Making Connections with Smart Logistics

Introduction

Occupying more than 25,000 square meters, Huawei’s Songshan Lake Supply and Logistics Center uses a wealth of advanced technologies, such as Radio Frequency (RF), Picking-To-Light (PTL), Goods-To-Person pickup (GTP), and Carousel, to provide functions like material acceptance, storage, selection, matching, and distribution.

The center exemplifies Huawei’s shift from passive response to active perception, the heart of which is agile supply and intelligent logistics, which has been achieved through years of transformation, evolving from ISC to the current ISC+ project.

The ISC+ transformation project prioritizes smart logistics and digital warehousing. To date, we’ve visualized the entire logistics process; created transmit-receive reservations, loading simulations, RFID digital applications, and achieved millions of CNY in gains.

Background

Stretching more than 14 square kilometers of greenbelt land, the Songshan Lake in Dongguan, China comprises 8 square kilometers of fresh water. In the midst of this pleasant natural environment sits a world-class automated logistics center — Huawei’s Songshan Lake Supply and Logistics Center.

All-in-One

Modular in approach, the logistics center includes areas for pallet and bin storage, goods-to-people selection, high-frequency material selection, and cargo consolidation. End-to-end business visualization and intelligent processing greatly improves collaboration and logistical operation procedures.

Pallet and bin storage areas cover all of Huawei’s raw-material management of PCBA veneers. The material supply model of the central + Work In Process (WIP) warehouse performs various functions, including expiration management, damp-sensitivity management, online inventory circulation, and automatic replenishment. The multidimensional and multilevel material management model ensures high reliability when handling complex scenarios.

With minimal requirements for manual work, the goods-to-person area is used for picking up low and mid-frequency materials. The secondary cache warehouse is fully automated, applies PTL technology, seed sorting, and automated and associated bar-code printing to achieve simultaneous multi-order processing and bar code traceability.

The high-frequency material area uses small stackers and rolling racks for automated storage and replenishment, and runs as a 3D process that consolidates storage, replenishment, and pickup into one process. The system automatically issues orders, associates tasks, and applies PTL\RF relay sorting.

The cargo consolidation area sets up different spots for various deliveries. Multiple slide rails match tasks and work with unmanned AGV smart feeding carts that directly supply production lines with seamless interfacing between warehouses. Automated logistics can handle 10,000 order lines per day, with average daily stock-removals hitting 16,000 LPN (registered container code).

The center exemplifies Huawei’s shift from passive response to active perception, the heart of which is agile supply and intelligent logistics, which has been achieved through years of transformation, evolving from ISC to the current ISC+ project.

“In 1999, Huawei had only just begun its integrated supply chain transformation. Our sales revenue was only USD $1.5 billion,” Deputy Chairman of the Board and Huawei Rotating CEO Guo Ping said. “All we had was one factory in Shenzhen with 3,000 staffed in the supply chain. Our sales revenue has grown 50-fold or 60-fold since that time, and is approaching USD $100 billion. But right now we have 10,000 in supply chain staff. Looking ahead, I hope that when the company reaches USD $200 billion, we will be able to keep the headcount unchanged, and ensure the supply chain remains simple, responsive, and accurate.”

Transformation Continues

The ISC+ transformation project prioritizes smart logistics and digital warehousing. To date, we’ve visualized the entire logistics process; created transmit-receive reservations, loading simulations, RFID digital applications, and achieved millions of CNY in gains.

Solution

Born for intelligence and agility

The smart logistics and digital warehousing project applies the IoT, Big Data, IT service platforms, and other technologies using the industry’s leading digital transformation practices. We work with partners across the entire logistics value-chain, creating a robust ecosystem that includes smart resource planning and automated materials implementation. The construction of real-time visible, secure, efficient, and on-demand delivery enhances the customer experience and improves efficiency.

Smart logistics optimizes processes, matching the best automation tools with equipment according to different node types and scenarios, thus achieving hour-level performance and greatly improving work efficiency.

Our warehouses apply integrated wide and narrow-band eLTE wireless communication technologies; NB-IoT and other data information platforms; and AGV unmanned vehicles, automatic code scanners, and other automation equipment. These technologies connect the NB-IoT with trays and forklifts to automate warehousing and inventory, and ensure precise asset positioning and tracking — thus creating a fast and efficient digital storage platform.

Benefits

The system seamlessly connects node operations and physical transportation, provides early warnings for active risks, and delivers a full-range of visible management, including the one stream of materials concept. Through mobile Apps, AIS, the IoT, and other advanced logistics technologies, the system perceives vehicle locations, warehouse operating status, and other information in real time.

By transparently sharing information between all sections and visualizing material flows, the system better coordinates people, vehicles, goods, and warehouses. At the same time, it realizes real-time interconnections with external risk data, enabling early warnings and intelligent reminders of alternative options. In the distribution process, Big Data and AI intelligently calculate cargo storage plans and optimal transport routes to improve distribution efficiency and optimize asset use.

With visualization spanning the complete lifecycle process from production to transportation, people and materials can now communicate much more efficiently. Automation has reduced costs, improved data precision, and promoted cross-departmental and cross-enterprise operations and management. Through the provision of integrated data integration services, customers can receive better and faster smart logistics experiences.

Huawei is a leading global ICT solutions provider and enabler of digital transformation. We work closely with our global partners across the logistics ecosystem to provide cutting-edge digital logistics solutions, intelligent resource planning, and automated goods fulfillment — building ever-more connections.