Alibaba unveils new digital manufacturing factory

Bigger and better. That seems to be the Chinese motto as it continues to innovate as part of an ongoing drive to boost and expand its e-commerce platforms. At the forefront of many of these innovations is e-commerce giant Alibaba which this year unveiled a new manufacturing digital factory.The Xunxi Digital Factory aims to level the playing field for small to medium-sized enterprises (SMEs), enabling access to small-batch customisation and agility in production.Powered by Alibaba’s cloud computing infrastructure and IoT, the Hangzhou-based factory offers SMEs a digitalised end-to-end manufacturing supply chain that allows for fully customised, demand-driven production. This gives smaller businesses – and manufacturers in particular – the ability to benefit from the digitalisation of China’s over $4-trillion manufacturing market by enabling them to respond better and more speedily 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 personalised 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 personalisation needs.”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%.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 making it easy to do business anywhere, leveraging benefits so SMEs can stay competitive in the fast-moving fashion market.The Xunxi Digital Factory, powered by Alibaba’s cloud computing infrastructure and IoT, offers a digitalised end-to-end manufacturing supply chain that allows for fully customised, demand-driven production.“Alibaba’s new digital factory is changing the face of manufacturing. Photo: Alibaba