The global auto industry is undergoing a revolution, significantly driven by the rapid advancement of Chinese automakers. These companies dominate electric motor production and excel in integrating high-efficiency systems and digital features into vehicles. Chinese EVs, like Tesla, focus on innovative digital components, including autonomous driving, virtual reality, and multiple high-resolution dashboard screens. The term “digital bling” captures this trend.
Chinese automakers are ahead in the EV supply chain, emphasizing software and new features over hardware. For example, JiYue offers a saloon controlled by voice commands and touch screens, while Nio provides augmented reality glasses and advanced autonomous driving systems. Electronics and digital technology now constitute over 40% of a vehicle’s cost, projected to reach 45% by 2030.
Xiaomi’s entry into the EV market, with its SU7 model, showcases rapid innovation, competing with Tesla’s Model 3 by offering advanced autonomy and a lower price. Xiaomi’s success stems from fast-follower techniques and leveraging China’s dynamic supply chain. Tesla’s “gigacasting” process for manufacturing is also being adopted and innovated by Chinese companies like Nio and XPeng.
Chinese EV makers benefit from strategic partnerships with Western firms and government policies that foster technological development. These collaborations enhance local market understanding and technological advancements, positioning China as a leader in the global EV market. Source: itif.org
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The winds of technological change are blowing stronger than ever in the world of supply chain transformation. It’s becoming increasingly clear that purpose-built intelligent applications are shaping the future of supply chain technology, particularly in the area of supply chain data management.
Over the past three years, purpose-built intelligent applications have gathered numerous insights, serving as the glue that addresses specific issues by integrating disparate systems like ERP, EAM, and P2P. Crucially, by eliminating the necessity for impeccably organized MRO data, intelligent “systems of routine” facilitate optimization and foster collaboration among internal teams and external suppliers.
This trend of data integration repeats a bit of a significant phase in the ERP industry during the late 1990s. At that time, well-funded “middleware” companies such as Active Software, BEA Systems, and WebLogic drove the eBusiness movement, revolutionizing enterprise application and service-oriented architecture (SOA) by acting as central brokers, combining data from various applications and data types into a unified system.
In the modern supply chain landscape, new software engines powered by GenAI, deep learning, and natural language processing (NLP) have the capacity to handle significantly larger datasets compared to earlier machine learning iterations. These advanced applications can analyze complex variables, including MRO inventory and spending data, far quicker. They can help build data connections between different ERP software platforms, enabling efficient management of day-to-day operations and procurement needs.
By removing the prerequisite of “clean” data, these intelligent “systems of routine” empower enterprise manufacturers to use their existing MRO data, accelerating value creation. Consequently, this will help drive the generation of demand signals and enhances optimization across supplier networks.
How can Purpose-Built Technology Benefit Supply Chain Sustainability Data Management?
The expectation for companies to embrace sustainability has evolved from a mere preference to a societal imperative. This paradigm shift necessitates businesses to realign their operations accordingly, with particular emphasis on supply chain management.
Navigating this transition poses several challenges for organizations, including the integration of diverse data sources and the complexity of multi-tiered supply networks. Maintaining data accuracy, integrity, and accessibility further compounds these challenges.
While businesses often turn to their existing technological infrastructure to address these issues, they soon realize its limitations in managing the intricacies of sustainability data effectively.
Purpose-built technology solutions offer a tailored approach to address these challenges, facilitating improved processes, security, and efficiency. These solutions enable businesses to:
Utilize versatile data collection methods adaptable to different technological capabilities and input preferences of suppliers.
Implement consistent and recurring data collection processes to minimize information gaps and reinforce procedural standards.
Provide user-friendly interfaces for external stakeholders, simplifying the adoption process and enhancing collaboration.
Automate calculations and unit conversions to ensure accuracy and streamline reporting procedures.
Enhance assurance facilitation and auditing efficiency by improving data consistency and collaboration.
Offer comprehensive data visualization and reporting functionalities to identify trends and opportunities across the supply chain.
Resilience and Agility
Purpose-built solutions serve as a vital tool that enrich and standardize procurement and operations data across systems.
