Current situation and problem analysis of new energy vehicles——Taking BYD warehouse management system as an example
Introduction: At present, all countries in the world are vigorously developing new energy vehicles, and new energy vehicles are also regarded as a strategic industry in our country. The development of new energy vehicles is the only way for our country to become an automobile power. my country has a good foundation for the development of new energy vehicles, and has successively introduced new energy vehicle promotion and subsidy policies. The development of new energy vehicles is advancing by leaps and bounds. Not only new energy vehicle companies such as Xiaopeng, NIO, Ideal, and BYD, but also Internet giants such as Baidu and Xiaomi have joined. Among them, BYD Auto, as a Chinese auto company, has business spanning the four major industries of automobile, rail transit, new energy and electronics.
- case background
(1) BYD's development path
In 1995, BYD was established. Compared with other companies in the industry at the same time, BYD only had a simple MRP system. In 2001, BYD began to prepare for ERP, cooperated with the world's largest ERP software company, and launched SAP-ERP in the same year. In 2002, following the trend of the times, BYD began to implement the OA system (office automation) for online office management and data sharing, mobilizing resources from various departments of the company, and greatly speeding up the work process. In 2005, BYD integrated supply chain management to realize information sharing, process refinement and transparency. In 2006, BYD deepened ERP again, the system's concurrent capability was enhanced, and its functional application was further deepened [1]. In the next few years, BYD attached great importance to the development and innovation of new products and new technologies, and successively implemented large-scale projects such as group MES (production management system), PLM (product life cycle management), supply chain, and information security[2] , In many aspects such as the production workshop execution layer, product life cycle, product demand supply layer and user information security, a high degree of interaction and synchronization between the internal resources of the enterprise and various management information systems has been realized.
(2) Technical bottlenecks and breakthroughs of BYD
With the development of the mobile Internet, BYD has launched many new technologies. The on-vehicle terminal connected to the vehicle and the server realizes the collection, processing, uploading and receiving of cloud instructions of vehicle big data through Bluetooth, network communication, cloud computing and other technologies [3]. With the development of enterprise business and the increase of business processes, storage has become the bottleneck of the ERP system, and BYD's ERP system has been unable to meet the access needs of users. In 2017, Huawei and BYD jointly used the all-flash acceleration solution to enable BYD's core business, including ERP enterprise management system, DMS distributor system, CRM customer relationship management system, EWM advanced warehouse management system, BI business decision-making system and other business systems The performance is accelerated by more than 5 times [4].
(3) The development of the same industry
FAW-Volkswagen, as a domestic automobile brand, chose EWM in 2011. ERP, DMS, CRM, MES and other systems involve a large number of product business interactions with FAW-Volkswagen's EWM. EWM brings high-precision and visualized warehouse management. Automated warehouses improve warehouse operation efficiency, reduce labor costs, and bring warehouse operations to a new level.
Tesla is an American car brand and the world's largest new energy car company. Before 2012, Tesla's core management system came from SAP like many major automakers. In 2012, Tesla's CIO led a team to independently develop an ERP system, which was launched in July of the same year. Today, Tesla's core digital management system has been completely independently developed by the company, including supply chain, product planning, inventory, sales order management, assets, finance, customer management and most other business processes.
- Main knowledge points
Business processes are the specific ways in which work, information, and knowledge are coordinated by an organization and determined by management. With the development of the Internet, BYD has continuously updated its business processes and formed work norms, enabling the company to have stronger execution and competitiveness.
The development of logistics information system can be divided into five stages: emergency service period, centralized construction period, stable service period, decision support period, and guidance innovation period. [6] BYD's logistics service is in a stable service period, and the supply chain system has been able to meet the daily business needs of the company, but further optimization is still needed. Its supply system is greatly affected by the bullwhip effect, and there is a large gap between the amount of goods received and the actual demand; the degree of standardization in the process of information data exchange is low, which may easily cause deviations in system data and lead to unknown losses.
