It is the king of global foundry, a global supplier of many multinational giants, and its factories are spread across five continents. Its head, Guo Taiming, a native of Shanxi, took this company, which started with the production of black and white TV knobs, to the throne of the world's foundry king in 40 years. It is Foxconn.
Foxconn currently has more than 200 subsidiaries and more than 1 million employees worldwide. Already formed the "two-site research and development, three-zone design and manufacturing, global assembly and delivery" pattern, whether it is once dominated by the world of Joakia, Motorola, Dell, or the current apple, Huawei, Xiaomi, is its foundry client.
The computer, mobile phone, and TV brand you use every day is not Foxconn, but its whole machine or parts may be from Foxconn's assembly line.
In the industry's view, Foxconn can grow into a giant in the industry in just 40 years, and its incomparable speed and perfect supply chain are inseparable.
To what extent does Foxconn's speed exaggerate? Once, the electronics factory in Taiwan was 853 speed, that is, 85% of the products could be shipped in 3 days, and then Foxconn pushed to 985 speed, that is, 98% of the products would be out in 5 days. goods.
This extreme speed has already caused some manufacturers to complain.
But Guo Taiming still has to challenge this limit. He gave Foxconn a speed of 982, that is, 98% of the products can be shipped in 2 days.
In the R&D and manufacturing of new models, Foxconn also does not let more, let others use 4 months, Foxconn only 6 weeks.
For Foxconn, time is the cost. One of the words that Guo Taiming often hangs on his lips is that people who are fast make money, and people who are slow are selling stocks.
From 1996 to 2006. Foxconn grows at a rate of 50% every year, perfectly interpreting the eternal rule of what is called "the world's martial arts, only fast."
In order to improve the speed of Foxconn, Guo Taiming has made a lot of effort.
1 24 hours work, 48 hours relay.
In order to pursue the ultimate speed, Guo Taiming constantly compresses the shipping time, and customers also demand that Foxconn be faster and faster. In this case, Foxconn's assembly line is often operated 24 hours a day.
Even under extreme conditions, Foxconn can guarantee the fastest speed. In 1988, Shenzhen’s power supply was insufficient due to the surge in power of the factory, and there was often no power outage. When the electricity stops, the assembly line stops running. When the electricity came, even in the morning or two or three, the employees had to get up from the bed to work.
Through this almost perverted approach, Foxconn has achieved a speed that is beyond the reach of its peers.
In addition to the 24-hour shift, Foxconn also created a 48-hour design relay system.
Foxconn has two R&D centers around the world with a time difference of more than ten hours. When the engineers of the China R&D Center got off work, the engineers on the other side of the ocean started to work, and the two sides completed the design in the relay race. Many products can be designed in just 48 hours.
2 The bonded area is built in the Foxconn Park.
On January 12, 2001, China Customs issued a plaque for the bonded factory to Shenzhen Longhua Foxconn. China's first bonded factory was born.
Perhaps someone will wonder why the bonded area will be built in a factory of a company? This is inseparable from the customs clearance environment at the time.
Since the reform and opening up, Shenzhen has been the city with the most openness. The Customs highway customs clearance business is growing at a rate of 10% every year. Every day, tens of thousands of vehicles pass through customs clearance. Among them, a considerable part of the vehicles come from the Longhua Foxconn factory in Shenzhen.
In the traditional mode, the customs clearance vehicle in addition to proofreading, recording a variety of documents, but also to cover seven or eight official seals, the entire process takes 1-2 minutes. At the peak of customs clearance, trucks often have to queue for a long distance of one or two kilometers.
This is fatal for Foxconn, who regards speed as life.
After the establishment of a bonded factory, it takes only four or five seconds to release a car. The reason is that many customs clearance procedures are forwarded to the Longhua Free Trade Zone.
In the bonded area, Foxconn continues to improve customs clearance efficiency through technology and streamlined processes. Foxconn has developed an electronic customs clearance system that electronically processes all programs and implements networked supervision. After the model facility, the filing time was shortened from the original 15-40 days to one day, and the customs clearance time was reduced from the past few days to five minutes.
