Interview with Yang Yuanqing: In the post-epidemic era, Chinese companies should strengthen supply chain risk management
Yang Yuanqing.”The new crown epidemic will have a very important impact on the geopolitics of the post-epidemic era and the development of the global economy, but it is too pessimistic to assert that” the occurrence of an epidemic will end “and” global industrial chains, supply chains will intensify de-Chinaization “.”On April 22, Yang Yuanqing, chairman and CEO of Lenovo Group, said in an exclusive written interview with Sauna and Yewang that facts have proved that China ‘s response to emergencies is far more efficient than other emerging economies, and the epidemic highlights China.Manufacturing is an important level in the global supply chain.As the Lenovo Wuhan Industrial Base reached full production resumption in early April, all of Lenovo’s manufacturing bases in China have been “revived”.Yang Yuanqing pointed out that although the epidemic will not reverse economic growth, it is likely to promote the global industrial chain and the further reorganization of the supply chain structure, which will also bring new possibilities and challenges to Chinese companies.Chinese companies appropriately increase the flexibility and sufficiency of their supply chains, diversify risks, and enhance the “immunity” of Chinese manufacturing.The efficiency of Made-in-China in responding to emergencies far exceeds that of other emerging economies: What impact has the epidemic had on Made-in-China?Now look back at how the manufacturing industry’s anti-epidemic performance is?Yang Yuanqing: This sudden outbreak brought a certain impact on the Chinese manufacturing industry in the early stage of the anti-epidemic, but at the same time it also showed the important substitution of “Made in China” in the global supply chain, showing that “Made in China” has a strongThe competitiveness and anti-risk ability of China demonstrate the development potential of China’s smart manufacturing and industrial upgrading.In the early stage of the outbreak, in order to prevent and control the spread of the outbreak, it caused delays in the resumption of work of Chinese manufacturing enterprises, stagnation of production capacity, and difficulty in recruiting workers, etc., which interrupted the normal operation of the global supply chain.However, Chinese manufacturing enterprises have actively taken measures, and under the guidance of the government, they have done a good job in preventing epidemic diseases. At the same time, they have actively resumed production and resumed production. They quickly overcome the impact of the epidemic on production, quickly resumed production, ensured the timely delivery of overseas orders, and stabilized the global supply chain.In just two months, China’s epidemic situation has been basically brought under control. As enterprises resume production, production capacity is rapidly increasing.Made in China’s response to emergencies is far more efficient than other emerging economies.Yang Yuanqing.Sauna Night Net: There are still some shortcomings in China’s manufacturing industry?Can you see new transformation possibilities under the epidemic?Yang Yuanqing: As a “world factory”, China has the world’s largest manufacturing system with the most complete chains and supporting facilities. It has higher quality labor, a complete industrial layout, convenient infrastructure, and regional advantages of the industry.Over the past 40 years of reform and opening up, China’s manufacturing industry has fully integrated the global value chain, with important branches overlapping in the international division of labor.The output of smartphones and laptops produced in China alone accounts for over 80% of the global market.But in the past, “Made in China” had long relied on the cost advantages of demographic dividends, resource dividends and other factors, mainly based on OEM processing and manufacturing, with insufficient independent innovation capabilities in manufacturing, and shortcomings in core technologies.In the process of fighting the epidemic, whether it is smart medical care, smart education, smart office or smart manufacturing, smart technology has burst out amazing energy.Therefore, accelerating the advancement of China’s manufacturing automation, intelligent transformation, and accelerating the development of the industrial Internet can even effectively respond to various risks, and can help China’s manufacturing industry to improve quality and efficiency, reduce costs, innovate business models, and promote industrial upgrading and transformation.To the middle and high end of the global value chain.The crisis has nurtured potential, and China’s manufacturing industry has properly exercised its internal strength, and actively promoted the transformation and upgrade to intelligent manufacturing.Only in this way can the “immunity” of China’s economy be strengthened, and the great powers of the “world’s factory” be shouldered to inject new momentum into the expected development.Will the epidemic cause a low tide of reconstruction?What do you think of the recent “decoupling” sounds?