Feihe Dairy and Siemens sign strategic agreement

By Jim Cornall contact

- Last updated on GMT

Feihe Diary plans to first implement the solutions in its plant in Kedong.
Feihe Diary plans to first implement the solutions in its plant in Kedong.

Related tags: Siemens, Dairy

Siemens PLM Software and Heilongjiang Feihe Dairy Co., Ltd. have signed a strategic agreement focusing on the digitalization of Feihe Dairy's research and development, simulation and testing, as well as quality monitoring, supply chain management and production execution.

Siemens said the deal will help Feihe Dairy realize its digitalization strategy and set a benchmark for digital innovation in the Chinese dairy industry.

Feihe Dairy is looking to transform its business model, including the areas of new product research and development, quality control, data transparency, production efficiency, and overseas acquisitions management.

To address these, Feihe Dairy has achieved the process of control from pasture planting, large scale dairy farming, to production and processing, logistics and warehousing, channel management, and after-sales service.

Creating models

According to Siemens, it can further improve the ability of product R&D control, strengthening the construction of enterprise digital capability.

Feihe Dairy signed the deal with Siemens PLM Software for its end-to-end digital innovation strategy, and its ability to integrate multiple aspects and systems to support the transformation to digitalization, including enterprise resource planning, product lifecycle management, manufacturing execution systems and automation.

Siemens said its digital innovation platform creates digital models of products and production operations to manage the complexity and simulate the performance of smart products and smart production operations, helping manage data and processes within the value chain.

The end of paper files

It also helps streamline and digitalize business processes within the group, which can improve efficiency in production chains. With this integrated solution, the manual process and paper files will be replaced by an automated process and digital files, which can enhance efficiency within Feihe Dairy.

Customers can also access the information about products and orders in the process and system so production information can be traceable, which can help drive Feihe Dairy's business model toward make-to-order (MTO) and gain competitive advantages on the market.

Feihe Diary plans to first implement these solutions in its plant in Kedong.

Feng Hailong, CIO of Feihe Dairy Group, said the Kedong facility started cooperating with Siemens PLM Software last year in the deployment of a manufacturing execution system.

"Siemens PLM Software has a forward-looking strategy and global experience that best supports our goals and vision, as well as those of the entire Chinese dairy industry. We trust Siemens PLM Software to help us overcome the challenges in the journey to digital transformation,"​ Feng said.   

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