Ensuring that all parties are working from the same trusted and consistent data source eliminates the need for costly traditional data cleansing.
This is critical because the more business is automated, the more we rely on the data that drives it all. Mistakes may arise in MRO inventory if data is incomplete or if your team enters MRO material information under different names.
If you’re a manufacturer with indirect and MRO inventory, you know how bad or incomplete MRO data can lead to inventory discrepancies that result in material overages or critical shortages.
The way to get around that is in purpose-built intelligent AI applications.
Companies need to adapt quickly with greater visibility and traceability to manage risk.
The future of the supply chain lies in technological advancement. It’s time for your organization to enhance your existing technology stack with purpose-built intelligent solutions to drive better outcomes in your supply chain operations.
For more information, please contact:
Karlheinz ZUERL – CEO of GTEC (German Technology & Engineering Cooperation)
The United Nations recently hosted an event commemorating the second International Day of Zero Waste, shining a spotlight on a project launched in Türkiye aimed at lessening waste accumulation.
March 30 was designated as the International Day of Zero Waste by a resolution of the United Nations General Assembly in 2022.
This occasion presents an excellent opportunity to address a sector often overlooked in its connection to nature and biodiversity, emphasizing the crucial necessity for effective business initiatives and detailing practical approaches for businesses to succeed in this effort.
Turkish First Lady Emine Erdoğan urged concrete actions toward sustainability during the event.
In a video message sent to the event in New York, she highlighted the alarming reality of daily plastic waste equivalent to the load of 2,000 garbage trucks being dumped into oceans, rivers, and lakes.
She questioned the morality behind humanity’s creation of plastic islands, akin to continents, floating in the ocean, and pondered whether progress should not contribute to a more civilized and humane world.
Drawing from the harsh lessons of climate change and environmental pollution, she stressed the imperative to combat these challenges and take tangible steps toward sustainability in the context of the responsibility to future generations.
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The Zero Waste movement, originating in the 1980s, has gained significant momentum in the building sector, driven by stricter regulations on carbon emission. Zero Waste is transforming the way we approach waste management with an increasing number of companies embracing environmentally conscious practices and the growing preference of tenants for living and working in buildings with green features.
In a bid to create a circular economy, where over 90% of post-consumer items avoid landfills, the focus is on recycling, reusing, composting, and converting organic material into renewable energy. The real estate industry is taking note, with construction and demolition waste accounting for 25-45% of U.S. landfill waste.
The Center for Zero Waste Design (CFZW) has played an important role, providing a comprehensive 150+ page report on waste management strategies. As waste practices evolve globally, Zero Waste finds more traction in Europe and Scandinavia. Cities like San Francisco and Washington, D.C. are setting ambitious waste diversion targets, signaling a policy shift towards mandatory compliance.
In the quest for sustainability, Zero Waste is set to captivate building owners and office tenants. Technology is aiding progress tracking, and with ongoing advances, we can expect innovative tools to for a transformative journey towards a greener, more sustainable future.
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A recent study for the European Union reveals China’s remarkable lead in research on clean-energy technologies, surpassing the EU and reshaping the dynamics of innovation.
In 2021, China led in peer-reviewed publications covering areas like solar and wind power, lithium batteries, heat pumps, and carbon-capture technology, marking a reversal from 2010 when the EU led in most of these sectors.
The study highlights China’s growing role as a global leader in science and innovation, posing both challenges and opportunities for the EU’s green-tech ambitions. Despite the EU’s efforts to reduce dependencies, the study suggests that gaps in research and innovation could impact the region’s ability to diversify its sources.
Interestingly, the EU is set to unveil new rules aimed at scrutinizing and potentially blocking foreign investments in sensitive industries. The study underscores the EU’s significant import reliance on China, reaching 22% in 2022, with implications for trade diversification. Chinese inputs are particularly integral to EU industries such as basic metals, chemicals, electronics, and electrical equipment.
However, the report also highlights reciprocal trade dependencies, as China’s electronics sector relies on almost 5% of its total output value from EU inputs, similar to the EU’s reliance on Chinese inputs in its overall industrial sector.