Information system planning refers to formulating information system architecture, design, type selection and implementation strategies according to the goals of the organization's business strategy to support the achievement of the goals of the enterprise's business planning. For companies, the function of informatization is no longer just to standardize management and improve efficiency, but has increasingly become a powerful means to consolidate and improve the company's core competitiveness. Information system planning is the basis for the development of all information systems. Once the cornerstone construction is unstable or the development direction is wrong, the economic losses it will bring will be far greater than the various technical problems that arise during system development. Therefore, for BYD, after conducting a comprehensive investigation of its own company's technical needs, it will launch SAP, ERP and other management systems, and implement OA management systems, deepening ERP systems, etc. are all information aimed at enhancing the company's core competitiveness. system planning. In terms of the information system development method, BYD has formed a cooperative relationship with other organizations to jointly develop the logistics management system. Its information system development method is a cooperative development method; on the other hand, the development of ERP by the team led by Tesla's CIO is a self-development method.
- Problem analysis and answer
1. BYD's logistics information system lacks autonomy and flexibility
In the manufacturing system produced by BYD Auto, most of the parts are provided by third-party logistics companies. The supply process is as follows: (1) The parts supplier first sends the parts to the third-party logistics company; (2) The parts are scanned and stored; (3) The third-party logistics company directly sends the parts to the production line according to the production plan of BYD Auto.
After research and analysis, although BYD Auto's current logistics information system has established the overall application and integration framework within the enterprise, the business service level is low and needs further optimization and improvement [5]. At present, BYD still lacks the ability to effectively integrate various types of information in terms of logistics, and cannot use technological innovation as a springboard to guide business development, and its flexibility is still insufficient. At the same time, if you choose to cooperate with a third-party logistics company, it is not easy to grasp the actual dynamics of logistics, and your own development and decision-making will be controlled by others.
Facing this problem, on the one hand, BYD enterprises need to develop a highly independent and highly flexible exclusive logistics information management industry chain in a timely manner, and improve the logistics information management system to enhance the system's ability to analyze and integrate information. On the other hand, it is necessary to increase the intensity of independent innovation within the enterprise, improve the service level of employees, and effectively enhance the competitiveness of enterprises.
2. BYD's warehouse management system needs to be updated and improved in real time
BYD warehousing management system includes commodity inbound management, commodity in-stock management, commodity outbound management, and warehouse post management. Warehouse custodians must strictly follow the ERP system and warehouse management regulations to carry out daily operations. The business that occurs on the day must be entered into the ERP system one by one to ensure that the data in the ERP system is accurate. This traditional warehouse management method causes excessive workload for employees. There are problems such as errors in system information. BYD put into use the EWM advanced warehouse management system in 2015. The EWM system is the brain of BYD's warehouse management and manages BYD's intelligent three-dimensional warehouse. In 2018, BYD is in a period of rapid development, and the data access volume of the warehouse system has increased several times compared to before. The EWM system has reached its limit, causing a great delay in all access and query, which directly affects production. BYD is right The system is optimized.
From this problem, it can be found that BYD is relatively insensitive to the real-time update and improvement of the warehouse management system, so that the system will be updated and optimized only when the system has a direct and large impact on production and sales. Based on the lessons learned from the past, BYD should pay more attention to and optimize various core management information systems within the enterprise, and maintain a high sensitivity to relevant markets, so as to prevent problems before they happen, and try to avoid such problems encountered in the development process.
3. The cost of BYD warehouse management is too high and the function of ERP system is not perfect
After using the EWM system, BYD's warehouse management has greatly improved in all aspects, and the large increase in visits has caused a load on EWM and affected production. It was resolved when Huawei's flash memory was put into use in time. At present, under the impetus of various favorable policies in our country, the logistics industry has innovated and transformed one after another, and the logistics industry has reduced costs and increased efficiency through business technology transformation. However, usually due to the defects of the industry management system and mechanism, it is impossible to establish an efficient and high-value industrial chain model, which hinders the further development of enterprise logistics management. BYD is one of them. [7] Therefore, it is necessary to speed up the improvement of the relevant mechanisms for the development of the logistics management system to ensure the smooth implementation of logistics management cost reduction and efficiency increase. In 2019, BYD began to develop the largest intelligent logistics management system in China, hoping to realize unmanned logistics and unmanned storage.
