Find out how Huawei saved millions by revamping its logistics to achieve a smart, efficient supply chain through digital transformation.
Highlights
Housed over 25,000 square meters, Huawei Songshan Lake Supply and Logistics Center provides an array of functions such as materials acceptance, storage, selection, matching, and distribution. To do so, it applies a range of advanced technologies, including radio frequency (RF), picking to light (PTL), goods-to-person pick-up (GTP), and Carousel.
Driven by agile supply and intelligent logistics, the center exemplifies Huawei’s shift from passive response to active perception. Years of transformation has enabled Huawei to evolve its ISC project to ISC+.
The ISC+ transformation project prioritizes smart logistics and digital warehousing. To date, we’ve visualized the entire logistics process; created transmit-receive reservation, loading simulation, RFID digital application and other products; and saved tens of millions of yuan.
Stretching over 14 sqkm of greenbelt land, Songshan Lake in Dongguan, China comprises 8 sqkm of freshwater lakes. In the midst of this pleasant natural environment sits a world-class automated logistics center — Huawei Songshan Lake Supply and Logistics Center.
Housed over 25,000 square meters, Huawei Songshan Lake Supply and Logistics Center provides an array of functions such as materials acceptance, storage, selection, matching, and distribution. To do so, it applies a range of advanced technologies, including radio frequency (RF), picking to light (PTL), goods-to-person pick-up (GTP), and Carousel.
All-in-One
Modular in approach, the logistics center includes areas for pallet storage and bin storage, goods-to-people picking, high-frequency material picking, and cargo consolidation. End-to-end business visualization and intelligent processing greatly improve collaboration and the operations of all logistics procedures.
- The pallet and bin storage areas cover all of Huawei’s raw-material management of PCBA veneers. The mater supply model of the central warehouse + WIP (work in process) warehouse performs various functions, including expiration management, damp-sensitivity management, online circulation inventory, and automatic replenishment. The multidimensional and multilevel material management model ensures high reliability when handling complex scenarios.
- With minimal requirements for manual work, the goods-to-person picking area is used for picking up low- and mid-frequency materials. The secondary cache warehouse is fully automated. It applies PTL technology, seed sorting, and automated, associated bar-code printing to achieve simultaneous multi-order processing and bar code traceability.
- The area for high-frequency material picking uses small stackers and rolling racks for automated storage and replenishment, and runs as a 3D process that consolidates storage, replenishment, and pick-up into one process. The system automatically issues orders, associates tasks, and applies PTL\RF relay sorting and foolproof picking.
- The cargo consolidation area sets up different spots for different deliveries. Multiple slide rails match with tasks, and work with unmanned AGV smart feeding carts that directly supply production lines to realize seamless interfacing between warehouses and production lines. Automated logistics can handle 10,000 order lines per day, with average daily stock-removal hitting16, 000 LPN (registered container code).
Driven by agile supply and intelligent logistics, the center exemplifies Huawei’s shift from passive response to active perception. Years of transformation has enabled Huawei to evolve its ISC project to ISC+.
In 1999, Huawei had just begun its integrated supply chain transformation. Our sales revenue was only US$1.5 billion. All we had was one factory in Shenzhen and 3,000 staff in the supply chain. Our sales revenue has grown 50- or 60-fold since that time to approach US$100 billion. But now, we have 10,000 supply chain staff. Looking ahead, I hope that when the company generates revenues of US$200 billion, we will be able to keep the headcount unchanged, and ensure the supply chain remains simple, responsive, and accurate.
Innovative Evolution
1999-2004: Integrated internal capacity to provide high-quality, low-cost services
Started the ISC (integrated supply chain) project, covering planning, procurement, orders, manufacturing, and logistics, and integrated processes for the supply chain, R&D, sales, service delivery and other areas.
2004-2014: Integrated global resources and transformed network layout for a fast, close-to-customer response.
As Huawei expanded into the global market, its customers were increasingly global operators, enterprise and industry customers, and millions of individual consumers. Huawei began to lay out the global supply networks and create global logistics ecosystems to provide close-to-customer services and make rapid responses to customer needs.
2015-2020: Focused on customer experience and creating value
Initiated ISC+, focusing on customer experience and transforming from passive response to active services; externally strengthened collaborative capabilities; and internally created value for customers through digital innovation.
Transformation Continues
The ISC+ transformation project prioritizes smart logistics and digital warehousing. To date, we’ve visualized the entire logistics process; created transmit-receive reservation, loading simulation, RFID digital application and other products; and saved tens of millions of yuan.
Born for intelligence and agility
The smart logistics and digital warehousing project applies IoT, big data, IT service platforms and other technologies that use the industry's leading digital transformation practices. We work with partners across the logistics value-chain, creating a robust ecosystem that includes smart resource planning and automated materials implementation. The construction of real-time visible, secure, efficient, and on-demand delivery enhances customer experience and improves efficiency.
Smart logistics optimizes processes, matching the best automation tools with equipment according to different node types and scenarios, thus achieving hour-level performance and greatly improving work efficiency.
Our warehouses apply integrated wide- and narrow-band eLTE wireless communication technologies; NB-IoT and other data information platforms; and AGV unmanned vehicles, automatic code scanners, and other automation equipment. These technologies connect NB-IoT to trays and forklifts to automate warehousing and inventory and ensure precise asset positioning and tracking, thus creating a fast and efficient digital storage platform.
The system seamlessly connects node operations and physical transportation, provides early warnings for active risks, and delivers the full-range of visible management, including the one stream of materials concept. Through mobile apps, AIS, IoT, and other advanced logistics technologies, the system perceives the locations of vehicles, the operating status of warehouses, and other information in real time.
By transparently sharing information between all sections and visualizing material flows, the system better coordinates people, vehicles, goods, and warehouses. At the same time, it realizes real-time interconnections with external risk data, enabling early warnings and intelligent reminders of alternative options. In the distribution process, big data and AI make intelligent calculations on cargo storage plans and optimal transport routes to improve distribution efficiency and optimize asset use.
With visualization spanning the whole lifecycle process from production to transportation, people and materials can now communicate much more efficiently. Automation has reduced costs, improved data precision, and promoted cross-departmental and cross-enterprise operations and management. Through the provision of integrated data integration services, customers can receive better and faster smart logistics experiences.
Huawei is a leading global ICT solutions provider and enabler of digital transformation. We work closely with our global partners across the logistics ecosystem to provide cutting-edge digital logistics solutions, intelligent resource planning, and automated goods fulfillment to continually build more connections.