Will these measures reshape the landscape of global collaboration in the clean-energy sector?
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When it comes to international trade and sourcing products from China, making sure they comply with the agreed-upon specifications and quality standards is really important. One key part of checking quality is doing a Pre-shipment Inspection (PSI), standing out as the final check for buyers. This guide explains why PSI matters and offers clear steps for a successful inspection, ensuring a smooth sourcing process.
All inspections are essential in the quality control process, but the Pre-shipment Inspection, commonly referred to as the “PSI,” holds a unique position. By thoroughly examining goods before they leave the manufacturer’s facility, PSI helps reduce the risk of receiving defective or non-compliant products.
The objective of the PSI is to validate that the goods you have ordered have been manufactured in strict accordance with the specifications you provided to the factory.
What sets the PSI apart is its timing – it occurs when the product is fully completed and packed. In essence, what you see during the PSI is precisely what you receive; there is no room for last-minute changes by the factory.
This inspection serves as the buyer’s last line of defense, ensuring that any quality issues are identified before the goods are shipped. Discovering such issues post-PSI can result in major complications for all parties involved.
The Quality Assurance process follows the principle that “prevention is better than cure.” Success is best achieved through collaborative efforts between buyers and sellers. Factories have a vested interest in ensuring a flawless PSI because it guarantees client satisfaction, on-time shipment, and eliminates additional costs related to reworking products. Ideally, all shipments should pass the PSI, indicating that the quality control process has been diligently managed from start to finish.
How to Perform a PSI
Executing a PSI effectively involves careful planning and coordination. Here’s a step-by-step guide to follow the PSI process:
1. Review Specifications:
Confirm product specifications at the time of order placement.
Develop a Product Specification Sheet (PSS) and Inspection Specification Sheet (ISS) based on your needs and product requirements.
Ensure the factory acknowledges and understands these specifications by obtaining their signatures.
2. Scheduling:
Coordinate with the factory to determine a suitable inspection date.
Align inspection dates with the shipping schedule and your QC department’s convenience.
Confirm the inspection date with the factory and notify your QC department accordingly.
3. Documents and Tools:
Equip the QC inspector with necessary tools and documents, including:
Product Specification Sheet
Inspection Specification Sheet
QC Inspection Checklist
Drawings
Purchase Order (PO) sent to the factory
Packing labels
Carton labels
Any other relevant documents or tools required for inspection.
4. On-site Factory Inspection:
The QC inspector conducts a comprehensive on-site inspection following the ISS requirements, including:
Using the QC Inspection Checklist as a step-by-step guide.
Ensuring random sampling for quality verification.
Recording all on-site data in a report form.
Capturing clear product photos, including the details.
Maintaining open communication with the sourcing team.
If necessary, select production samples randomly for quality verification and certification.
5. Inspection Results:
Complete the PSI report and send it to the buyer before packing and transportation.
Include dimension sheets, photos, material certificates, factory QC pass certificates, and any other necessary documents to provide a comprehensive report, as required by the PO or the buyer.
In many cases, factories in China offer self-inspection services. However, it’s crucial to work with factories that have a well-established quality assurance system in place. Even if you have a longstanding relationship with a factory, conducting a thorough third-party PSI remains essential to ensure that your goods conform to your specifications and expectations.
Mastering the Pre-shipment Inspection is a critical skill for successful China sourcing. By following the steps detailed above and maintaining a proactive approach to quality control, you can protect your business from potential quality problems and shipping delays.
This article is inspired by the expertise of Iris Zhou, a highly accomplished professional with a Master’s degree in Logistics Engineering from Beijing Jiaotong University.
For more information, please contact:
Karlheinz ZUERL – CEO of GTEC(German Technology & Engineering Cooperation)
“The most important investment you can make is in yourself. Very few people get anything like their potential horsepower translated into the actual horsepower of their output in life. Potential exceeds realization for many people … The best asset is your own self. You can become to an enormous degree the person you want to be.”— Warren Buffett
An easy way to understand this is by looking at your to-do list. If you are seeing some items from previous weeks, congrats! You are a procrastinator…
If you are delaying important but cumbersome tasks and focusing on more enjoyable easier tasks, let’s put it like this, you are not lazy but only restricting your potential!
