Schneider Electric, the leader in the digital transformation of energy management and automation, announced that the company’s Smart Factory in Hyderabad in India has been recognised as an Advanced Lighthouse. The Hyderabad factory is the fifth Schneider Electric factory to receive this distinction to date, joining Le Vaudreuil in France, Wuxi in China, Lexington in Kentucky and Batam in Indonesia.
The company also added that its Le Vaudreuil factory in France, which was earlier recognised as Advanced Lighthouse in 2018, has now been recognised by the World Economic Forum as a Sustainability Lighthouse. This is one of only six worldwide and the second for Schneider Electric, with the Lexington, Kentucky plant receiving the same status in September last year.
The Forum’s Sustainability Lighthouses showcase and recognise global best practices of 4IR technologies in manufacturing to demonstrate how companies can unlock new levels of sustainability in their operations and win-win solutions: greater operational competitiveness while simultaneously delivering greater environmental stewardship, for a cleaner and more sustainable future.
The Le Vaudreuil factory is a compelling case in the power of data to drive greater sustainability outcomes. The plant implemented IIoT sensors connected to digital platforms, and the visibility of this new data enabled optimised energy management to reduce power use by 25%, cut material waste by 17%, and lowered CO2 emissions by 25%. The smart factory is equipped with a zero-reject water recycling station connected to cloud analytics monitored by AI that predicts and processes flows, leading to a 64% reduction in water use.
Manufacturing the mission-critical products, the Hyderabad smart factory has leveraged Schneider Electric’s Fourth Industrial Revolution (4IR) based EcoStruxure Solutions to meet the company’s ever changing customer needs, supporting business growth of 54%. Enabled by AI deep learning, IIOT infrastructure and both predictive and prescriptive analytics have improved manufacturing defects rates, non-quality cost and customer lead times, improvements in efficiency and free-up of energy for people.
Mourad Tamoud, Schneider Electric’s executive vice president of global supply chain said, “This latest recognition from the World Economic Forum for Le Vaudreuil and Hyderabad plants provides compelling cases for rapid and extensive deployment of 4IR technologies — that of significant benefits for manufacturers including sustainability, agility, and resilience.”
The Hyderabad plant leverages IIOT Infrastructure, predictive and prescriptive analytics, AI deep learning, and 4IR integrated technologies to meet changing customer demands and a 54% increase in business growth. Manufacturing efficiency has been improved by 9%, while field failure reduced by 48% and lead time by 67%.
These latest examples demonstrate Schneider’s commitment to its purpose: “We are always looking to improve and enhance our supply chain for our customers and society as a trusted partner for digitalisation and sustainability,” Tamoud said. “And we never forget that it’s our people who are making it happen, which is why we invest in developing their digital skills and expertise as part of our people vision and investment in our workforce.”
“We are elated that our Hyderabad Smart Factory has been recognised as an Advanced Lighthouse by the World Economic Forum,” said Javed Ahmad, SVP – Global Supply Chain – India, Middle East, Africa, East Asia, Japan, Pacific & South America, Schneider Electric. “This is a first for us in India and among the only three organisations in the country to have received this recognition. We intend to continue integrating our technologically enabled solutions in transforming our smart factories across the rest of our locations. By investing in the latest technology, we strive to leverage innovation for better customer outcomes and forge a sustainable future. Our consistent efforts have been instrumental in revolutionising and bolstering our supply chain for businesses and our customers, and we are proud to be a trusted partner in empowering them to harness greater digitalisation and sustainability.”
In collaboration with McKinsey & Company, the World Economic Forum began the Global Lighthouse Network initiative in 2018 to recognise manufacturers’ leading growth of the Fourth Industrial Revolution. The Hyderabad plant joins a list of more than 100 sites in the Global Lighthouse Network that create innovation in business models and increased customer value through 4IR technologies. These companies demonstrate how digital operations create productivity and efficiency gains to enable sustainable growth in the face of pervasive disruptions and challenges.
The STRIVE Program
The Hyderabad and Le Vaudreuil factories are part of Schneider Electric’s global smart factory and distribution centre initiative encompassing nearly 300 factories and logistics centres in more than 40 countries. This initiative – part of the company’s STRIVE program – aims to address the fundamental challenge of sustainability while increasing profitability and efficiency.
STRIVE (Sustainable, Trusted, Resilient, Intelligent, Velocity and Efficiency) is the next evolution of Schneider Electric’s supply chain transformation to be the most agile, innovative, planet and customer-centric supply chain.
Sustainable – Schneider Electric is implementing projects to build carbon-neutral and circular supply chains whilst preserving local biodiversity.
Trusted & Resilient – Schneider Electric strengthens its resilience through multi-sourcing and ensures there is no single point of failure in its production lines. Leveraging technology, we can create a highly personalised experience for our customers and ensure superior quality using and end-to-end view of its operations.
Intelligent – Leveraging digital, Schneider Electric predicts, prevents, and automates for a highly flexible remotely orchestrated supply chain.
Velocity & Efficiency – Schneider Electric leverages its strong regional presence, agile mind-set, and supply partners.
STRIVE is part of Schneider Electric’s vision that electrification and digitisation are inextricable tools in the fight against climate change. This vision has led to the company’s recent ranking as #4 in the 2021 Gartner Supply Chain Top 25.