SHANGHAI, September 16, 2021 / PRNewswire / – New Core Tech has announced that it has just completed its C-round fundraiser valued at $ 35 million, led by XiaoMi, Shunwei Capital and followed by Northern Light Venture Capital and Cowin Capital etc. Binjiang Tao, CEO of New Core Tech, reveals that the fund will be widely used for partnership and channel expansion, talent acquisition, and more. second round of funding since this year for New Core Tech. At the beginning of February of this year, New Core Tech has just completed its B + financing round led by IDG Capital and Cowin Capital.
New Core Tech aims to provide SaaS and aPaaS especially for the discrete manufacturing industry, covering Cloud MES (Manufacturing Execution System), Cloud ERP (Enterprise Resource Planning), TPM (Total Productive Maintenance) and TQM (Total Quality Management) ) four main modules. Its smart factory solution has successfully helped thousands of factories to China accomplish digital transformation through intelligent decision making, manufacturing data collection and data analysis. Up to now, its products have been widely applied in the auto parts and high-tech equipment manufacturing industry, with customers such as ENN Group, ZhongZhou Group, etc.
The MES system provided by New Core Tech is essentially a complete management system at the service of operational layer of workshops within factories. By collecting data from manufacturing machines, such as CNC, New Core Tech is able to provide factories with a suite of resource allocation, detailed planning, production unit allocation, document control, data collection, workforce management, quality management, process management, maintenance management. , product monitoring and genealogy and performance analysis. Although some company-sized factories have already adopted various types of digital management systems, MES should be at the heart of digital transformation as it speeds up the workflow in the shop floor. In early 2016, the Chinese government released an official document to point out that it is essential for discrete and process manufacturing to use the MES system.
MES is reported to represent 29% of the total industrial software market in China 2020. At the start of this year, nearly ten MES companies closed fundraising in the market, including New Core Tech. In addition, as the market develops, most of the SMB factories gradually get rid of the phenomenon of “pushing missing components, pleading for planning, hand writing transcription”, which has greatly increased the demand for MES at national level.
At the beginning of February this year, industrial software was selected as the main R&D objective by the government, indicating that it is the highest priority strategic investment in China. In the meantime, the Covid-19 situation is accelerating the process of digital transformation of the national manufacturing industry, especially small and medium-sized businesses. The cunning and degree of acceptance of MES adoption has been greatly improved, they expect to increase the productivity of manufacturing using MES system.
According to the report titled “2020 Smart Factory and MES Application” by Dr. Huang Pei, the current national MES is still far from mature. Most manufacturing companies are expanding their in-house MES or hiring an outsourcing team to co-develop, resulting in significant sunk costs.
New Core Tech CEO Binjiang Tao told 36Kr that it takes a long journey for an MES to actually be implemented in the factory, and most of the time many end up with nothing.
New Core Tech’s MES uses a SaaS and aPaaS model, not only serving top customers through personalized service, but also serving long-tail customers through more than 60 module selections. Customers can choose the corresponding modules according to their actual needs, which perfectly solves the problem of the long process of MES implementation.
The next phase of the evolution MES, according to Binjiang Tao, will be the ecosystem that supports end-to-end supply chain planning and execution functions. New Core Tech is committed to partnering with other SaaS to co-build the digital ecosystem via an open API. It is currently integrated and compatible with systems such as CRM, OA, ERP, PLM, PDM, MDC, etc. in order to provide a complete digital solution covering different departments inside and outside factories.
New Core Tech’s know-how in the auto parts and high-tech equipment manufacturing industry has made it user-friendly for industry customers. In fact, professionalism in a specific vertical industry is the key strategy of most MES players at the national level, such as Morewis focusing on electronic packaging, PCBA and BlackLake focusing on the food industry, medical, etc.
It is commonly believed that MES is difficult to copy, the industry know-how of a specific vertical sector is really important. Ultimately, it will be difficult to provide a standardized MES product in different industries, especially for national MES providers. Focusing on a specific vertical is the key to building “the gap”.
SOURCE New core technology