The thing is, labeling yourself as a procrastinator is mentally tiring. Once you accept, it goes all the way to your daily tasks. Everything starts to look like a chore.
Although I have never called myself a procrastinator, I tend to push the limits of deadlines for almost every task by doing almost nothing tangible initially.
So, I have some advice!
Mentally prepare yourself for your tasks! Coming up with a conceptual framework is half of the job at hand, whatever it is.
If you have five minutes to cut down a tree, use your first three minutes to sharpen your axe!
I came across a word of wisdom from an ancient Jewish King, Solomon. He stated: “If the ax is dull and its edge unsharpened, more strength is needed…” (Ecclesiastes 10:10a)
It’s the famous quote from Abraham Lincoln, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”
So, if you are going through a period of exhaustion:
Layoffs
Work Stress
Parenting
Relational Issues
Toxic People
All of the Above
Realize that you need to take time to regain strength and energy by renewing yourself physically, emotionally, mentally and spiritually. It’s important. Not just for yourself, but for everyone who depends on you to be at your best.
How to get back to making an impact?
Here are five tips:
1. Set Expectations Early On
2. Set Priorities and Stick To Them
3. Be Proactive
4. Don’t bite off more than you can chew
5. Build your toolbox
If you are a private person want to know more, visit our website https://gtec.asia/profit-growth-academy/partnership-program/ and ask for “MENTORING”
or if you are a company and need support by our experts in industry, please visit our website https://gtec.asia/experts-in-industry/
Experts in the Automotive Industry Asia
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“After years of ‘Made in China,’ supply chains consider alternatives”
Let’s take a closer look at factors to consider when evaluating the possibility of shifting your supply chain away from China:
When to consider moving your supply chain
Tariffs and Cost-Efficiency: Evaluate whether tariffs are currently impacting or are expected to affect your product significantly. Additionally, if other countries offer lower labor costs and evidence suggests that the product can be produced at an equivalent quality level for less, it’s worth considering a move.
Shorter, Competitive Supply Chains: If shorter, more competitive supply chains, like those in the USA or Mexico, this can be a strong motivation to relocate your supply chain.
When not to move your supply chain
Your product relies on a complex, highly specialized supply chain.
Moving your supply chain would be a lengthy, capital-intensive endeavor without guaranteed long-term cost benefits.
Quality standards and expectations are not met.
Overall costs increase due to lower productivity in alternative countries.
You still rely on raw materials and resources imported from China.
Tariffs could potentially affect your chosen alternative.
China remains the best sourcing choice for your products.
While the allure of China sourcing alternatives is strong, careful consideration and thorough analysis are essential before taking the leap.
I would love to know your thoughts in the comments below. 👇🤝
Experts in the Automotive Industry Asia
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In a rapidly changing global trade landscape, importers are faced with a pressing question: Should they continue to source their products from China, or is it time to explore alternatives? The uncertainty brought about by tariffs, trade wars, rising labor costs, and the persistent impact of COVID-19 has sparked this crucial debate.
Some prominent players in the industry, like Nike and Adidas, have already diversified their sourcing, venturing into countries such as Vietnam, Bangladesh, Thailand, India, and Pakistan, particularly for goods like footwear, garments, and electronics.
But are the concerns about tariffs, trade wars, labor costs, and the pandemic justified? That remains uncertain, and the answer might vary for different products.
So, what are your options? Depending on your product and industry, you could: ✅ Keep Production in China. ✅ Balance Supply Chain Management: Keeping some supply chain aspects in China outsourcing other components to optimize price, quality, and tariff. ✅ Relocate Production: Move the entire production out of China. ✅ Re-shore: Bring production back to the USA.
▶️ The next part will provide valuable insights about factors to consider when moving the supply chain from China to alternative sources.
Experts in the Automotive Industry Asia
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