Alibaba Group Holding Ltd (NYSE:BABA) Powers SMEs With Cloud Computing Infrastructure And IoT For Demand Driven Production

Alibaba Group Holding Ltd (NYSE:BABA) introduced an end to end production supply chain for SMEs. With the new tool, SMEs can choose a demand-driven and customized production.

Alibaba establishes Xunxi Digital Factory

The small businesses and producers can benefit from the digitalized manufacturing market, which is valued at more than $4 trillion, in China. They can respond faster to the changing requirements of customers. All of this is possible through establishing Xunxi Digital Factory by Alibaba.

Data plays an important role in new manufacturing

CEO of Xunxi, Alain Wu, said Data plays an important role in the new production techniques. Harnessing vital data insights helps the companies to know about new and emerging opportunities. It is highly useful when it comes to personalized preferences compared to mass-produced goods. The traditional manufacturers can use technology and data-driven intelligence and adopt a more agile manufacturing model to satisfy the real demand.

The new IoT and cloud infrastructure plays a vital role in maintaining optimum inventory levels and maximizing profits for SMEs while satisfying consumers’ personalized needs.

A new milestone

Jack Ma, the founder of Alibaba, introduced five new strategies: New Manufacturing, New Retail, New Energy, New Technology, and New Finance. Alibaba achieved another important milestone by introducing an innovative manufacturing method.

Increases manufacturing efficiency

Xunxi identified apparel as the starting point, where higher inventory levels and lengthy manufacturing have become problematic for large and small players. The company utilized innovative technologies like real-time sourcing, cost planning, process, Xunxi manufacturing OS, and automated in-house logistics to manufacturing small batch orders in shorter periods economically. It helped to increase production efficiency to 55% from 25%.

The manufacturers can gain insights into consumers’ preferences using the sales forecast models of Xunxi together with AI-supported integrated PDP (product design platform). It improves information flow and lowers costs associated with R&D. Therefore; businesses can benefit from rapidly evolving opportunities to introduce products to satisfy the personalized needs of consumers.

Alibaba gained an unparalleled advantage in China in the apparel segment by collecting the personalized preferences of consumers. Previously, the company suffered a loss of 30% because of excess inventory. With the advent of made in cloud manufacturing, SMEs can accrue rich dividends in the rapidly moving fashion sector.

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