Virtual Manufacturing Improves Market Competitive Power of Drying Equipment Industry in China

According to incomplete statistics, at present, there are more than 500 domestic drying equipment manufacturers with annual sales exceeding RMB 3 billion. With the rapid development of China's economy, China's drying equipment manufacturers have mushroomed. However, compared with foreign advanced technologies, there is still a certain gap between the development of China's drying equipment industry. Faced with increasingly fierce market competition, some experts said that at present, China's drying equipment industry needs to apply a new management model: virtual manufacturing.

"Virtual manufacturing", also known as "business outsourcing", is the manufacture of drying equipment companies that weakens part or all of the intermediate manufacturing links of the business chain, implements commissioned collaborative processing, and develops and designs products upstream of the business chain, and markets downstream (including After-sales service) and other links to strengthen a manufacturing management model.

There are three main forms: First, the manufacturing of dry equipment, also known as OEM manufacturing. Refers to the core drying equipment companies to put the designed products into the production of professional contractors, and in the final product, marking the core drying equipment company's well-known brands. The second is the design and manufacturing of Dingpai, which means that the sellers purchase the manufacturer's design materials to allow the OEM dry equipment companies to organize the production and manufacture of the products and brand their products for external sales. Third, process outsourcing manufacturing, usually refers to the core drying equipment companies to spread some of the rough processing and low technological content of the process to the surrounding areas of low labor costs dry equipment companies took the process, the key processes such as finishing, assembly, testing and other processes assigned to Control yourself. Orders are controlled by themselves. This model is characterized by medium-sized (fine) and large (strong) dumbbell-shaped structures in the organizational form of drying equipment.

Experts believe that “virtual manufacturing” is an external manifestation of various elements in the industry chain that are regularly and targeted to move around the world. For advanced drying equipment enterprises, their movement tends to be in the high-end of the industrial chain, and finally reach the (relative) control of the entire industry chain; for small and medium-sized drying equipment enterprises and weak drying equipment enterprises, their movement tends to be an industrial chain. The middle and low end of the industry chain has become a link in the industry chain or parts of a certain link. Eventually, it has “extended birth” in an advantageous drying equipment company, thus forming a dynamic industrial ecosystem.

The drying equipment industry in China has more than 1,000 drying equipment companies in the same industrial layout in China, resulting in a large total production volume and low level of repeated construction; “big and full” and “small and complete” phenomena are common, and drying equipment companies exist internally. Strong self-supporting consciousness, long production cycle, high cost, unreliable performance and reliability of the whole machine, and unresponsiveness to market demand. However, the competitive advantages of foreign machine tool drying equipment companies are clearly on the same day, and the industry's drying equipment companies are mostly small dry equipment companies, which are generally 220-500 people, and no more than 800 people. The sales revenue is in the tens of millions or even hundreds of millions. Dollars.

Therefore, China's drying equipment industry must completely reduce the gap with foreign countries, it must be in line with international standards, the transition to virtual manufacturing. Use new development methods to continuously strengthen the competitiveness of the industry.