Rong Bin Xu, General Manager of Bearing Division at XCC Group in China explains their measures to ensure the production continuity since early February 2020.
Please tell us about the initiatives taken by your company for business continuity while ensuring employees well-being during these challenging times?
As one of the leading manufacturing enterprises in China, Government approved XCC Group to resume operations in early February. We took appropriate actions to ensure that all of our employees would have a safe working environment to protect them from contracting the virus and preventing the spread of the virus. These precautions included requiring all our employees to wear masks, maintaining a 1.5 meters distance from other employees, measuring the body temperature of every employee two times a day, sterilizing all offices and production areas every four hours and establishing scheduled teleconference calls with our suppliers and our customers to discuss any deviations with the virus.
What steps have you taken to ensure Work from Home? How are you ensuring collaboration amongst internal teams?
95% of XCC Group office employees work from home utilizing OA Systems. With OA Systems, we can discuss opened topics by text message, set up team video conferences and communicate via email.
What initiatives have you taken for a smooth customer experience?
We have replaced person to person meetings with more communications via email, phone calls, video conferencing and Wechat. Our increased use of these modes of communication have helped us to ensure our promised lead times, reduction in product rework and reduction in product expedites. Because the public logistic system has been dramatically reduced, we have increased our fleet of company vehicles to transport raw material, and finished products.
What would you define as key lessons from this crisis?
Over the years, XCC Group has strived to reduce the outsourcing of our manufacturing processes. During this crisis we learned that more in-house operations can be a tremendous benefit. We did not have to rely on other suppliers and we could react quickly during this time of uncertainty. This crisis confirmed our commitment to having more in-house manufacturing operations and it has pushed us to continue to reduce outsourcing so that we can provide our customers with better service.
In your view, what will be the impact of the pandemic on the overall business scenario and especially on your segment? What is your strategy to tackle the economic slowdown?
This pandemic will cause many companies that were not finically stable to fail. We believe that customers will be more proactive in researching and establishing relationships with companies that are manufacturing chain and financially strong. Customers will also be more focused on working with supplier that are local to reduce lead times, risk and provide better service. This is why XCC Group is actively establishing warehouses, offices and manufacturing facilities in key locations worldwide.