[Energy Chemicals] Use intelligent logistics with green manufacturing, saving over 20 million yuan a year

Company: Chaowei Power Supply Co., Ltd.
Industry: Energy Chemicals
Region: Zhejiang Province
Product: FineReport
Scenario: Production, Logistics, Management Cockpit, Service, Quality
Scale: Ten billion
Status: Industry leader
Year: 2019

The lack of correlation between multiple systems is the main obstacle for Chaowei Group to move from digital management to intelligent management. To overcome this obstacle, it is necessary to continuously strengthen the depth of technology application and bring the real value of data into play. As a result, Chaowei Intelligent Manufacturing Cloud Platform came into being. The three major scenarios of smart logistics, battery recycling, and quality analysis are just the epitome of the cloud platform, and the value they bring is not just cost reduction. Promoting the development of the industry's green cycle, and cultivating composite talents is a reflection of Chaowei's social value.

  • Annual cost savings of over 20 million
  • Average monthly recycling of 70 tons of used batteries
  • Optimization of production quality

1.Company Profile

Chaowei Power Supply Co., Ltd. is the parent company of Chaowei Group, the largest professional supplier of green energy solutions in Asia and the third largest in the world. Since its establishment, it has been adhering to the mission of "advocating green energy and perfecting human life" and the vision of " determined to be a great company in the global new energy industry". In the process of continuous innovation and green energy service around the fields of automotive power, new energy storage, new energy vehicles, high-end equipment, new materials, energy conservation and environmental protection, it has been awarded the National Technology Innovation Demonstration Enterprise , National Intellectual Property Demonstration Enterprise, National Enterprise Culture Demonstration Base and other honors. Currently it has 800 authorized patents, including 230 invention patents and AAA bank credit. The company ranks 162th among the top 500 Chinese companies, 67th among the top 500 Chinese manufacturing companies, and 30th among the top 500 private enterprises in China.

2. Project Background

In order to break through development bottlenecks such as land, energy, labor costs, transportation costs, and environmental pollution, the Group has adopted the "Go Out" policy. The Group has fully utilized and integrated the advantageous resources and favorable conditions inside and outside Zhejiang Province. In just ten years, it established 18 subsidiaries and realized the leap-forward development. The Group's sales revenue exceeded 10 billion in 2011, 30 billion in 2012, and 50 billion in 2015.

Although it is the largest battery industry in China, it was limited by the manufacturing environment. Chaowei's level of informatization in the manufacturing process wasn’t high enough, and the industrialization integration wasn’t deep enough. In the past two decades, Chaowei Group, like traditional manufacturing, has established various information systems in the wave of informatization, such as K3, MES, and smart office OA. It seems that a complete information system has been built, but with the development and application of big data, the problems of multiple systems have gradually been exposed. They found that these systems are not related to each other, and the data interfaces, standards, and rules are also different. These differences make each data system like an island with its own barriers. Chaowei's data quality status can be summarized as the following three aspects.

1) Lack of basic data management
The business departments in charge of the Group have not paid enough attention to basic data management, and the Group has not yet established a unified master data management platform, such as material codes, subjects, customers, and suppliers.

2) Decentralized business data management
The enterprise operation management system was not unified, the data structure was inconsistent, and financial and business data couldn’t be integrated. The application system was inadequate, the information of the group and each branch was asymmetric, and the resources couldn’t be shared, resulting in poor data timeliness and poor data quality. Therefore, the data availability and ease of use cannot meet the growing needs of decision support.

3) Unable to support data analysis and decision-making
Information acquisition was not timely or accurate, a large amount of data depended on manual statistics, and data from different sources were inconsistent. In this case, the company's data analysis ability was weak, the degree of data application was not deep, and the potential value of data was not maximized.

In response to the above dilemmas, combined with the Group's development strategy, Chaowei proposed the "Chaowei Group Intelligent Manufacturing Cloud Platform" project, and strived to apply information technology to various aspects of research and development design, production equipment, management, product circulation, marketing channels, etc., to promote productivity and product performance. By comprehensively promoting the upgrade of enterprise automation and intelligence, the transformation from “digital Chaowei” to “intelligent Chaowei” is truly realized.

