Alibaba Group Holding (NYSE:BABA) has revealed its New Manufacturing model for the first time with the unveiling of Xunxi Digital Factory.

The Hangzhou-based factory offers SMEs a digitalized end-to-end manufacturing supply chain that allows for customized, demand-driven production.

“This allows traditional manufacturers to improve profitability and reduce inventory levels while still being able to meet these personalization needs,” said Alain Wu, CEO of Xunxi Digital Technology, Alibaba Group.

The introduction of New Manufacturing is another milestone in the implementation of Alibaba’s “Five New” strategy introduced in 2016, and comprises New Retail, New Manufacturing, New Finance, New Technology and New Energy.

Powered by new technologies, the factory is able to produce small-batch orders at reasonable costs, increasing manufacturing efficiency from 25% to an average of 55%.


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