April 25th witnessed the successful culmination of the fourth China International Software Development Conference CIO Summit Forum at the China National Convention Center. Hosted by the China Software Industry Association (CSIA) and organized by its Chief Information Officer (CIO) Chapter, the forum, themed" Intelligence Empowers Ingenuity, Digitalization Sparks New Strategies", brought together over 200 CIOs, IT leaders, technology enterprise executives, and esteemed specialists and scholars. Attendees engaged in insightful discussions and shared perspectives on digitalization trends, ground breaking innovations, pressing challenges, and evolving transformation needs. A highlight of the event was the highly anticipated unveiling of the "2025 China Enterprise Digital Innovation Scenarios and Solutions List". Lan-you Tech's "Integrated Global KD Kits Supply Chain Solution for the Automotive Industry", lauded for its innovative approach and practical value, has been named among "2025 China Enterprise Digital Innovation Application Solutions".

This rigorous selection process, spanning nearly three months, saw submissions from over 100 enterprises encompassing more than 200 projects. Following multiple rounds of meticulous review and evaluation, only ten exceptional projects were ultimately chosen for this recognition.

China's Automotive Industry Goes Global: From Product Export to Industrial Chain Globalization

In recent years, China's automotive industry has been accelerating its global footprint. In 2024, China's vehicle exports surged past 6.4 million units, marking are markable 23% year-on-year increase and solidifying its position as the world's leading auto exporter for the second consecutive year. However, the traditional model of solely relying on complete vehicle exports is encountering increasing headwinds. Challenges such as high tariff barriers, escalating logistics costs, and sluggish supply chain responsiveness are becoming evermore prominent. Consequently, Chinese automotive enterprises are strategically evolving from simply exporting products to a more comprehensive "industrial chain globalization" strategy. This involves establishing localized production through overseas contract manufacturing or the construction of dedicated overseas plants. Relevant reports indicate that once overseas plant capacity utilization surpasses 60%, gross profit margins can exceed those of domestic sales. Furthermore, achieving an 80% capacity utilization rate leads to substantially higher gross profit margins compared to both domestic sales and complete vehicle exports, underscoring the compelling economic benefits of this approach. The globalization of Chinese automakers' production capacity has become an undeniable trend.

As the core enabler of this industrial chain globalization, the export of Knock-Down(KD) kit – where components are produced domestically and assembled into complete vehicles in the target country – offers a more agile and cost-effective alternative to building entirely new factories. Moreover, it facilitates smoother integration into local markets and enhances brand affinity. Nevertheless, the complexities involved in KD kit exports far surpass those of traditional complete vehicle trade. It demands meticulous end-to-end management, encompassing global order coordination, navigating diverse international tariff policies, fostering seamless cross-organizational collaboration, and ensuring real-time supply chain visibility. This intricate landscape presents a multitude of challenges for the industry.

Supply Chain Discontinuities: Difficulty in accurately managing global KD kit planning and inventory.

Low Delivery Efficiency: Numerous international logistics stages, lengthy lead times, and challenges in information traceability.

High Compliance Risks: Significant variations in multinational tax regulations and data security standards.

Uncontrollable Costs: Redundant processes in packaging, transportation, and settlement, leading to a high proportion of overall costs.

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Lan-you Tech's Integrated Global KD Kits Supply Chain Solution:

Securing the Success of Automotive Overseas Strategies

Drawing upon deep insights into these critical industry challenges, Lan-you Tech has developed the "Integrated Global KD Kits Supply Chain Solution". By establishing a comprehensive KD-OTD (Knockdown-Order To Delivery) System, the solution achieves end-to-end global management from order placement to final delivery. This encompasses KD kit planning, multi-trade business management, KD kit packaging, shipment planning and management, customs affairs management, global transportation tracking and control, container yard management, end-to-end KD kit flow management, fund management and settlement system integration. The solution delivers core capabilities such as intelligent forecasting, full-process visualized monitoring, multi-level inventory optimization, and anomaly early warning systems. It effectively addresses the diverse KD kit supply chain management needs of automotive enterprises during their global multi-site and multi-trade expansion phases.

This innovative solution caters to a variety of KD business models, including Complete Knock-Down (LOT), Assembly Knock-Down (LOT), and individual Parts (PARTS).Designed with global scalability in mind, it supports multiple organizations, trade methods, languages, currencies, and tax systems, empowering OEMs to manage million-level KD kit export volumes. Achieving an online tracking rate of over 90% for KD kit, the solution provides robust support for OEMs' international KD kit supply chain management.

"Lan-you" Capabilities

?? End-to-End Order Collaboration: Enables fully online management of target market orders from demand to delivery. Through "unique LOT ID" control across the entire supply chain, it seamlessly connects data from orders, contracts, LOTs, smallest packaging units, standard boxes, containers, customs declarations, and bills of lading, meeting collaborative requirements for customs and quality traceability.

?? Enhanced Cross-Border Collaboration Efficiency: Addresses data silos across multiple stages and discrepancies in languages, currencies, and customs regulations. The integrated platform facilitates full-process data collaboration and intelligent rule adaptation, enabling collaborative management across over 80 countries.

?? Effective Supply Chain Cost Control: Provides granular management of sales orders, cost breakdown and reverse calculation from complete vehicles to parts, preferential calculation methods, packaging, customs fees, port charges, international transportation costs, and insurance expenses. Through intelligent cost allocation, horizontal and vertical comparisons, and TOP optimization measures, it achieves a comprehensive cost reduction of 15%-20% in practical applications.

?? Timely Response and Traceability: Establishes an end-to-end visualized monitoring and early warning system, improving problem localization efficiency by 90% and resolving the bottleneck of inefficient anomaly handling, thereby supporting agile decision-making.

The successful inclusion of this innovative solution is not only a strong endorsement of Lan-you Tech's innovation prowess but also provides valuable practical experience in transformation towards digital intelligence for the automotive industry's global expansion. Looking ahead, as the globalization of the automotive industry deepens, supply chain innovation driven by technologies such as big data and artificial intelligence will continue to unlock new efficiencies. This will empower Chinese automotive enterprises to transition from "scale expansion" to "value cultivation" in the global market, ushering in a new win-win era where "Intelligent Manufacturing in China" and the global automotive industrial chain thrive together!