Designed for mass customization, Inspur Information’s supply chain was highly regarded for its refinement, efficiency, flexibility and resilience
SAN JOSE, California, July 7, 2022†BUSINESS WIRE)–Inspur Information, a leading provider of IT infrastructure solutions, has been recognized as part of the IDC Supply Chain Technology Leaders Program for its “Digital Supply Chain Enabled by the JDM (Joint Design Manufacture) Business Model” project.
The IDC Supply Chain Technology Leaders Program recognizes organizations in the Asia/Pacific region, excluding Japan, for their outstanding achievements in the digital transformation of supply chains. A total of 10 projects, including from Inspur Information, were selected by the jury composed of global IDC analysts, academic experts, experts from research institutions and end-user representatives.
Inspur Information continues to refine the JDM model and supply chains by leveraging new technologies such as AI, 5G, edge computing and cloud computing. This innovation has transformed the traditional, cost-effective supply chain into a new customer-centric supply chain, which was highly valued by the judges for its sophistication, efficiency, flexibility and resilience.
Reshaping the supply chain through digital transformation and customization with greater flexibility and efficiency
Inspur Information’s JDM model is a custom business model driven by customer needs. Riding the wave of integration of the cloud, big data and AI, cloud computing service providers are committed to developing innovative applications such as cloud, AI and edge computing, while looking for ways to disrupt the traditional business model for standardized server production. Customers need server manufacturers who can provide customized products, solutions and services to adapt to new business lines and scenarios. Inspur Information created the JDM model to better support cloud computing service providers and popularized custom products and services in the IT market, ushering in a new era of customization in the IT industry.
An agile, flexible and resilient new supply chain is the cornerstone of the JDM model. Inspur Information is making an ongoing effort in the digital transformation of the supply chain by establishing an intelligent, end-to-end supply chain system connecting upstream suppliers and downstream partners.
Inspur Information’s supply chain is designed for advanced mass customization far beyond the industry level. Personalized product orders account for more than 80% of Inspur Information’s business, with nearly 200 products in 115,000 configurations. Despite this complexity, Inspur Information remains a global leader in supply chain agility and continues to reduce costs. The company has shortened the development cycle for new products from 1.5 years to 9 months and can go from development to delivery in less than 3 months. 97% of production orders can be confirmed within 24 hours and delivered within 5-7 days. While prices for key components increased by a total of 5.5% in 2021, Inspur Information was able to reduce the cost of key components by 3%, resulting in a total cost saving of nearly USD 150 million for its customers.
A resilient, intelligent supply chain for on-demand delivery in the global supply crunch
Despite global component shortages, Inspur Information’s component supply remains stable, even with increasing sales. In the first quarter of 2022, the company’s revenue grew more than 48% year-over-year.
Inspur Information’s supply chain resilience is the result of years of efforts to improve the supply chain process and digital transformation. Inspur Information requires each part to have a replacement rate greater than 100% and has defined exact requirements for the geographic distribution of suppliers. Its highly fault-tolerant supply chain enables Inspur Information to easily resolve component supply issues through component replacement. In 2021, Inspur Information completed replacement verification for more than 1,500 key components, eliminating delivery risks for 150,000 servers.
Inspur Information has implemented dozens of information systems such as ERP, MES, WMS and PLM, and has built a global supply chain control tower, a panoramic customer ecosystem platform, a supplier ecosystem collaboration platform, a digital factory and other core platforms. All business processes are highly automated, generating 96% of production orders and executing 98% of material plans automatically. The supply chain control tower enables the formulation of forecast-based demand and material procurement plans as well as order-driven production and material plans. This forms a dual management model for matching supply and demand to support planning and coordination, production capacity planning and 52-week rolling forecasting for Inspur Information’s 10 manufacturing facilities, which are strategically placed around the world. Meanwhile, Inspur Information has established 6 cross-organizational supply assurance teams working to strengthen key suppliers, strengthen tier-2 and tier-3 supplier management, improve inventory sharing policies and ensure for a stable supply of components and materials. As a result, the company’s order-time fulfillment rate has remained above 98%.
Building a model for IT companies seeking digital transformation
Inspur Information has become the world’s second-largest server vendor and the largest AI server vendor in the world, thanks to initiatives such as the JDM model, supply chain reconstruction, and digital transformation. The company’s success is about more than delivering digital and intelligent products and solutions across industries. It is also paving the way for the industry to follow with its innovative business model and supply chain powered by digital and AI technologies.
About Inspur Information
Inspur Information is a leading provider of data center infrastructure, cloud computing and AI solutions. It is the second largest server manufacturer in the world. Through engineering and innovation, Inspur Information delivers advanced computing hardware design and comprehensive product offerings to key technology sectors such as open computing, cloud data center, AI, and deep learning. Performance-optimized and purpose-built, our world-class solutions empower customers to address specific workloads and real-world challenges. For more information, visit https://www.inspursystems.com†
Check out the source version at businesswire.com: https://www.businesswire.com/news/home/20220707005306/en/
Interprose for Inspur information