3. Application Scenarios

3.1 Intelligent logistics analysis application system

Chaowei Group has many subsidiaries and many suppliers, so logistics management is a very important part of the company's management operations. Based on the company's production base and market demand, Chaowei has established a smart logistics system based on information technology and Internet of Things technology, and around logistics cost analysis models and logistics cost optimization models.

At present, the platform has realized intelligent allocation of orders. The allocation consists of two parts. The first part is to rationally allocate online orders according to the plan (the emphasis is that on the peak season some models are in short supply or the order is greater than the production capacity). After the order is allocated, it is used to push down the sales order. The second part is that the production capacity of each production company is reasonably matched with the order according to the plan, that is, the delivery plan (the emphasis is on the off-season some models are oversupplied or the production capacity is greater than the order). The delivery plan after capacity matching is used to push down the delivery notice, so that orders are allocated according to rules when there are many orders, and the capacity function of each production company is allocated according to delivery rules when there is much production capacity.

Through the intelligent logistics system, Chaowei integrated the logistics business system, unified service processes, and provided logistics information visualization services, thereby improving logistics efficiency and logistics service levels, effectively reducing the company's raw material and product inventory, and reducing logistics costs and operations cost. In 2017, the company reduced logistics costs by more than 20 million yuan.



3.2 Lead battery storage cloud platform system

Due to the peculiarity of the products in the lead-acid battery industry, there has been a long-term pollution problem due to disorderly recycling of products into illegal disposal, which makes it difficult to monitor and protect the environment. In order to solve this problem and realize the green manufacturing process, Chaowei built a waste battery recycling platform.

Based on cloud platform, the Internet of Things and other technologies, the needs of electric vehicle and car dealers are collected through mobile Internet terminal APPs, combined with the warehousing and distribution of offline cooperative agents, the full-information management of the lead-acid battery recycling process is implemented. Real-time monitoring is performed in the form of one object and one code, and a comprehensive management and control information platform for lead flow track is established. The platform establishes a lead storage battery circulation and recycling system, improves the harmless regeneration rate of lead resources, and promotes the green and sustainable development of the industrial system. It comprehensively controls lead resources in the production, consumption, and recycling and utilization fields, and achieves closed management of the entire lead industry chain. A virtuous cycle model of "production-consumption-recycle-reuse" has been formed, providing e-commerce platform transactions, data analysis, financing and other supply chain financial services and IT services to smelters, battery factories, agents, vendors, stores and other roles in the industry chain.

Now the platform has provided services to 47 agents. Since its launch three months ago, more than 200 tons of used lead-acid batteries have been recycled each month, and it has maintained rapid growth, which has greatly reduced subsequent environmental pollution and promoted the green cycle of the battery industry.






3.3 Quality analysis system

In view of the complex manufacturing process of battery products, it is very difficult to control quality issues. Chaowei establishes a quality big data analysis platform system to conduct intelligent statistics and analysis on the company's product quality problems, which is used to improve the company's product quality, process improvement, and quality improvement.

The quality analysis system provides intelligent visual dashboards such as real-time monitoring, early warning, analysis and recommendation based on production process requirements, and in turn promotes production line automation and information system upgrades. It promotes production line automation and IT information optimization based on manufacturing management needs. Through data analysis algorithms such as production monitoring early warning models and poor quality cost models, it improves the response speed of abnormal production lines, the accuracy of production input and the quality of product processes.

Through the quality analysis system, Chaowei has initially established a comprehensive analysis and improvement system for the company's product quality. Through information technology, it can comprehensively collect the company's product quality problems, analyze the raw materials that cause product quality problems, find out the reasons, and develop and improve on quality issues.



4. Project experiences

1)    To ensure the smooth implementation of the platform construction. In addition to establishing a complete implementation team internally, the company can also introduce key teams of partners through cooperation to serve the company's platform development and construction. For example, Chaowei brought in the team members of the development, testing, support, and coordination groups of Fanruan Software Co., Ltd. to ensure the steady progress of the platform construction.

2)    In the process of informatization, enterprises should not only consider what informatization can bring to enterprises, but also consider what value informatization can bring to society. Through the development, promotion, and application of information technology and platforms, Chaowei has realized the standardized recycling of used batteries, improved the level of industrial green cycle development, and brought positive value to the social environment. In addition, through the implementation of the project, it can cultivate a large number of compound talents who understand both IT technology and business. It will also provide better guidance and services for the informationization construction of the whole power battery and energy storage battery industry.
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