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Xinpeng Lianzhong Automotive:
Case Study for Manufacturing Industry

About Xinpeng Lianzhong Automotive

Xinpeng Lianzhong Automotive Co Ltd was incorporated back in 2010, as a joint venture between Shanghai Xinpeng Industrial Co Ltd and SSDT Technology (a subsidiary of SAIC Motor). They specialize in the smart manufacturing of automobile parts and act as a core component supplier for SAIC Volkswagon. The company has factories located in 4 cities: Shanghai, Ningbo, Changsha, and Yangzhou.




Singapore, SEA

Company Size


The Challenge

Xinpeng Lianzhong Wrestles with Industry Challenges: High Competition, Rising Costs, and Workforce Turnover in the Automotive Sector

Xinpeng Lianzhong faced pressure when the automobile industry slowed down – there were over 100 automobile suppliers in the market vying for business in the same space. Raw material costs were on the rise, and at the same time, SAIC Volkswagon and other OEMs had tougher requirements for their systems that Xinpeng Lianzhong had to fulfill. They also faced an issue of a high turnover rate in their factories, and difficulty in recruiting new production line workers. Other pain points include: having to collaborate with different providers and fulfilling the Formel-Q quality guideline in the Product Life Cycle, from supply chain evaluation to project-related risk assessments. The enterprise knew they had to shake up their business operations and system in order to stay competitive and relevant in a saturated market space.

The Solution

Xinpeng Lianzhong Transforms Operations: Smart Manufacturing Success with Yonyou Leads to Increased Productivity and Efficiency

Xinpeng Lianzhong has worked with Yonyou back in 2014, with the adoption of systems such as ERP, E-HR, Manufacturing Execution System, Product Lifecycle Management, etc. This time, their goal is to achieve smart manufacturing.

With the yonyou Smart Industrial Internet platform, Xinpeng Lianzhong was able to achieve collaborate with upstream and downstream parties of the production life cycle in real-time. Labor work that can be automated was done, so they could reduce dependency on physical manpower. This in turn increased the productivity level at the factories.

The results

1,800 interconnected devices; 24 billion pieces of device data collected per month; Achieved real-time collaboration with Volkswagen automakers, 26 equipment suppliers, and 99 spare parts suppliers; Output increased by 22%; manpower needed decreased by 31%, and defects dropped from 3% to 1%.

Smart Logistics: Using the OPCS interface, Yonyou was able to ensure the continuous flow of information across multiple vendor devices. This allowed the business to print an average of at least 30,000 bar codes daily and simplified each worker’s job scope tremendously. Workers were able to understand the simplified workflow better, making it more productive and efficient.

Smart IoT: Through network reconstruction and upgrades of equipment in Xinpeng Lianzhong’s factory, each piece of equipment is associated with a process flow. Using industrial big data analysis and mining, stakeholders can view and monitor onsite production lines in real-time, and receive notifications too. There is a total of 1 stamping line, 4 uncoiling lines, 361 welding islands, and 31 AGV transport vehicles.

Industrial Collaboration: Through the OPCS interface, Xinpeng Lianzhong was able to collaborate online with 99 suppliers, 1041 workers, 15 hiring firms, Volkswagon OEMs, and more than 200 vehicles daily. The accuracy of orders and efficiency level for procurement and accounting have vastly improved compared to traditional mail and phone thanks to our procurement management software.

Mobile Management: Using the “Xinpeng Lianzhong APP”, managers can view overall equipment effectiveness, machine capability index, logistics, production lines, and more in real-time wherever they are. This allows leaders to make executive decisions in a timely and informed manner.

Trackable: As each product and resources have a unique identification tag, it is possible to track its full life cycle from start to end. All data are stored in Cloud for easy access.

Why Yonyou

  • A complete retail industry suite solution that helps to promote organizational performances.
  • The new era technology which enables customers to adapt to the business change and rapid development.
  • With the trustworthy history, Yonyou is recognized by the public as one of the international industry leaders.

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