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Entering 2006 is the first year for the country to implement the "Eleventh Five-Year Plan". For auto and parts companies, it has entered a new round of competition and development. The author believes that in the new round of competition and the new stage of development, the pressure on the upper reaches, the price increase on the lower reaches, and the severe challenges of multinational companies competing on the same platform are the realities that have to be solved before the domestic auto parts enterprises. The big problem is the “three big mountains†that must be surpassed by parts and components companies. The author believes that the parts and components companies must solve the three major problems and stride across the "three mountains" to take the following measures.
Establish an "integrated development cooperation system." With the further intensification of competition in the automotive market, price cuts are the inevitable result of market competition, and in the coming years I am afraid it will also be an "eternal theme." As a host or an OEM, in order to ensure their own profit margins, they have to lower prices for downstream companies. I am afraid there are also their difficulties. Then, how can auto parts companies evade the risk of "price reduction" and reduce losses? The author believes that auto parts companies should establish a strategic partnership with the host or vehicle manufacturer, implement the "integrated development" strategy of "going hand in hand, cooperate sincerely, seek common development, and achieve win-win" with the host or vehicle manufacturer. Independent innovation and improve core competitiveness. For example, Hunan Jiangbin Machinery (Group) Co., Ltd. is a professional piston company and the only military piston research and development and production base in China. In recent years, Jiangbin Company, as an auto parts company, has always insisted that the demand of the main engine plant is their focus of attention; it provides the host plant with advanced product development support to ensure the continuous upgrading of product quality and the steady increase in production capacity; In order to “surpass user expectationsâ€, we will work with OEMs to solve the gap between reality and expectations, thereby providing market end users with quality products and services. As early as the beginning of Yuchai in 2000, the company established the concept of “product development first, matching and follow-upâ€, and product development has always adhered to the guiding principle of independent innovation “bold conception, careful argumentation, and no fear of failureâ€. . In the past five years, the company has set up a project team led by the general manager for Yuchai's products, integrating the company's four major system resources of technology, sales, quality, and production, and established a "green channel" for Yuchai products in the entire process: In terms of product development and technical communication, the Chief Engineer took the lead, and the Technical Center was responsible for strengthening communication with relevant departments such as the Yuchai Technology Center, giving full play to the advantages of the company’s military technology, and applying its own unique insights and ideas to Yuchai’s product development and development. The improvement of old products not only guarantees the progress of development, but also guarantees the quality of development. In terms of sales, Yuchai’s offices are established to fully account for and coordinate the entire process of Yuchai’s products, and all kinds of information that are formed and generated in an all-round way, and timely. Transferred back to the company to ensure the initiative of the work, the accuracy of the information and the timeliness of follow-up; in terms of production, in recent years, more than 20 million yuan has been invested in technological transformation, and the production line of Yuchai products has been established and improved. CNC transformation, at the same time, the company gradually implemented lean production methods, the implementation of node management, which not only guarantees the delivery of Yuchai products During the period, it also promoted a steady increase in production capacity. In terms of quality management, the company has successively passed ISO/TS16949:2002, ISO9001:2000, and GJB9001A-2001 certifications, adhered to the "eight principles" of quality management, and comprehensively used tools such as APQP, FMEA, SPC, MSA, and PPAP. In accordance with the requirements of Yuchai, the company has conducted meticulous control and analysis of all aspects of the production and management process, achieving continuous improvement of product quality and services. Jiangbin Company, by taking the road of "independent innovation with the main engine plant," and building a strategic cooperative relationship with the main engine plant, adhered to independent innovation, achieved a win-win result, and achieved good economic and social benefits. Since entering Yuchai's supporting system in 2000 and officially supplying it in volume in 2001, the company has cooperated with Yuchai in the same frequency and sincerely cooperated with Yuchai Technology Center to jointly complete the development of eight series of pistons and successively provided more than 200 new products. A variety of varieties and achieved an increase of 10% in the annual sales volume and market share in Yuchai.
Establish internal tapping mechanisms. There is a saying: "Although we can't change objective facts, we can change ourselves." As an auto parts company, for the objective facts of price hikes of downstream products, if it is impossible to change, you can think of ways to do it yourself. Reduce losses by establishing internal tapping mechanisms. Since 2005, Hunan Jiangbin Machinery (Group) Co., Ltd. has increased its cost by more than 3 million yuan due to the substantial price increase of aluminum and other major raw materials. In order to overcome cost pressures and reduce costs, the company launched a "cost storm" campaign. After nearly a year of implementation, it has achieved remarkable results. By the end of November, it has generated a calculated economic benefit of 4.1 million yuan, especially aluminum chip pressure. The two projects of block and aluminum slag filtration are long-term revenue projects, which can save the company nearly 3 million yuan every year. By strengthening the procurement product price control and formulating a procurement material price saving prize system, it is expected to save 1 million yuan in the whole year; The disposal of waste materials to the end of November, a total of 1.18 million yuan of waste materials were disposed of, due to price adjustment income 70,000 yuan; various units through the strengthening of internal management, small reforms, set off a "cost-effective, cost reduction," the upsurge. By carrying out the "cost storm" activities, the cost consciousness of the cadres' employees has been greatly improved, and a gratifying situation has emerged that "everyone is gracing costs and everything is cost". From January to November, the manufacturing cost of comparable products decreased by 7 percentage points compared with the same period of last year. Over-planned 2 points, the comprehensive utilization rate of materials increased by 4 percentage points. It is expected to save more than 5 million yuan in costs throughout the year.
Build your own unique comparative advantage. In the new economic era of economic globalization, resource internationalization, regional economic integration, and multinational corporations in the automotive industry, domestic auto parts companies have been pushed onto the stage where they have to compete with multinational companies on the same stage, and some even become " The game between master and apprentice. In this unfair competition in the beginning, how do auto parts companies seek survival and development? The author suggests that domestic auto parts companies may learn to learn the story of “Tianji horse racing†and establish their own unique comparative advantages. Compared with multinational companies, if our products and brands are not as good as others, we can do better in services such as faster response speed and more meticulous service; in terms of products, I cannot compete with others on the entire line of products. I can focus on a particular market, a specific group of people, and do better than others in this one; on the technical side, we cannot compete with high precision and compete with multinational companies on certain technological applications. High and low, and so on, eventually form the company's own unique comparative advantage. I believe that every enterprise can do it as long as it is willing to innovate.
Some experts believe that during the “Eleventh Five-Year Plan†period, it is not only a crucial period for auto parts companies to win or lose, but also a critical period for competition and cooperation, and it is also a “golden period†for auto parts companies to achieve rapid development. Ebb Tide, who will take the lead in the new round of competition, will become the "pride" of the market, and we will wait and see.