Issue link: https://read.dmtmag.com/i/566084
tobaccoasia 75 (STMA) – the regulator of China's tobacco indus- try – raised demand for the tobacco industry, say- ing, "We need to take the lead in exploring internet plus. Specifically, we need to explore applications of big data to innovate management under the sys- tem of state tobacco monopoly, under the premise of adherence to the system; explore the application of the Alipay online payment system to innovate the process of account settlement; and explore op- eration of the internet of things, to innovate modes of international e-commerce." Internet Plus Tobacco Industry Many tobacco manufacturers are aware of the great significance of internet plus to promote both manufacturing and marketing. The provincial-lev- el corporations across the country have not only equipped production lines with data collection and processing systems, but have also developed ap- plication software to be used for marketing. While strengthening the marketing of brands, they have focused on collecting and analyzing information and data. Nanning Cigarette Factory of China Tobacco Guangxi Regional Industrial Co., Ltd. managed to apply the policy of internet thinking in equipment management, effectively raising the efficiency of management of spare parts inventories. Internet plus spare parts management first of all means application of the 2D bar code technology in digital manage- ment of spare parts. For example, the factory com- pleted the process of creating files of 2D bar codes for more than 17,000 types of equipment in 30 major categories on 235 storage racks in its spare parts warehouse. As a result, merely by scanning the bar codes with their mobile phones, workshop repairmen rapidly position the relevant racks for spare parts and inquire about the status of spare parts inventories, the status of inventories in other warehouses, and applications for planned recep- tion of spare parts. They can rapidly check records of spare parts supply plans and files of warehouse entry-exit. Moreover, through terminals, managers can become aware of the average monthly use of spare parts by workshops, control the period of their circulation, and process applications for ad- ditional supply of spare parts online in a timely manner. This internet technology can also be used to in- quire about spare parts inventories at any time and in any place. No matter whether they are at the fac- tory of if they are out on a business trip, workers can check spare parts inventories online, and can gener- ate applications online for taking delivery of parts. When they arrive at the spare parts warehouse, they will be able to take delivery of the parts as scheduled. By doing so, they can significantly reduce wait- ing lag. Moreover, the technology implements time- ly notice of arrival of supplies of spare parts. Once a shipment of parts arrives at the warehouse, a notice can be issued through the WeChat messaging and calling app to the spare parts planning staff, so that they could pick it up quickly. As a result of applying the principles of 2D bar codes at Nanning, the rate of capital turnover for spare parts has reached a high of 128.46%, up 6.99% from 121.47% in 2014. Another manufacturer, Shanghai Tobacco Group (STG), started studying internet plus and has begun to focus on results that it delivers across the tobacco industry. Presently, STG is actively devel- oping an internet plus process reengineering plus cost reduc- tion and efficiency increase model, to further promote its development of technological logistics, human- centered logistics, and lean logistics. Under the in- ternet plus concept, the company actively promotes application of the IoT technology. Using mobile internet technology, the company has managed to solve the problem of information-isolated islands, steadily promoted the process of smart storage and step up the development of technological logistics. Through process reengineering, the company ac- tively works in the area of redistribution of human resources. What's more, STG adopted the idea of lean thinking, designed its management and control processes around it, and strengthened operation of logistics to lower the cost of operations, raise effi- ciency, promote efficacy, and realize development of lean logistics. Internet Plus Tobacco Trade There are many tobacco industry commercial en- terprises across China that have also started their process of studying the model of internet plus tobacco operation and scenarios of its application. Some commercial enterprises have even put their opera- tion model into practical application. Zhejiang Provincial Tobacco Company (ZPTC), which doubles as Zhejiang Provincial To- bacco Monopoly Administration, has made it clear The cigarette manufacturing workshop of one of Chinese cigarette companies