Siemens PLM Software Drives Feihe Dairy In Strategic Business Digitalization Journey

• Feihe Dairy to digitalize their complete value chain with the Siemens PLM Software digital innovation platform
• Digitalization can help Feihe Dairy achieve greater operational efficiency and transparency in the complete production line

Beijing /PRNewswire/ - 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. With Siemens' leading digital innovation platform and industry expertise, this cooperation can help Feihe Dairy to realize its digitalization strategy and set a benchmark for digital innovation in the Chinese dairy industry.

"Siemens PLM Software is a trusted leader in the field of digital manufacturing. In fact, our Kedong factory started cooperating with Siemens PLM Software last year in the deployment of a manufacturing execution system." said Feng Hailong, CIO of Feihe Dairy Group. "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."

Founded in 1962 with its headquarters in Qiqihar, Heilongjiang Province, Feihe Dairy is one of the earliest milk powder producers in China. It created milk powder formula more suitable for Chinese consumers, especially for babies and infants. However, with the decades-long growth of the Chinese market and increased global competition in recent years, Feihe Dairy found itself in need of upgrading from a traditional dairy manufacturer to a modern digital enterprise; a consistent issue across the entire Chinese dairy industry.

Feihe Dairy faces many challenges in looking to transform their 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 whole process of control from pasture planting, large scale dairy farming, to production and processing, logistics and warehousing, channel management, and even after-sales service. It can further improve the ability of product research and development control, strengthening the construction of enterprise digital capability. After careful consideration, Feihe Dairy has selected Siemens PLM Software for its end-to-end digital innovation strategy, and its ability to integrate multiple aspects and systems to fully support the transformation to digitalization, including enterprise resource planning, product lifecycle management, manufacturing execution systems and automation. In addition, the embedded quality (LIMS) and advanced planning and scheduling (APS) functionality of Siemens' offering were also seen as key differentiators.

Siemens' digital innovation platform can create comprehensive and precise digital models of products and production operations as a means to manage the complexity and simulate the performance of smart products and smart production operations, helping manage data and processes within the value chain to maintain a high level of quality. It also helps to 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. Meanwhile, customers can also access the information about products and orders in the process and system so that production information can be truly traceable, which can help drive Feihe Dairy's business model toward make-to-order (MTO) and gain great competitive advantages on the market. Feihe Diary plans to first implement these solutions in its plant in Kedong.

"We are honored to be selected by and work with Feihe Dairy in their digital transformation," said Leo Liang, senior vice president and managing director of Siemens PLM Software for Greater China. "Feihe Dairy is a leading brand in the industry and the nation, and the dairy industry is a key aspect of people's wellness. Siemens PLM Software is committed to help not only Feihe Dairy but the whole Chinese dairy industry to upgrade and transform."

Siemens PLM Software, a business unit of the Siemens Digital Factory Division, is a leading global provider of software solutions to drive the digital transformation of industry, creating new opportunities for manufacturers to realize innovation. With headquarters in Plano, Texas, and over 140,000 customers worldwide, Siemens PLM Software works with companies of all sizes to transform the way ideas come to life, the way products are realized, and the way products and assets in operation are used and understood. For more information on Siemens PLM Software products and services, visit www.siemens.com/plm.

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Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 170 years. The company is active around the globe, focusing on the areas of electrification, automation and digitalization. One of the largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of efficient power generation and power transmission solutions and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry. With its publicly listed subsidiary Siemens Healthineers AG, the company is also a leading provider of medical imaging equipment – such as computed tomography and magnetic resonance imaging systems – and a leader in laboratory diagnostics as well as clinical IT. In fiscal 2018, which ended on September 30, 2018, Siemens generated revenue of €83.0 billion and net income of €6.1 billion. At the end of September 2018, the company had around 379,000 employees worldwide. Further information is available on the Internet at www.siemens.com.

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