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CCTV Visited Soonfor Software to Investigate the Challenges and Solutions of Digital Transformation for Home Furnishing Enterprises!

Published on: 2022-03-11

Dongguan has long established itself through manufacturing and is one of the most manufacturing-intensive cities in the country. On January 14, 2022, Dongguan issued its No. 1. municipal government document for 2022, Policy Measures of the Dongguan Municipal People's Government on Promoting the High-Quality Development of the Digital Economy, providing targeted policy support with real financial incentives for industries and enterprises at different output scales and development stages.

Soonfor Software, as a key software enterprise in Dongguan, has long attracted attention from authoritative media. On March 8, 2022, representatives from CCTV visited Soonfor Software and conducted an in-depth interview on the theme of digital transformation for small and medium-sized home furnishing enterprises.

Reporter Learns About the Home Furnishing Informatization Model

Afraid to Transform, Burdened with Doubts?

The reporter first visited the Yajuge factory in Dongguan together with staff members from Soonfor Software. At the factory, there was a large amount of work in progress and substantial inventory, and the management approach was still relatively traditional. Soonfor consultant Mr. Chen identified the problem points on site and provided many solutions.

Mr. Chen of Yajuge said that he had been paying attention to informatization for quite a long time, and under the current pandemic environment, he felt that enterprise management was somewhat unable to keep up. However, he was still relatively hesitant about whether to carry out informatization transformation. Mr. Chen said, "What I am specifically worried about is whether the investment will be proportional to the return. I am also considering whether, after implementing informatized management, the management process will become even more chaotic. The results are still unknown."

In response to Mr. Chen's concerns, Consultant Lai of Soonfor Software provided selection factors from five aspects, including process reengineering, refined control, digital application, and intelligent layout, and also explained the implementation plan in detail on site.

Many enterprises have misunderstandings about digital transformation. If informatization is implemented, will all of the enterprise's current equipment be eliminated? After all, software and hardware together represent a considerable cost. In fact, this is not the case. Consultant Lai of Soonfor Software said, "Putting an informatization system online does not mean that all equipment must be replaced as a whole. On the hardware side, equipment that can still be used can be upgraded and reused to save costs. For solid wood furniture enterprises, the entire management process can be connected through workstations, barcode scanning, and similar methods, forming coordinated and balanced management."

From the government's side, digital transformation is currently being strongly supported. For example, subsidies can be applied for when purchasing systems or equipment, and Soonfor Software can also assist with some of these applications. If an enterprise performs well in informatization, the government may also use it as an informatization demonstration unit for other enterprises that want to transform to visit and learn from, while also giving the enterprise certain subsidy support.

Successful Transformation: Performance Doubled, Like Adding Wings to a Tiger

As a large private group enterprise with considerable scale and strength in Guangdong's furniture industry, Wanhengtong Group has successively launched brands such as Shengdisibao and Yinglun Huazhuang, and has cooperated with Soonfor for six years. Regarding the current demand for informatization among small and medium-sized home furnishing enterprises, Mr. Song, a director of Wanhengtong, said, "From the perspective of traditional industries, as national policies continue to improve and market demand continues to change, manufacturing enterprises have always had a need for digital and intelligent transformation."

After using Soonfor's informatization system, the changes brought about have also been obvious. Mr. Song said, "It has greatly shortened the cycle of production, supply, and sales, improved efficiency, saved costs, and multiplied our performance several times over. In recent years, our enterprise has used the Soonfor system very smoothly, and the way information is processed has become very fast. At present, the enterprise has already formed the habit of relying on data to make scientific decisions. With the help of Soonfor's informatization system, small and medium-sized home furnishing enterprises can become even stronger and receive real support in growing bigger and stronger."

For small and medium-sized enterprises, the biggest issue in transformation is whether the input and output are proportional. How should enterprises evaluate this kind of investment? Mr. Song said, "Our enterprise has used the Soonfor ERP system for so long that we feel it is well worth the money, because during the process of introducing ERP, the entire team and factory operations were greatly improved. If traditional enterprises want to grow bigger and stronger, they must make use of some of today's new technologies."

