Schneider Electric, the leader in digital transformation of energy management and automation, has successfully completed the digital transformation of its Smart Distribution Center (DC) in Shanghai, China. This site is Schneider Electric’s second global distribution center that deploys the company’s EcoStruxure solutions to drive end-to-end efficiency in the industrial environment. The company’s first Smart Distribution Center is in Sydney, Australia.

Schneider Electric was recently ranked 11^th in Gartner’s 2019 Top 25 Supply Chain rankings^*. The Shanghai Smart DC, coupled with other digitization initiatives such as its regional Transportation Control Tower, boosts end-to-end visibility by detecting and mitigating supply chain issues, incidents and interruptions, significantly improving predictability and reliability for customers and enhancing delivery excellence.

This is especially crucial in the Chinese logistics market which continues to expand, with intelligent logistics investments expected to exceed 1 trillion RMB (€12.9 billion) by 2025. The total cost of logistics is 14% of the total GDP in China – much higher than in Europe where it is below 10%. However, to maintain global competitiveness, China’s logistics sector urgently needs industrial upgrading, cost reduction and efficiency improvement.

For Schneider Electric, the establishment of its latest smart distribution center not only shortens its delivery time to customers but also optimizes the supply chain operations to provide delivery excellence. The company’s Shanghai Smart DC serves as a model for other industry players to invest in building intelligent logistics and paves the way for the digital transformation of China’s logistics industry and sustainable, smart manufacturing.

The Shanghai Smart DC is Schneider Electric’s largest distribution center in China, with an area of 22,000 square meters, serving 1,000+ customers across the country. Over the past three years, this site has gradually deployed smart distribution solutions to reach a delivery quality and inventory accuracy rate of above 99.99% and increase its efficiency by 30%.

Some of the benefits that the Shanghai Smart DC has realized from the implementation of EcoStruxure solutions include:

• Agile management & process efficiency: communicating effectively with upstream/ downstream suppliers as well as internal parties has optimized scheduling and is driving faster and better decision-making to improve customer satisfaction with better service.
• Asset performance management: real-time performance monitoring, analysis and predictive analytics are reducing downtime and creating more efficient operations.
• Empowered operators: innovative technologies including short interval management system (SIM), augmented reality and virtual reality, Radio Frequency Identification (RFID) traceability, Automated Guided Vehicles (AGVs), visual identification and using radio frequency (RF) across the whole process, have been deployed to empower operators and increase maintenance and process efficiency and significantly improve safety.
• Energy efficiency & reliability: reduced energy consumption through real-time insights delivered by EcoStruxure Power Monitoring Expert and EcoStruxure Power Advisor have shown potential energy savings of between five and eight percent.

“Schneider Electric will continue to leverage the technology, solutions, and operational experiences from its Shanghai Smart DC across its distribution network in China to ensure we can meet the growing market demand for smarter logistics and warehousing,” said Pang Xingjian, Senior Vice President of Schneider Electric China and General Manager of the Industrial Automation Business. “Our Shanghai Smart DC can be seen as an example to a wide range of enterprises of the benefits of applying innovative, digital technologies and show customers how they can move towards sustainable, smart manufacturing and logistics.”

The Smart DC Program is central to Schneider Electric’s Tailored Sustainable Connected (TSC) 4.0 strategy which aims to empower our teams, improve customer experience and end-to-end operational efficiencies through digitization.

“Brought to life with our EcoStruxure for Industry platform and architecture, the Smart DC will create a closed-loop ecosystem of end-to-end supply chain digital transformation, bringing more efficiency to the supply chain. It helps us to better serve our customers by making it easier for them to interact with us, and to improve their overall experience with Schneider Electric,” said Zhang Kaipeng, Senior Vice President of Global Supply Chain China, Schneider Electric.

The technology and solutions deployed at the Shanghai Smart DC comprise the complete EcoStruxure stack – including connected products, edge control, and apps & analytics – and cover Schneider Electric’s multiple domains of expertise. EcoStruxure Power helps sites to better manage and reduce energy consumption, while EcoStruxure Machine and EcoStruxure Plant help to optimize assets and drive operational performance. Some of the specific solutions contained within the Shanghai Smart DC include:

• PowerTags – wireless energy sensors that attach to circuit breakers and provide real-time electrical load data and e-mail alerts in the event of potential issues
• EcoStruxure Power Monitoring Expert – to monitor and analyze the performance of electrical power systems with power meters periodically polled to obtain real-time data for immediate viewing and analysis
• EcoStruxure Power Advisor – through cloud computing, artificial intelligence and other frontier technologies to achieve professional and lifecycle digital services, this offer improves the efficiency of operations and maintenance and ensures the safety and reliability of power distribution systems
• Altivar Process ATV930 – a new service-oriented frequency converter which, through its energy, asset and process performance management, meets most of the requirements of process control, improves equipment efficiency and reduces operating costs
• Modicon M241 – suitable for high performance integrated equipment with speed and position control and a powerful communications capability, this controller supports Ethernet, CANOpen, serial communication, and optional TM4 communication extension modules
• EcoStruxure Machine SCADA Expert – a machine performance and Kanban application that specializes in the management and monitoring of machine production lines
• EcoStruxure Machine Advisor – a cloud-based service platform for predictive machine maintenance that tracks machines in operation, monitors their performance and fixes irregularities to prolong the useful life of machines by design the algorithm in data spirit, we can have predictive maintenance like equipment warning, key parts remain useful life by design the algorithm in data spirit, we can have predictive maintenance like equipment warning, key parts remain useful life
• EcoStruxure Augmented Operator Advisor – a custom application that leverages augmented reality for instant diagnosis and contactless maintenance

*Schneider Electric ranked 11th in The Gartner Supply Chain Top 25 for 2019