SDLG will use Alibaba’s business intelligence expertise to modernise production, increasing efficiency and flexibility in the process.

SDLG and Alibaba Group Holdings (Alibaba), which is headquartered in Hangzhou, China, have announced a new partnership aimed at improving and enhancing intelligent manufacturing techniques at SDLG’s assembly plants in China.

SDLG, which is majority-owned by Volvo Construction Equipment, is a construction equipment manufacturer based in Linyi, China, that produces thousands of machines each year. By partnering with Alibaba, a global leader in B2B e-commerce and business intelligence technologies, the company hopes to use such innovations as artificial intelligence, machine-to-machine communication and intelligent devices to modernise its manufacturing. The goal is to boost productivity and reduce waste in its factories, while still delivering high-quality, reliable products to its customers.

Immediately, SDLG plans to begin using Alibaba’s cloud technology to improve procurement and supply chain sourcing, for example, which should help the company become more flexible in its production, as it can better shift among supply partners to meet changing market dynamics. Also, it will use Alibaba’s business intelligence tools to analyse the data of its current operations, which will help the company make more informed business decisions in the future.

“SDLG has been steadily investing in its production processes for years, and this partnership with Alibaba will take these efforts to a new level,” said Wen Degang, general manager of SDLG. “With the deep insight and analytics that Alibaba’s business intelligence expertise can bring, SDLG can further take the lead in such efforts as supply-chain sourcing, lean production and digital manufacturing to increase flexibility, operational efficiency and more.”