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Industry:FMCG
Feihe
Customer Profile

Feihe, China's leading infant formula company, was founded in 1962. It is one of the earliest milk powder companies in China and the dairy company with the largest market capitalization in the history of the Hong Kong Stock Exchange.

Demands and Challenges
  • Smart supply chain construction is one of the key goals of Feihe’s comprehensive digital upgrade
  • Small-batch, high-speed flexible production requires agile, flexible, and collaborative supply chain support.
  • The fastest 28 days of freshness from filling production to putting into baby bottles requires rapid turnover from raw materials to finished products.
  • Milk powder products, which have the most complex production processes and extremely high processing technology requirements, require fine, precise and accurate control of each material.
  • The intelligent manufacturing upgrade of Feihe factory requires matching intelligence on the supply chain side.
  • Optimize distribution routing, visualize and intelligently manage the distribution process, improve distribution efficiency and ensure product freshness
  • FLUX's solutions
  • FLUX WMS / FLUX TMS intelligent digital solutions
  • Intelligent warehouse management, warehouse automation level reaches 90%, and operation efficiency increases by 40%
  • Refined management of batches, expiration dates, packaging, first-in-first-out, work processes, picking rules, etc.
  • Visual traceability of the entire process from raw materials to production, storage, distribution, and delivery to consumers
  • Inventory sharing across the entire network, shipping information from warehouses in various locations is shared in real time, optimizing inventory structure and accelerating logistics turnover
  • Delivery route optimization and intelligent delivery management, more than doubling the delivery time
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    “By building a smart supply chain, Feihe can timely capture and accurately predict market demand through the traceability system, and achieve small-batch, high-speed flexible production, which not only more accurately meets consumer needs, but also stably guarantees the freshness of milk powder - from filling production to putting it into the baby's bottle, it only takes 28 days at the fastest. ”

    In recent years, Feihe has created a "fresh, safe and agile" supply chain system through the WCSC supply chain operation system and supply chain 4.0 dual strategy to improve production efficiency and the precision of milk powder quality control.

    In terms of operation management, Feihe relies on the "1+6+3" integrated supply chain system, gives full play to the role of the planning baton, implements the S&OP process operation system, proactively plans and continues to build new factories and production lines, and divides factories into cost-based and flexible types for differentiated operations.

    At the same time, all data from each system is uploaded to the data center in real time, and the data center performs unified data summary and analysis to achieve real-time monitoring and refined management of the entire production and supply chain process.

    Feihe's Tailai factory covers an area of ​​330,000 square meters. The factory has 8 rows of fully automatic warehouses with 11 floors and 4,600 cargo spaces. The towering shelves are filled with raw materials to be used and finished milk powder products that are about to be shipped out. They are waiting for tasks to be issued by the FLUX WMS system. WMS will tell the warehouse which raw materials and quantities are needed for the next production line.

    Through the interface platform, WMS receives information such as finished product offline warehousing or production plans from ERP and MES systems. WMS automatically calculates and allocates operation tasks in the warehouse according to preset rules, and issues corresponding operation instructions to intelligent equipment such as automated three-dimensional warehouses, automatic sorting lines, AGVs, and robotic arms through WCS docking. These operation instructions calculated through optimized algorithms and process arrangements enable efficient collaboration and load balancing between equipment, maximizing the overall performance of intelligent equipment and making the entire operation intelligent.

    The production process of milk powder is complex and involves many raw materials. In order to ensure product quality and freshness, each material needs to be carefully and accurately managed. The FLUX WMS system meticulously manages the batch, expiration date, packaging, first-in-first-out, operation process, picking rules, etc. of each material, and provides full visual traceability. From raw materials to production, storage, distribution, and delivery to consumers, you can understand every detail of the entire circulation process by scanning barcodes, truly giving consumers peace of mind.

    Similar scenes also appear in Feihe's 8 factory warehouses, 5 e-commerce warehouses, 8 regional center warehouses, and 3 fully automated three-dimensional warehouses. The storage area under FLUX WMS management exceeds 100,000 square meters.

    Feihe's business covers the country, and Feihe's warehouses are responsible for product distribution tasks for more than 2,000 dealers and more than 90,000 stores across the country. FLUX WMS enables Feihe to share inventory across the entire network. Shipping information at warehouses in various locations is transparent, shared, and fully traceable in real time. By optimizing the inventory structure, it compresses the inventory of finished products across the network, accelerates logistics turnover, and achieves the KPI indicator of only 28 days from raw material filling to loading into baby bottles.

    FLUX TMS realizes the intelligence and visualization of finished product logistics and distribution for Feihe. Customers and dealers can place orders by themselves. The TMS system generates a transportation plan with one click, automatically matches and dispatches vehicles based on the model volume, and scans the code in real time for loading. The driver locates the itinerary through the mini program and checks the logistics information in real time. The product is delivered to the dealer and signed for with one click on the mobile terminal, achieving precise control of omni-channel inventory and cargo flow.

    Project income and value
    • Realize digital upgrade of smart supply chain
    • Warehouse automation level reaches 90%
    • Inventory sharing across the entire network improves inventory circulation efficiency
    • Delivery route optimization and intelligent delivery management, more than doubling the delivery time
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