Alibaba Group Holding Limited revealed the launch of Xunxi Digital Factory – a new digital manufacturing facility that offers a digitised end-to-end manufacturing supply chain.
Based in Hangzhou, the factory is powered by Alibaba’s cloud computing infrastructure and IoT system that assists in a fully-customised, demand-driven production.
The introduction is a step in the implementation of Alibaba’s ‘Five New’ strategy first introduced in 2016 by Jack Ma that includes New Retail, New Manufacturing, New Finance, New Technology and New Energy.
“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. This allows traditional manufacturers to improve profitability and reduce inventory levels while still being able to meet these personalisation needs,” said Alain Wu, CEO of Xunxi Digital Technology Company, Alibaba Group.
The factory is powered with advanced technology like real-time resourcing, process and cost planning, automated in-house logistics and Xunxi’s manufacturing operating system, which empower the factories to produce small-batch orders at reasonable costs and with shorter delivery times, consequently increasing manufacturing efficiency from 25 per cent to an average of 55 per cent.
The cloud production facility helps the small- and medium-size businesses to stay competitive in the fast moving fashion market. The technology empowers them with transparency and complete connectivity allowing doing business from anywhere.
On 14 September, the World Economic Forum (WEF) designated Xunxi Digital Factory a Lighthouse as a part of its Global Lighthouse Network – a community of companies that have successfully adopted Fourth Industrial Revolution technologies at scale.