BYD needs to upgrade the warehouse management ERP system after correctly analyzing the technological development trend of the future industrial Internet, so as to better adapt to the development needs of the enterprise [8]. The upgraded and optimized system, on the one hand, assumes the role of buffering the data generated by storing the semi-finished products produced in the workshop, and on the other hand, can sort out the products in real time according to the changes in the order order of the assembly workshop. It can effectively alleviate the problem of "low standardization in the process of information data exchange" mentioned above, make the production process more stable and accurate, reduce the unknown loss caused by data errors, and greatly reduce the production cost of enterprises.
4. Advantages and disadvantages of BYD information system cooperative development mode
The main difference between BYD and Tesla lies in the way of system development. The advantage of the BYD model is that its core management system is introduced from the outside, and its products have been tested for a long time, including the best solutions in the automotive industry. Compared with the industry, its system is very mature, reliable, and has a high fault tolerance rate. The advantage of the Tesla model is that its core management system is completely independently developed. After its independent research and development is successful, the scalability, compatibility, and adjustments that can be made according to the corporate culture and actual needs of the core management system are all important. It is unmatched by other companies, which greatly improves Tesla's corporate competitiveness.
Compared with the two, Tesla's self-developed system is bound to take many detours and face many technical problems; and BYD's introduction of existing external systems is not without disadvantages. First, the existing systems may not be perfect. It fits the needs of its own enterprise, and cannot flexibly face the problems faced by the enterprise and propose effective solutions. Secondly, the long-term appearance of products may cause problems such as rigid functions and difficult changes. In addition, the introduced system has undergone multiple version changes, and there may be redundant functions that are not conducive to operation execution.
5. The new energy automobile industry drives the development of related industries
According to the statistics of Tianyancha, there are currently more than 160,000 charging pile related companies in China. More than 80% of the related companies were established within five years ago. With the rapid growth of new energy vehicles in China, a huge gap in charging demand has been formed, and companies related to charging piles are also increasing [9]. As of February 2020, there are more than 160,000 companies related to charging piles in my country. But even so, the construction of charging piles in my country is still in short supply.
Based on this, BYD should also join the ranks of charging facilities construction. Self-built charging piles can provide special charging technical support for new energy vehicles under its own brand, and can further study how to reduce the charging time of new energy vehicles. [10] So far, BYD's private charging piles have occupied nearly 60% of China's domestic market, forming a dominant position, and it is still developing and expanding its business. This year, Tesla's new personal charging pile business "Telecall" is also expanding its market scope and competing with local Chinese companies led by BYD. Based on Tesla's mature business system and its huge market share in new energy vehicles, BYD should be more vigilant about the competition of telecalls. Timely R & D and innovation of more high-end and perfect technologies and systems to increase the competitiveness of enterprises.
- Conclusion and Implications
Compared with other peer companies, BYD's development of management information system cannot be called proactive. Most of the time, when enterprises encounter difficulties in the development process, they take corresponding countermeasures to solve them. They face the problems with a passive attitude, without looking at their own development from a long-term perspective, and without looking at their own development in the future. Eyes to examine the present. This method often brings a lot of losses to the enterprise, or slows down the pace of enterprise development in an inconspicuous corner. However, BYD pays more attention to the management information system, and has been using various methods to improve its management business level to adapt to its own development, such as introducing existing mature systems for management, or cooperating with other companies to jointly develop new ones. MIS.
Different choices of solutions will also lead to different decision-making situations, such as the introduction and adaptation of BYD and the independent research and development of Tesla. The former is more stable and faster, while the latter can better grasp the entire system. There is no optimal choice for different companies. explain. The imported system is difficult to compare with the self-developed system in terms of fit, but its stability also makes it difficult for the self-developed system to match.
After investigating and researching the development process of BYD's management information system, it is not difficult to find that the investment in management information system is a decision with high initial cost and long-term effect. If you do not update and develop your own core management system in a timely manner, there will not be too obvious reactions and problems in the short term, but as time accumulates, the entire system will be overwhelmed and endangered. Therefore, from a long-term perspective, the investment and improvement of management information systems is an indispensable part of the long-term development of enterprises, and should be highly valued by enterprises.
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