Yuanda Electronics: Supply chain determines future success or failure

Since the beginning of this year, the market demand for LED lighting terminals has increased rapidly, and the general capacity utilization rate of lighting companies is close to saturation. At the same time, it also drove the capacity utilization rate of the chips and packaging links in the upper and middle reaches to increase rapidly, and the overall trend of the industry is improving.

But at the same time, there are also many problems and reflections. There are both the quality of LED lighting that are reflected by the "quality gates", and the vicious competition of the whole industry caused by the capital of listed companies and the channel's dark war. There are also bankruptcies and bosses running. The industry is shocked and vigilant.

In addition to standardizing the product quality in the terminal market, how to build an efficient, complete and low-cost supply chain system is the key to establishing its core competitiveness.

Especially in the past few years, the LED industry has changed rapidly, and the supply and demand situation and price changes in all aspects of the supply chain have become the focus of special attention of LED companies.

On the morning of November 26th, the “Supply Chain Strategy” of the 2013 High-tech Conference, which was named by Jingke Electronics, debuted at the Guangzhou World Trade Center, including more than 500 LED CEOs and representatives of industry enterprises including G20 Summit members. In-depth discussion and exchanges on how to reconfigure the supply chain in the era of LED lighting applications, and strengthen cooperation between upstream and downstream industry chains.

Xiao Guowei, Managing Director of Jingke Electronics, Zhou Xuejun, Marketing Director of Philips Lumileds Asia, Li Jiansheng, Chairman of CDH Technology, and Liu Wei, Chairman of Yuanda Electronics, gave a keynote speech on packaging enterprise positioning, development of middle and upper reaches, and how to do a good job in the supply chain. He also had a round-table dialogue with Chen Bin, general manager of Zhonglong Transportation, and Ye Jianbo, general manager of Zhongheng Paiwei.


“Customers are pursuing not only low prices, but the highest value. How to create the highest value and provide customers with good products. In addition to our own innovation, the value brought by the supply chain is immeasurable.” li Liu Wei It means that the packaging industry, equipment, materials and applications have their own unique value chain and profit model. Whether it is a successful manufacturer or agent, it must be an expert in this industry. Understanding the industry and understanding the rules of the industry is a very important competitive indicator.

Chairman of Yuanda Electronics, Liu Wei


Now the manufacturing cost of the LED industry has reached a limit, how to change? Liu Wei believes that, first, the integration of internal resources of enterprises; second, continuous innovation of products; third, cooperation in supply chain. In the future market, real competition is not the competition between enterprises and enterprises, but the competition between suppliers and suppliers, supply chain and supply chain. The supply chain brings the value chain, which makes all businesses create value.

“Determining the best partners to ensure the maximization of the supply chain. This way, the company is connected by the external flow, and the procurement and production of the company becomes a chain, thus solving the problem between the customer and the production. This is like martial arts novels. Supervise the second pulse.” Liu Wei said that the value of the supply chain has a huge impact on the enterprise and is irreplaceable.

The supply chain accounts for half or even more of the company's revenue. From the basic level of the supply chain, how to control costs, reduce costs, and enhance the competitiveness of enterprises themselves. 60% of the variable cost of the enterprise, that is, liquidity, is governed by the organization's external decision-making. The supply chain concept, from the second-tier suppliers to the first-tier suppliers, to wholesalers, distributors, customers, in this supply chain, 60% of the capital is made externally. Logistics overhead, mainly product transportation, warehouse costs, logistics management, storage costs. These are the costs involved in the supply chain. Supply chain prices are low and there are still huge business opportunities.

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