Regarding how to achieve perfect integration during the switch between old and new management models in the implementation of an informatization system, Mr. Song said, "In fact, the hardest thing for people to change is their way of thinking. When the company's senior management decided to use Soonfor ERP, they attached great importance to this project. During the subsequent implementation process, the Soonfor system was introduced step by step in every module, allowing our project participants to gradually accept this management model."

For enterprises, current digital transformation is facing issues such as industry uncertainty and the impact of the pandemic. How should these difficulties be overcome? Mr. Song said, "We must respond to all changes by sticking to fundamentals. No matter what link we are in, we must strengthen our internal capabilities and make ourselves stronger. Only then can we manage the enterprise well."

When difficulties arise, the government also provides timely policy support and subsidies for small and medium-sized enterprises, such as tax rebates, interest-subsidized loans, and insurance subsidies. These are also part of enterprise costs. This has also enabled enterprises to feel the advantages of the country's policies that benefit businesses.

Facing Difficulties: Soonfor Has Solutions, and Policy Support Helps

During the process of implementing informatization, Zhang Aiguo, Chairman of Soonfor Software, said, "At present, the biggest difficulty furniture manufacturing enterprises encounter is not knowing how to transform. As a traditional industry, the home furnishing sector generally has relatively backward management, and the material and product process flows are irregular. There is no complete overall solution specifically for the furniture industry, which causes enterprises to face difficulties in transformation."

Regarding the informatization transformation of furniture manufacturing enterprises, Mr. Zhang said, "At present, enterprises generally have awareness of digital transformation and understand that if they do not transform, it will be difficult for them to continue moving forward. Digital transformation can help solve many management problems." During the transformation process, Soonfor Software helps home furnishing enterprises gain a deep understanding of informatization and achieve successful transformation through the following points:

1. Segment the furniture sector, create pilot projects in each segment, then establish digital model sandboxes, and through explanation demonstrate to users step by step how to achieve the final result;

2. Build digital principle factories to show users the operating principles of future intelligent manufacturing and help them understand the entire smart manufacturing process;

3. Transformation requires talent support. Soonfor Software cooperates with Central South University of Forestry and Technology, has set up compulsory undergraduate courses on informatization, teaches informatization courses for the home furnishing industry, and has established a furniture informatization laboratory at the university, spreading talent in this way.

"Through development over the past two years, we have also felt that enterprises' willingness to undergo digital transformation is getting stronger and stronger. For example, in the past, customers had a long cooperation process with an average cycle of three months, but now it can happen within a week," Mr. Zhang said.

Regarding the concerns of small and medium-sized enterprises about cost investment, Mr. Zhang of Soonfor said, "Digital investment is not only a cost issue; more importantly, it is an investment. The essence of digitalization is to help enterprises remove intermediate links and wasteful processes, thereby helping enterprises improve efficiency."

The intelligent manufacturing model launched by Soonfor uses digital means to connect every management link when providing enterprises with an overall digital solution, achieving full collaboration and very high efficiency. Output value per employee can increase by one time, and the value brought to enterprises is very significant, far greater than the corresponding input cost.

As for Dongguan's No. 1. municipal government document issued at the beginning of this year, it contains many corresponding policies for the digital transformation of manufacturing, which is undoubtedly a shot in the arm for enterprises. On the one hand, subsidies are provided to manufacturing enterprises; on the other hand, subsidies are also provided to enabling centers such as Huawei. As Huawei's ecosystem partner in the home furnishing industry, Soonfor Software is jointly helping home furnishing enterprises achieve digital transformation with government support.

Zhang Aiguo, Chairman of Soonfor Software, Being Interviewed

Summary

The era of informatization has arrived, and only by keeping pace with the times can enterprises quickly adapt to internal and external changes. As China enters the era of the digital economy, when cost advantages no longer exist and consumer demand continues to upgrade, home furnishing manufacturing enterprises should actively embrace digitalization with the dual support of the government and Soonfor, so as to achieve long-term development.

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