How can Chinese auto parts companies become global?

With the intensification of international competition, the global automobile market has formed a new trend of “you have me and I have you”. The international auto giants and Chinese vehicle groups have or are planning to implement a global procurement strategy. Under this background, how can China's auto parts enterprises enter the global procurement system and how to build their own marketing channel network? This is an urgent problem that needs to be explored and solved by Chinese auto parts companies.

In the context of the globalization of automobile production, many auto manufacturers are developing global parts procurement in order to ensure the quality of the entire vehicle and reduce costs. This is only after undergoing a low-level phase in which almost all parts and components were made by the automaker in the initial phase and gradually increasing the proportion of purchased parts, it gradually developed to the current intermediate stage of global procurement. The advantage of global procurement is that OEMs can make full use of competitive advantages in spare parts around the world, obtain the latest market technologies, adapt to exchange rate fluctuations and the batch effects of group procurement, and obtain the best quality, best service and the most reasonable price product. Therefore, the implementation of a global procurement strategy, expanding the outsourcing rate, and reducing the self-control rate in order to achieve the best economic efficiency and the best product quality have become the development trend of the world's auto industry.

At present, many automobile manufacturers in China have announced the implementation of a global procurement strategy. In terms of logistics, most of them implement warehouse management, door-to-door delivery, and timely delivery of this process. In terms of sales and services, brand sales, single-level pull sales, and so on, focus on value-added links to the international level in order to enhance overall competitiveness.

Chinese suppliers face many difficulties and challenges. Such as culture, language, logistics, translation of technical documents, supply capacity, communication, time difference, legal, whether it can conduct business operations in the same system, customer operation procedures, quality certification system, quality planning and control, preparation of suppliers The global political environment, economic environment, and so on need to be overcome and resolved through communication and integration.

For Chinese auto parts to be exported, companies must understand the needs of their customers. So, what are the customer's needs? (1) High-quality supply + competitive prices; (2) Technology--process--process control--capacity; (3) material properties--testing--reliability (4) Quality process control - no defects. The customer also hopes that the supplier's quality and engineering service personnel can arrive at their headquarters at any time.

For Chinese auto parts to be exported, companies must also understand their customers' purchasing decisions. The customer first sends the inquiry to the supplier, conducts a price negotiation, selects the supplier, drafts the cost target and the potential supply review. After the primary supplier is identified, technical review is conducted, including comprehensive review, molds, manufacturing processes, material testing, prior quality control plans, and production parts approval. After the technical review is qualified, the customer only gives the supplier a 17- to 29-page order.

In order to obtain punctual and qualified parts and components from suppliers, the customer has 63 stages in three stages for the general process of supplier development. The first stage is supplier selection and certification, including target products, primary selection, evaluation, preliminary preparation and quotation. Recognition and so on. The second stage is the preparation of suppliers for production, including technical documents, change control, samples, early production control, product certification, and production by beats.

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