that lasts at least
102 years.
1 Source:
https://www.statista.com/chart/20858/top-10-countries-by-share-of-global-manufacturing-output/
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200915006386/en/
Jay Zhou Alibaba Group +86 186 0104 8875
fancai.zfc@alibaba-inc.com
Claire Zhao Alibaba Group +852 9727 8923
yanan.z@alibaba-inc.com
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