Parts and components into the vehicle procurement system

It is the dream of many domestic parts and components companies to enter into the procurement system of the entire vehicle company. To a large extent, it is also the key to determining the survival of parts and components companies. Some companies report that when the manufacturing capacity of a company has reached a certain level, it is still difficult to get into the vehicle procurement chain of the entire vehicle. In the end, what does the entire vehicle company value when choosing a component supplier? What is the secret of successfully establishing a solid partnership with a vehicle company? Around these issues, our reporter recently interviewed Xiao Gangzhong, deputy director of the procurement center of Jiangling Motors Co., Ltd. He has extensive experience in the procurement of spare parts. During the interview, he analyzed the purchasing rules of multinational companies and proposed suggestions for zero-sum cooperation.

“The rapid development of the automotive industry is an opportunity for domestic parts and components companies, but the greater the opportunities, the greater the pressure. Since the financial crisis, raw material prices, RMB appreciation, user demand for product quality has continued to increase, and there are now cars. The overall advantages of spare parts procurement abroad are greater than domestic purchases. Boldly predict that in the next 3 to 5 years, the domestic parts and components industry will also face a major reshuffle, and 30% to 50% of companies may not be able to stay." Xiao Gangzhong, deputy director of the procurement center of Jiangling Motors Co., Ltd., told reporters.

It is not easy for vehicle companies to purchase rules

When vehicle companies purchase parts and components, they favor foreign brands. Some people complained that domestic parts and components companies do not have the opportunity to compete fairly. As everyone knows, there are strict rules for the purchase of vehicle companies.

According to Xiao Gangzhong, any new model, after being listed on other markets, is usually given priority to using its own original spare parts, unless there is a big quality problem, it will not be replaced. The so-called original parts and components are parts that are involved in the vehicle development process at the beginning of vehicle development.

“There are many spare parts for the whole vehicle, and the replacement parts need many verifications and matching verifications of the relevant systems. The cost is very high. The entire vehicle company will try to avoid duplication of verification for cost and quality considerations. One model of a multinational company may be Selling in different markets around the world, but using the same parts suppliers, Ford proposed 'OneFord, OneWorld' to include this meaning."

What kind of parts and components companies can enter the original supply system? If it is a foreign first-listed, domestic after-market models, from the production companies first select suppliers abroad, the domestic market is often referred to the previous configuration.

If the models are listed at the same time in Europe and China, European and Chinese manufacturers will also list the intended suppliers. After a comprehensive analysis of the technical strength and cost of the parts and components companies, the entire vehicle company selects suppliers that meet the requirements of both parties from this list.

Therefore, if a parts and components company wants to enter the original procurement system, it must follow the rhythm of the simultaneous development of the entire vehicle company, but this is exactly what the domestic parts and components companies lack. Xiao Gangzhong cited an example: "For example, a set of original parts and components system is a set of 500 yuan, and domestic companies can provide a set of 450 yuan. The model has a life cycle of 4 years and can sell about 200,000 vehicles. Can save 10 million yuan, but if the re-experiment, verification will cost 8 million yuan, but also the need for human resources investment, and bear the corresponding risks, so even if domestic parts have a cost advantage, vehicle companies are reluctant to choose. ”

Independent design and development is the key

Having the independent R&D capability is the most basic requirement of the entire vehicle company for the parts and components companies. The entire vehicle company hopes that the parts companies will be able to participate in the initial stage of developing new models.

Taking Ford as an example, for the key components, Ford has a booklet containing suppliers that Ford has worked with all models. These suppliers have been confirmed to have independent research and development capabilities. Ford's affiliates need to go directly to the booklet when they need to purchase. If there is no place in the booklet, there is naturally no possibility of early intervention. The procurement of non-core parts does not have to be completely rigid in the contents of the booklet, but it also places great emphasis on the independent research and development capabilities of the parts and components companies.

What kind of R&D ability can really move the vehicle company? In a nutshell: Outperform demand.

Xiao Gangzhong took the crankshaft company to the reporter and made a metaphor: “Before a vehicle company asked for a request, if a crankshaft company can come up with a lightweight crankshaft that can save material and increase its strength, we think it has research and development capabilities. If the entire vehicle company needs specific requirements, this level of research and development is hardly trustworthy and the risk is high."

At present, parts and components companies have flaunted their R&D capabilities. However, another fact is that in recent years, the pace of development of new models has been getting faster and faster, and most domestic parts and components companies have been unable to keep up with the development progress of vehicle companies. Xiao Gangzhong expressed concern about this, and he said: “A lot of the domestic R&D capabilities of domestic parts and components companies actually employ only a few retired experts and highly educated talents, and most of the R&D is still outsourced. About 90% of domestic components companies still stay. In this stage, the domestic parts and components companies are not the idea, not the hardware, not the capital, but the accumulation of experience.The technology itself is the accumulation of experience, and the source defects caused by the design are the most deadly.Success and failure are all experiences The vehicle manufacturers value the cases they have done in the past, but domestic parts companies and auto companies have too little experience in the simultaneous development and must rely on institutions with development experience, such as cooperation with universities or joint ventures with foreign companies. ."

The verification capability of domestic enterprises is still too weak

In addition to R&D capabilities, there is also a lack of verification capabilities for domestic parts and components companies.

Verification usually includes prototype verification and mass production verification. Prototype verification often requires parts companies to verify the entire vehicle through software. For example, designing a crankshaft requires simulation on a computer to see if it can run 100,000 kilometers on the car.

“Such a software simulation verification system is a weak point for Chinese parts and components companies, and few companies have this strength. Many companies still wait for the product to come out and do verification, but this is actually a speedy one. If it fails, all the previous investment If you really make a mistake, you will also delay the development of the entire vehicle company, cause losses to the entire vehicle company, and even the entire vehicle company will claim compensation. Once it is really claimed, it will be very difficult for parts and components companies to establish a foothold in the industry.” Xiao Gangzhong told reporters .