Company Introduction
Established in 1984, Wolong Electric Drive Group Co., Ltd. is a global leader in the motor and drive control industry. The company ranks second in the global industrial motor market and first in China. Its production bases are spread across China, Vietnam, Austria, the UK, Germany, Poland, Italy, and other regions. In 2021, Wolong’s Vietnam factory was completed, with an annual production capacity of 5 million units, serving the Southeast Asian and global markets.
Application Industry
Application Regions
Mainland China, Vietnam
Application Product
Business Challenges
The Vietnam factory primarily sources materials from Mainland China, which are then exported to Vietnam, with local Vietnamese and other international procurement accounting for about 20% of the total. To further control costs, there was a need to continuously increase the proportion of local procurement. Although the Vietnam factory uses the same ERP system as domestic factories for basic procurement, inventory, and accounting management, it lacked effective tools for supplier management, sourcing, procurement contracts, and supply chain collaboration. This led to numerous challenges in procurement execution, efficiency, and compliance.
Solutions and Project Value
Leveraging Yonyou BIP, a digital procurement management platform was built for the Vietnam factory. The platform deployed multiple solutions, including multi-language support, multi-currency handling, exchange rate management, customs declaration forms, international invoice types, overseas supplier management, and global procurement capabilities.
These features meet the business needs of various international procurement scenarios, significantly improving the supply chain efficiency of the Vietnam factory. The On-Time Delivery (OTD) rate reached 98.5%, the First-Time Quality (FTQ) rate exceeded 98.7%, the supplier localization rate increased to 40%, and the average new product development cycle was shortened by 10 days.
