Since the final customer is the OEM, the purchase requirements of all supporting buyers come from the OEM's vehicle products, so the purchase variety is relatively fixed, and the quantity will vary greatly with the market. The cooperative review cycle is long, and the batch production cycle is long. It is a long process to inspect potential suppliers who are actually mass-produced. (See the picture below) Even if the cooperation is successful, we need to actively cooperate with customers and make corresponding adjustments in the entire production cycle (usually about 3 years), quality improvement, and annual price reductions.
Take the example of becoming a supplier to a mainframe factory.
First, the supplier’s qualification requirements must be met.
1.Must have ISO19001 and TS 16949 certification
2. It is best to have ISO14000 certification.
three. Have good English communication skills.
4. Good OE matching experience, with supply experience from large OEMs or first-class brand suppliers (Delphi, Bosch, Mainland China, Zef, etc.).
The process of contact and cooperation can be divided into three stages.
The initial stage of a new supplier (quality + procurement)
Information collection RFI confidentiality and quality assurance
Project inquiry technical school communication
Field inspection, factory inspection, preliminary negotiation, business system communication (Quality Department)
Qualification review new supplier system review
Purchase decision price negotiation
How to draft
New supplier mid-stage
Sample order sample mold order purchase
The quality of detailed communication in model development
Mold development sample production and process improvement supplier
Internal audit of the quality of excellent sampling documents
Sample inspection factory
Sample confirmation PSW (Parts Submission Guarantee) factory
New supplier later
Supplier of small batch production equipment (stability, productivity)
Quality assessment quality stable supplier
Quality control quality control points, process, visual management
Production quality management, supplier performance management (QCIDM) procurement
Auto parts companies passed the customs all the way, successfully supplying batches. The following figure briefly introduces the procurement and supply mode of my country's auto parts. We can feel the position of auto parts companies in the entire industry chain.
This procurement model has two characteristics:
1. Core component companies and backbone companies generally have technology development and design capabilities. Organize mass production of products according to the technical parameters and use requirements provided by the models produced and developed by the OEM. Formed a vertical parts procurement development model with automobile OEMs as the core and surrounded by parts suppliers. As a supplier of peripheral parts, it cannot participate in the early design and development of products, the information cannot be transmitted in time, and the company's response to the market is slow, resulting in the separation of production and market demand. In order to adapt to changes in demand caused by poor information, we have to increase inventory, leading to excessive use of liquidity.
Secondly, in this "dependence" mode with automobile matching as the main body, automobile OEMs focus on their own interests, ignoring the actual situation and interests of cooperative spare parts enterprises, and exchange large amounts of stocks of cooperative enterprises. The company has "zero inventory" for it, and put the pressure of price war on the parts and components companies. In the negative environment of the industry, for cooperating auto parts companies, due to the decline in auto parts sales to end customers, it has a serious impact on purchaser orders in the supporting market. Of course, the purchase volume has also been drastically reduced. d. Auto parts companies will first bear the risk of industry turmoil.
In 2019, automobile production and sales continued to decline. Now is a difficult time for the survival of the auto parts industry chain, but who has a way out? Knowing that there are tigers on the mountain, they prefer to travel on Tiger Mountain. The picture below is a photo of all the people in the auto industry. Behind this mountain, you are a hero.
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