3 Build the factory to the customer.
In order to reduce delivery time and respond to market demand as quickly as possible, Foxconn has built hundreds of factories around the world, most of which are based on the location of Foxconn's major customers, such as Compaq and Dell headquarters. A foundry is established nearby, and customers can pick up the goods at any time according to their needs.
The result of too fast is that the raw materials and finished products of the Foxconn warehouse are basically zero inventory or negative inventory. When the material arrives at the factory, the project team will quickly transport the materials away. The finished product has just come down from the production line, and the employees responsible for the supply will quickly load the finished product on the road.
Foxconn also used this speed to defeat the former global foundry king LG, the United States Flextronics, and let a number of Taiwanese foundries close down, causing these companies to hate Guo Taiming.
There is a supply chain model called Foxconn mode.We all know that Foxconn's customers are all over the world, the factories are all over the world, and the suppliers are even more beautiful, which puts high demands on their supply chain coordination.
According to Zhou Lei, a post-doctoral researcher at Tsinghua University and a researcher in supply chain, Foxconn is able to use speed as the king because of its advanced technology and perfect system to achieve precise time management and multi-format collaboration.
Zhou Lei further explained that the core of Foxconn's efficiency is the ERP system, which is based on JIT (instant production) and VMI (supplier management inventory), forming precise time management, which makes Foxconn's production time accurate. In the second, more products such as apples and millet can be processed at the same time, and these may all be in short supply in the market. Processing more products at the same time means that its time profit rate is high.
Foxconn also combines supply chain and e-commerce to form a networked management. Foxconn E-Commerce is an internal transaction that only applies to suppliers and Foxconn. Zhou Lei believes that the core of the enterprise resource plan is material management, and Foxconn purchases materials and parts through this e-commerce platform.
Foxconn also uses this platform for supply chain finance. Foxconn generates tens of millions of orders every year. With the orders generated by this platform and the influence of Foxconn itself as a core company, Foxconn helps suppliers achieve order financing. And itself, it also uses the customer's orders to finance the bank and use these funds to maintain the operation of the production line.
In addition, Foxconn has also formed a full-link operation. Foxconn's product link front is very long. Many parts, especially core components, do not need to be purchased at all, but are self-sufficient.
All of the core strengths in Foxconn are manifested in the widely circulated CMM model. This model is most proud of Guo Taiming. He once proudly said, "Who can understand the essence of Foxconn CMM model, who will not hesitate Whoever buys our stock will make a lot of money."
The CMM consists of three words: C is component, which represents key components; M is module, meaning module; M is move, which means fast moving.
C: Key components.
No matter which manufacturing industry, it will not deny that key components are the root of its product shipments.
In order to put the supply of key components under his control, Guo Taiming has long consciously conquered the technical and production problems of key components. In the 1980s, he solved the connector problem. In the 1990s, he set foot in the field of casings. In 2003, he founded Innolux to produce LCD screens.
This series of actions has made Foxconn's control over key components far higher than its peers. It is also the R&D production capacity of these key components that global giants such as Apple, Huawei and Dell are rushing to Foxconn.
M: Modular.
Modular production guarantees that Foxconn can assemble and ship quickly regardless of the level. Its two-site R&D, three-zone manufacturing, and global assembly shipments have been so successful, thanks to their efficient modular operations.
The module is a standardized product integration state. It is different from assembly. Assembly is only a combination of parts, but the module does have the best arrangement between components, which not only reduces the total number of components, but also reduces production costs. Improve efficiency.
In this way, Foxconn further reduced the shipping time.
M: Fast moving conversions.
Mobile conversion refers to the rapid completion of product design to global shipments, key components and modularity, and ultimately to mobile transformation. But Foxconn's fast-moving transformation relies not only on the two, but actually includes Foxconn's upstream and downstream integration.
Foxconn not only integrates with upstream customers, but also integrates upstream customers into its own IT management system. It also cooperates with downstream customers to develop and accurately understand the changes in consumer demand, so as to produce products that satisfy consumers' tastes in the shortest time.
Guo Taiming believes that CMM is not only an efficient model, but also an efficient platform that integrates various resources and platforms, just like an aircraft carrier.
Through this aircraft carrier, Foxconn integrates resources from around the world to meet the needs of customers around the world. Under the unified deployment of the company's ERP system, Foxconn realized zero inventory as early as many years ago.
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