Schneider Electric Focuses on Resilient Supply Chain Strategy Driven by Digitalization and Localizat
Time:2026-06-24 Browse: 0
During the 4th China International Supply Chain Expo, Yin Zheng, Executive Vice President of Schneider Electric and President of China & East Asia, shared insights in an interview with Securities Daily on how the company is building a highly resilient global supply chain system.
He emphasized that in today’s increasingly uncertain global environment, supply chain resilience—defined by resistance to disruption, rapid recovery capability, and flexible adaptability—has become a top priority for industrial development worldwide.
According to Yin Zheng, achieving this resilience requires a “dual-engine” approach combining strategic global layout and technological innovation, particularly in digital transformation and localized operations.
China-Centered Strategy and Multi-Hub Global Layout
Schneider Electric has long adopted a “multi-center” global strategy, establishing regional hubs across major global markets to enable shorter supply chains and faster response capabilities.
Yin Zheng noted that China remains a core pillar of the company’s global operations. Over the past 39 years, Schneider Electric has built:
5 major R&D centers
AI innovation laboratories
30 manufacturing and logistics facilities
This integrated “R&D + manufacturing + sales” ecosystem has significantly strengthened localization capabilities.
Today, China is one of Schneider Electric’s most important global supply chain bases and one of its four major global R&D hubs. The company’s local procurement rate in China has exceeded 90%, reflecting deep supply chain localization.
Strengthening Supply Chain Collaboration and Sustainability
Schneider Electric continues to enhance collaboration with its ecosystem of more than 1,600 suppliers, improving transparency and efficiency across the industrial chain.
A key initiative is its supplier decarbonization program, launched in 2021. By 2025, the program has helped the top 1,000 global suppliers (including over 270 Chinese suppliers) achieve an average 56% reduction in operational carbon emissions.
This initiative reflects the company’s broader commitment to integrating sustainability into supply chain management and promoting low-carbon industrial transformation.
AI and Smart Manufacturing Driving Efficiency Gains
Artificial intelligence is playing an increasingly critical role in optimizing industrial supply chains.
Schneider Electric’s Shanghai Putuo “end-to-end Lighthouse Factory” integrates AI, 5G, and AR technologies across the entire production process, resulting in:
82% increase in per-capita productivity
67% reduction in order delivery time
These improvements demonstrate the tangible impact of digital transformation in real-world manufacturing environments.
Yin Zheng highlighted that digital technologies are helping eliminate bottlenecks in industrial chains and redefine supply chain efficiency in the AI era.
Expanding China-Based Advanced Manufacturing Capabilities
In China, Schneider Electric has further strengthened its localized advanced manufacturing footprint, including:
22 zero-carbon factories
16 national-level green factories
3 Lighthouse factories
These facilities form an end-to-end green manufacturing system aligned with China’s push for high-quality industrial development and new productive forces.
The company also emphasizes that its localized “short-chain” manufacturing model not only supports domestic demand but also enables the export of mature solutions to global markets.
Supporting Chinese Enterprises in Global Expansion
As global supply chains continue to restructure, Chinese enterprises are accelerating their international expansion, increasing demand for cross-border industrial cooperation.
Yin Zheng stated that multinational companies like Schneider Electric can serve as key bridges for Chinese firms going global, leveraging:
Operations in over 100 countries
Decades of international compliance experience
Expertise in carbon management and risk control
Through these capabilities, Schneider Electric provides end-to-end support for companies expanding overseas.
Global Industrial Collaboration and Market Expansion
Schneider Electric is actively cooperating with major Chinese enterprises to expand global presence:
Partnering with China Energy Engineering Group and China National Machinery Industry Corporation to explore infrastructure projects in the Middle East and Southeast Asia
Collaborating with companies such as CATL and Star Charge to export energy storage and EV charging technologies to Europe
These partnerships highlight growing cross-border industrial synergy in clean energy and infrastructure development.
Conclusion
Schneider Electric’s “dual-engine” strategy—combining digital innovation and localized manufacturing—demonstrates how global industrial companies are reshaping supply chain resilience.
With strong investments in AI, sustainability, and regional integration, the company continues to position itself as a key enabler of both global supply chain stability and Chinese enterprise internationalization.
