| With the global economic and the development of domestic people, especially China's entering WTO, auto manufacturing enterprises are facing severe challengers so that more and more makers change their main work to reduce the material purchase cost. China is a lower cost country, there is not only lower labor cost but the technical level developed much recently. So more and more global manufacturing enterprise transfer more purchase volume to China to get lower material cost . Siemens VDO Changchun China (SVCC) is a key account of Siemens Transportation group that they mainly produced the automotive electronic product as the supplier for all the automotive company. SVCC have many locations nearby the global customer and get better asset from the entire customer due to the advanced technology \hard work\more competitive price and better service. They also share most the volume in the global automotive electronic product. SVCC been founded in 1995 and is one of four location that SV invest in China. They mainly produced automotive electronic controlling product and the original customer is FVW and SVW also export to Europe. With the Chinese automotive market development, SVCC developed more products and get more and more customer. Their customer not only including the foreign company but also including the most of domestic engine company ,system supplier and all the final automotive company. In this situation if we still import all the raw material then manufacture the final product selled to the local customer, we should pay some additional cost like import duty and freight except the cost of raw material. and This will reduce our profit due to the higher cost of raw material. Local customer designed many new products by themselves so that they also request SVCC can design new products with their development process. SVCC can't transfer this product to Europe to development and sourcing supplier, so component localization had to change the mainly work. SVCC had done the components localization from Jane.2003 to now. In this two years we accumulate more experience through many supplier's problems been solved. And most problems came from supplier side, mainly: supplier development strategy, supplier strength and the communication with the SVCC. Component localization should finish by two sides within SVCC: one is the division another is purchasing department. General division should drive and purchasing will support. It means purchasing do the components localization according the purchasing procedure and under the request of division. Purchasing procedure is: Advanced purchasing: At first the division provide the detail schedule then the purchasing department send the requirement of quotation, get quotation from the potential supplier , analysis quotation and have a meeting to decide the final supplier. Qualification stage: This stage is including the supplier approval, component approval, manufacturing approval and application approval. and supplier approval and component approval are in charge of purchasing department; meanwhile manufacturing approval and application approval are responsible by the related division. Series purchasing stage: After series of produce, our logistic will send the order to the supplier directly according the current stock status and customer forecast. The last mainly work is Supplier yearly evaluation that will been finished by the team. The team is constituted by the purchasing buyer, supplier quality management, technical person and logistic. The supplier will get different rank according the different score. This rank will also input in the supplier data-base to impact the supplier strategy in the next year. We found how to chose the supplier is the key step after we analysis the problem that happened in the component localization. After we study the supplier chain and supplier chose theory, we bring forward below items to adjust and develop to reduce the risk. Confirm the key resource requirement: we should detailed analysis the requirement to clarify the catalog not only do the simple class. For e.g. we should clarify to the simple injection and insert over molding for the plastic partso that we can know well which catalog is our main work. We should put more energy in this side. Ascertain the resource strategy: we should clarify the primary and secondary not do all the work in the same time so that we can get more saving. At first we should classify component to key part and strategy part, and do the main work on these two kinds of part. Collection the information of potential supplier: we should do the more detailed the work in this side, the sheet should be adjusted to more compatible to get the information that we indeed request. Supplier resource: We should make use of the entire channel to collect all the information about the potential supplier so that to extend the range of potential supplier. And we can source some supplier which have special technology and production line to save more time and cost. Confirm the rule of supplier evaluation and chose: We should extract the good strategy and solution from the global purchasing and wipe off some items which can't be suitable to China and company current status. For e.g we should reduce some higher target and predigest the procedure and rule of supplier chose so that we can chose the supplier which are the appropriate size and level but only want to seek huge supplier. In the meantime we can involve some local supplier that the management seems more mature and system seems right. Another we should fully implement the second source to reduce the risk of single source. Last one we should establish the strategy partnership with the key supplier to get long term and stable development in the future with the supplier. Sum of above all, in this theory I use the supplier chain management and supplier chose rule, analysis some problems that happened in the SVCC component localization process, take apart the reason and find some root cause so we adjust some purchasing procedure, supplier evaluation and chose rule according these. I bring forward some suggestion and new idea through deeply analysis. These suggestions are beneficial for the component localization. |
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