Alibaba’s “New Manufacturing” plan aims to revolutionize garment production

Alibaba’s “New Manufacturing” plan aims to revolutionize garment production


This week’s top stories include
Alibaba’s “New Manufacturing” plan aims to revolutionize garment production, Chinese
factories struggled to meet demand amid labor shortage and same-day shipping may
become the ecommerce norm. Remember to click the link below for the full
stories and two other featured articles. First up, Alibaba’s new manufacturing
plan aims to revolutionize garment production. Alibaba is rolling out a new
manufacturing initiative that utilizes AI and cloud computing in the garment
production process. By the end of 2018, Tao factory, a subsidiary of Alibaba, will
upgrade 200 traditional garment factories in partnership with Alibaba
cloud. As part of the upgrade, cameras are installed in production areas, which
capture factory worker movements as they make clothes. This footage is sent to a
server that converts the movements into data and calculates the amount of
clothing items made. The data is sent to Alibaba cloud, where customers and
factory management can access real-time updates on order status and estimated
completion date. As China shifts towards skilled labor and value-added
manufacturing, companies that are ahead of the curve are poised to set future
standards. Next up, Chinese factories struggle to meet demand amid labor
shortage. China’s workforce peaked in 2011 at 941 million. But it’s been on a steady decline since then. The current working
age population is 960 million. This may seem like a strong workforce, but from
2012 to 2017 the workforce decreased by 25 million—that’s the equivalent of
Australia’s entire population. Manufacturers are increasing benefits
and wages as they vie for available labor. But this isn’t necessarily enough
to draw in workers. And retaining labor can be just as hard as finding it.
Factories are already grappling with high raw material costs, rising rents and
stricter environmental regulations. Will the labor shortage be the final nail in
the coffin? Last up, same-day shipping may become the ecommerce norm. Technology is
allowing sellers to enhance the online retail experience in unprecedented ways.
But a distinct line remains between ecommerce and brick-and-mortar markets.
As online brands struggle to provide a premiere experience, shipping and
delivery will become a main factor determining which businesses meet their
KPIs. Many brands already offer Next Day Delivery, but a recent zebra technology
study predicts that 40% of parcels will be delivered within 2 hours by 2028.
While quick delivery can boost sales, 77% of warehouses said delivering products
on the same day is their biggest challenge. The accelerated growth of
drones and robots may ease this strain. However, various legislation is making it
difficult for companies to build fully functional drone delivery systems. But
companies continue to experiment, and eventual implementation is likely. Those
are just the top three stories from this week. To read the other two, follow the
link in the description below! Thanks for watching and tune in next week on Best
in Manufacturing!

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