杨元庆:新冠疫情对后疫情时代的地缘政治、全球经济发展都会产生非常重要的影响,但断言“疫情之后全球化会走向终结”“全球产业链、供应链会加剧‘去中国化’”等观点Too pessimistic.I think that the epidemic will not end the gradual progress, but it will make people re-examine the supervision, industry chain and its governance framework, and make continuous corrections between cooperation and opening up, looking for new opportunities and new growth points.Over the past few decades, the global market has gradually formed a global industrial chain and supply chain centered on Chinese manufacturing.During the epidemic, the global supply chain was indeed hit.However, China’s management capabilities in epidemic prevention and control and resumption of production have further proved the embodiment and irreplaceability of Chinese manufacturing.At present, Made in China has entered a transitional upgrade and entered a new stage of intelligent manufacturing that is expected to develop.Although the epidemic will not reverse economic growth, it is likely that the global industrial chain and supply chain structure will be further reorganized, which will also bring new opportunities and challenges to Chinese companies.Sauna Nightnet: Facing the reorganization of the global industrial chain and the corresponding opportunities and challenges, Chinese companies should make some preparations for thinking and actions?Yang Yuanqing: First of all, we must correctly recognize that in the past few decades, the global supply chain and value chain have been shifting, and some shifts are in line with our own development needs, making us hope to achieve from a manufacturing power to a “manufacturing power.”Change.The “new infrastructure” is an excellent opportunity for us to upgrade China’s role in the global industrial chain and achieve sustainable growth.In fact, supply chain risk management is equally important for Chinese companies. Chinese companies should also enhance the flexibility and total amount of their supply chains, diversify risks, and enhance the “immunity” of Chinese manufacturing.Lenovo’s factory in China has been fully reworked and will take the lead in stabilizing the global supply chain Yang Yuanqing and Wuhan employees.Sauna Night Net: The epidemic is still raging around the world. How is the resumption of Lenovo’s factories at home and abroad?Yang Yuanqing: We have 33 manufacturing plants around the world.In the initial stage of the epidemic, we gradually actively promoted the resumption of domestic factories and production, and changed to our factories in Brazil, Mexico, the United States, India, Japan and other places have been operating normally.At the same time, Lenovo departments continue to communicate with global suppliers and customers in the upstream and downstream of the supply chain to formulate procurement and delivery plans to minimize the impact of the epidemic on “Made in China”.As an integrated manufacturing enterprise going out of China, Lenovo clearly sees that the global layout of supply chain system and intelligent transformation with Chinese manufacturing as the core has important value in enhancing the enterprise’s risk resistance.At present, Lenovo’s factories in China have all resumed production and 100% of production capacity has been restored, including the Wuhan manufacturing base.The Wuhan plant also takes advantage of the intelligent manufacturing benchmarking plant, using the Internet of Things and big data technology to realize employee information management, epidemic prevention management and intelligent decision-making production, while efficiently and quickly resuming production, and ensuring the health and safety of employees.”Made in China” came slowly and we freed up our hands to better cope with the impact of the epidemic in other regions.Lenovo ‘s manufacturing layout has obvious advantages. The factory ‘s global layout and its own factory are combined with the outside, which allows us to better cope with this wave of outbreaks and waves of epidemics, and better disperse and resist the insurance.Sauna Night Net: How to solve the problems of material supply and artificial residue during the resumption of work?Yang Yuanqing: In the face of the epidemic, we made an early judgment and started to stock up on the supply of spare parts in the coming weeks before the Spring Festival.After the Spring Festival, Lenovo was one of the earliest manufacturers in China to resume production due to adequate preparation and safety measures for epidemic prevention.We have also adopted a “shared employee” approach to provide short-term work opportunities for employees of out-of-business SMEs that have been hit by the epidemic, achieve a win-win situation, and solve the problem of shortage of workers in the early stage of resumption of production.In February, all factories in Lenovo nationwide except Wuhan completed full production and resumption of production, and the Wuhan plant also achieved full resumption of production in the middle and late March.As a leading enterprise in the industry, Lenovo took the lead in realizing the resumption of production and production, driving component suppliers in the upstream and downstream of the industrial chain to resume operation, thereby stimulating partners in the entire value chain to work together to defend part of China’s “world factory” and stabilize global supply.chain.Sauna, Ye Wang promises editor Xu Chao proofreading He Yan