Affection for the Chinese market

The PAC Group is a multinational company in the United States and one of the world's largest management and procurement service providers. The company began its entry into China in 1995, mainly serving and helping domestic companies to do export business. In 2003, it established the Global Purchasing Department in China. When talking to reporters about the issue of China's auto parts exports, the expert president’s attention to the Chinese market was overwhelming. He explained that the company consists of four parts: automotive project management, computer systems, engineering design, and global procurement of parts and components. The automotive project management system not only conveyed the most cutting-edge information for China, but also made substantive work in China and international cooperation. In China, there was no previous system for automobile project management. Cooperation with Germany Volkswagen and U.S. General Motors was completed with the assistance of the PAC Group. With the PAC Group's top management in the international giant car group for many years of valuable experience and accumulated personal connections. The company has helped Chinese companies and some countries such as the United States and Japan to do some projects. Through the operation of these projects, they can raise the level of exports of Chinese companies at a lower level, bring in the most cutting-edge information from the international community, and bring advanced operational procedures. Come in, this has enabled domestic companies to have a rapid increase. At present, the work of PAC Group's Global Purchasing Department in China focuses on enhancing the strength of Chinese companies and helping to solve the problems faced by China's auto parts exports.

Xiong Peilu also introduced: With China's accession to the WTO, the gradual reduction and elimination of trade barriers have led to rapid development of the automotive industry, and parts manufacturing has gradually approached the world level. At this time, the competition space between European and American auto parts and components industries has intensified, prompting major auto companies and large parts and components manufacturers in the world to come to China for low-cost procurement. These world auto giants plan to purchase a total of 50 billion U.S. dollars in low-cost countries by 2007, and 70% of them are expected to come from China.

Suppliers are unclear about international purchasing requirements

With regard to the rules of the game for global sourcing, international buyers classify Chinese suppliers into three categories. The first-tier suppliers have global supply capabilities, resources, R&D and technical capabilities, and have passed international quality system certification. China's 187 joint ventures and foreign-funded enterprises are tier one suppliers. The second and third-tier suppliers have quality capabilities, competitive costs and capacity, and show their export potential. Most of the suppliers in China are second- and third-tier suppliers. Compared with the same-level suppliers, most of the second- and third-tier suppliers are not aware of the requirements of international buyers.

Internationally, it has hundreds of years of operational experience in procurement and forms a tight set of international procurement procedures. These procedures include: pre-assessment of potential suppliers, product inquiries, technical reviews, formal assessments of suppliers, product set-points, capacity audits and formal procurement. In addition, the customer also hopes that the supplier's quality and engineering service personnel can arrive at their headquarters anytime and anywhere.

The PAC Group has summarized the international procurement process into 63 steps in three phases: The first phase is the selection and certification of suppliers, including target products, primary elections, assessments, preliminary preparations and national approvals. The second stage is the supplier's production phase, including technical documents, change control, samples, early production control, product certification, and production by beat. The third stage is production and continuous improvement, including quality, logistics and continuous improvement. If you do not strictly follow the above steps to develop, suppliers will have great risks in the procurement, such as when the supply is not timely, resulting in production pauses.

China's auto parts exports have huge business opportunities, but they must meet the OEM requirements. In other words, business opportunities only belong to companies that provide customers with "punctual, qualified parts and components."

China parts are facing challenges

Compared with foreign countries, the domestic parts and components companies have repeated construction, small scale, and fragmentation, and they are unable to carry out transformation and transformation to enhance their own production capacity; therefore, looking across the country, we have a situation in which the total production capacity is very large and the individual production capacity is small. , And there is insufficient market competition, it is difficult to unite and make full use of the existing stock of assets and restrict the exertion of production capacity. These situations are very unfavorable for entering the international market.

The related basic industries have not developed synchronously with the automobile and parts industries. For example, iron and steel, chemical industry, metallurgy, textiles, accumulative processing, and other related industries lag behind the development of the automobile and parts industries, and follow the old tradition of implementing domestic, industry, and corporate standards. , unable to meet international standards.

A series of problems such as backward technology, poor R&D capability, and slow product replacement are widespread. Based on the goal of reducing costs and transferring design responsibility, supplier integration, and integrated procurement, international OEMs have gradually moved from existing product procurement to system procurement and then to modular procurement. Therefore, parts suppliers are required to have synchronous technology development capabilities and systems. Integrated production capacity, control capability of graded parts. However, at present, most of the domestic parts and components companies are out of map processing and imitation, and they must upgrade their own product development levels as soon as possible.

In addition, culture, language, logistics, translation of technical documents, supply capacity, communication, time difference, legal, whether it can conduct business operations in the same system, customer operating procedures, quality certification system, quality planning and control, preparation of suppliers The global political environment and economic environment need to be overcome and resolved through communication and integration.

In short, China's spare parts production and sales industry is facing a series of problems ranging from development to production, from operations to markets, from sales forms to service frameworks, from the quality of employees to brand awareness, from market reputation to business management, and so on. Competition is More complex and its challenges are even more severe.

President "On Road"

Xiong Peilu believes that while seeing the unfavorable factors of China's auto parts, we must also see the advantages of its industries, such as having a good foundation for the automobile and parts industry, government guidance and encouraging preferential policies for exports; relatively stable exchange rates; Stability and good economic development. Based on these advantages, we should focus on the following aspects:

First, on the macro level, strong and strong alliances form the scale. Global procurement and module supply have become a trend. The existing domestic market structure will be broken. Small-scale enterprises with no development ability will be eliminated. Even companies with a certain scale and good products will have to plan from a strategic perspective. Strengthen product development, reduce product costs, and strengthen the alliance. At the same time, the government uses various preferential methods to foster Chinese enterprises to establish a brand, thus establishing a number of production bases with large scale, high starting point, specialization, high quality and modular supply, laying the foundation for Chinese products to enhance their competitive advantage in the international market.

Second, companies have made clear QSTP to meet international customer requirements. Quality, service, technology, and price are referred to as QSTP. This is the advanced concept of global sourcing today, and it is also an international customer's requirement for auto parts suppliers.

Third, software training and improvement. The government and the Automobile Industry Association have joined forces to strengthen the training of industry personnel in various ways and to train a group of talents who understand international procurement rules and expertise as soon as possible in order to meet the challenges of global procurement.

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