SANGO TOOLS: THE POWER OF BELIEVING

I still remember when I joined Shangao China in January, I frequently heard the prediction that "2019 will be the most difficult year", and I was skeptical. After all, for a striver, every step is not easy. In December, various summaries and sales figures were presented on the table. Seeing that Shangao China has achieved great results in all aspects, I must say: I believe in the power of China and the power of Shangao.

In 2019, Shangao China continued to maintain its momentum of significant sales growth in key areas - double-digit growth in the aerospace field and more than 30% growth in the medical industry.

"The greatest danger in turbulent times is not the turbulence itself, but the use of past logic to do things" (Peter Drucker). We "must not only meet customer needs, but also create customer needs." The SECO Consultancy and Machining Improvement Program (MIP) launched this spring are our active explorations. SECO's goal is to help customers improve their production efficiency. We identify production waste and quantify improvement potential for customers. More importantly, SECO experts develop solutions and work with users to effectively implement improvements to achieve true maintenance. This is a spiral rise of multi-party collaboration, tools + manufacturing engineering + training + production consulting. "SECO Consultancy" is an independent brand, neutral and strategic new business, and is an important measure for SECO to help companies meet the challenges of the new era. This year, we cooperated with an engine manufacturing company of China Aero Engine Corporation to provide tool solutions and technical services for the efficient processing of difficult-to-process materials, and signed a relevant consulting service contract. After on-site trial cutting, the set goal of 30% efficiency improvement was exceeded in one fell swoop, and some processes even achieved 300% efficiency improvement, which was fully recognized by customers. Customers hope to further promote it to other parts. Numbers are objective and we must believe in the power of the market.

In 2019, we continued to hone the penetration of technology. Whether it is the double-sided Quick Leopard 14-face milling cutter equipped with eight double-sided, multi-edge inserts to maximize production and reduce single-edge costs; or the advantageous combination of the JC899 finishing tool and the JC898 roughing tool that increases the processing efficiency of the traditional drill/reamer combination by 300%; the new generation of Duratomic® TM material upgraded to meet the challenges of turning stainless steel, or the award-winning Jetstream Tooling® internally cooled turning tool bar clamp based on 3D printing... all witness the acceleration of Shan Gao's innovation. And the positive feedback from customers: the T4 series tool products grew by more than 138% throughout the year; the Jabro solid hard dragon for the aerospace field grew by more than 20%... It gives us reason to believe in the power of technology.

Entering the digital age, I believe China will be at the forefront of the times. From my observation, most of our customers are already accustomed to completing their daily lives online, and having a digital habit as a foundation already gives them an advantage. Moreover, from the encouragement and support of policies to the enthusiasm and actions of corporate decision makers, I can see that there is a real embrace of digital change here. But digitalization makes all variables more complicated and makes everything faster, as the well-known scholar Professor Chen Chunhua pointed out: "The biggest change between the industrial age and the digital age is actually the change in the underlying logic." So what we have to do is to help customers discover their needs and re-stimulate new market space.

In March, the STEP Master Class training course of Shan Gao Tools entered China for the first time. Breaking through the knowledge of tools and processes, many senior experts from the headquarters analyzed the NEXT STEP production model in detail for many senior managers of machining production from the perspective of concept. With experience and knowledge covering five fields including leadership model, reducing resource waste and improving speed, production economy & output rate, processing technology, and material science & technology, users are helped to form advanced concepts to cope with the trend of "more varieties and less batches" from the top-level design. "The boundaries of front-line employees are actually the boundaries of the organization (Chen Chunhua)", Shan Gao STEP training, which celebrated its tenth anniversary in 2019, is the best proof of this. With rich course settings and experience sharing that fits the needs, users have benefited a lot, and STEP training is also thriving with the support of more and more users.

Shan Gao's digitalization process is accelerating. The group has spared no effort to expand online sales channels. In 2019, Shan Gao's online store orders achieved a growth rate of over 30%. The new flexible and economical loT solution will soon enter the Chinese market. It can quickly obtain product information, compatibility checks, tool usage, etc. with a reading pen to achieve intelligent processing. We will continue to assist users in the digitalization process of the entire chain, and help users realize automated document processes through Shan Gao's electronic data interchange (EDI) solution. From purchase orders, invoices, payments, to shipping notices and other various documents, they can all be quickly transmitted online, while increasing the speed of file creation and processing by 61%, reducing transaction error rates by 30%-40%, and meeting users' urgent needs for automated and digital production. I believe that in 2020, the proportion of customers using digital applications will increase significantly, and I believe in the power of change.

Apple founder Steve Jobs said: "Life is an imperfect art; design is the art of making life perfect." It is the iPhone that defines how to make our life, work, communication and entertainment easier and better with the help of a product. "The essence of business is not to sell goods, but to provide life solutions. If you can make life better through business, the market must need you." I believe in the power of beauty. I agree with this. The same is true in the metal processing field where we are. We are part of the manufacturing of automobiles, aircraft, and electricity. Transportation and energy are the foundation of social development. Medical implants help people have a better life. Our solutions ensure their high-precision processing and high-quality output. We use automation, digitalization, collaboration and sustainable development to help the manufacturing industry enter the next era. Making processing simple and making the work of manufacturers easy is our value to customers.

2019 was indeed an extraordinary year, but 2020 is even more exciting. In the digital age, time is the present. Only by doing well in every present moment can we face the future. I hope you, like me, believe in the power of belief!

Figure 1: Mr. Jean-François Martins, Managing Director of SANGO Tools Greater China