Engineering Blog

Supply chain trend of manufacturing industry in 2020


2020 is an important year for China’s processing and manufacturing industry. With the “made in China 2025” and the “new normal” of China’s economy, China’s manufacturing industry will be restructured from two aspects of industrial transformation and value chain. Some reports show that the development focus of supply chain in different industries depends on the characteristics of industry transformation.

According to the data, the development trend of China’s supply chain in 2020 mainly includes: innovating retail e-commerce industry and high-tech industry, developing Internet technology and logistics express service, and promoting the development of automobile and industrial manufacturing industry.

  • 1、 The development of e-commerce leads to the distribution pattern of downstream retail market, which threatens the survival status of logistics companies:This trend reflects the fierce competition in the e-commerce and logistics market. The boundaries between different e-commerce ecosystems have become blurred. At the same time, commercial express logistics providers develop and launch differentiated products.
  • 2、 Consumer goods companies use e-commerce and m-commerce to achieve business model innovation in China:With the emergence of more and more o2o websites and the continuous improvement of supply technology, consumer goods can realize seamless online and offline experience. In addition, as businesses can obtain a large number of consumer demand information through the network, it is urgent to build a flexible supply chain relying on the analysis and sales operation ability of big data.
  • 3、 Although many mobile phone manufacturers are seeking to improve their supply chain, they are still facing bankruptcy:Mobile device market is one of the most active markets. The competitive nature of this market has shifted from product competition to product ecosystem competition. Therefore, it is far from enough to rely on improving the efficiency of supply chain and the effectiveness of distribution channels.
  • 4、 Capacity and distribution capacity of the life sciences and healthcare industries have increased:With the aggravation of China’s aging, people’s demand for life science and health care is also gradually increasing. In this field, the demand for quality control is particularly prominent. Under the premise that the control cost does not affect the quality, the universality of service becomes a new challenge.
  • 5、 The auto industry is close to the peak capacity, and the focus in the future is to achieve greater sales under the same capacity:In the next two to three years, overcapacity in the automotive industry will become more and more serious. In the face of this problem, the next stage of automobile value chain growth will focus on used car sales and after-sales market.
  • 6、 Industrial manufacturing continues to be affected by the overall decline in real estate:The growth of the real estate market continues to slow down, and the industrial sector will also experience a long downturn. Therefore, improving production efficiency through lean production and export supply chain will become the focus of supply chain in this field.
  • 7、 Traditional manufacturing activities will be merged, relocated overseas or converted to automated operations:China’s labor costs are rising, and China’s traditional labor-intensive industries have gradually lost their original attraction. Most labor-intensive manufacturers move their factories to new low-cost regions such as Southeast Asia and Africa.

The Internet is leading a new revolution, which is a life and death challenge for Chinese enterprises. Therefore, Chinese enterprises must change their traditional manufacturing methods, improve production efficiency and quality, and establish professional and efficient intelligent chemical plants.

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