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