Huawei transformed its supply chain with digital technologies and innovated its operations and management models, taking customer experience and revenues to new heights.
Now is the time for digital transformation
As well as enabling rapid growth, digital technologies help enterprises transform industrial value and reshape business models globally. Comparing the market capitalization of the world’s top-ten companies in 2010 and 2020 shows that digital natives, such as Apple, Amazon, Alibaba, and Tencent, are edging out companies in traditional industries like Shell and ExxonMobil.
The time is now for enterprises to digitalize if they hope to survive and thrive.
Objectives of Huawei supply chain’s digital transformation
Focusing on improving customer experience and creating value through digital and proactive supply chain, Huawei launched its integrated supply chain plus (ISC+) digital transformation project in 2015. To transform its operations and management models, the project comprised an intelligent two-layer supply chain business system, service-oriented processes and IT, and scenario-based algorithm modeling
Transformation covered six areas that centered on transitioning from:
- An offline-focused business model to both offline and online.
- A working model based on transmitting information in series to an operations model based on the collaborative and parallel sharing of information.
- High volumes of manual operations to automated system operations.
- A decision-making model based on personal experience and intuition to a decision-support model enabled by data analytics, unified data warehouses, and data models.
- Push-type planned allocation centered on Shenzhen HQ to pull-type resource allocation driven by forecasts.
- A centralized management model to one that facilitates independent decision-making by field offices, with capability support and supervision from HQ.
Our digital transformation journey
ISC+ supply chain transformation has moved through the phases of digitalization and intelligent digitalization. Digitalization built the foundation of Huawei’s digital capabilities, including its data foundation and service-oriented processes/IT. Intelligent digitalization builds on