Research On Supply Chain Of Fawer-IHI Turbo Co., Ltd

Chinese enterprises are facing increasing competition, as China's merging into the global manufacturing system. Particularly, in the automotive manufacturing industry, purchasing cost accounts for 50% to 80% of the total costs. Purchasing cost has already become the largest component of enterprises costs. With the proposed supply chain concept and the attention to materials requirements planning (MRP), just in time (JIT) production, quality as well as production capacity, the traditional purchasing concept is also being re-examined. Long-term purchase contracts are being replacing short-term purchase technologies. All these tendencies are a kind of inevitable result, that is, stricter requirements to supplier quality, quantity, delivery, price, service, continuity and products continuous improvement while supplier satisfying purchase targets. So, to build a close cooperative relationship with supplier can get better results. Modern purchasing should be based on the center to maximize supply chain profits. Purchaser shall integrate their own business with suppliers'and shall consider added value in the view of the whole supply chain. Purchaser and supplier shall establish alliance or strategic partnership to seek common development and to achieve win-win goal.The article firstly introduces profile of Changchun Fawer-IHI Turbo Co., Ltd. This company policy is to meet customer requirements, to exceed customer expectations, and to maximize company profits. This is a company, who entered into VW Global Purchasing Platform through bidding. In order to face the global market competition, on the one hand, this company shall strengthen its competitiveness by improving management level. On the other hand, the company shall establish supply chain, which can meet not only its own core interests, but also common development with suppliers. Combined with current situation of company purchase supply chain, the article discusses system construction to strengthen supply chain management level. The article also describes, through the internal control theory, how to build management system, which can be accordance with its current status; how to standardize supply chain construction and purchase management activities; how to provide theoretical support to improve supply chain management level. Secondly, the article describes the formation of historical products purchase price, and deeply analyzes problems in purchase basic work through three aspects of supplier system, price formation mechanism and purchase coefficient. The article cites questions of non-standard pricing formation, non-forming of purchase advantages due to dispersion and unreasonable purchase price. On these bases, cost analysis tools are extended to be used to re-establish the reasonable purchase price. The article takes"Compressor Housing"purchase price as an example. It analyzes"Compressor Housing"direct cost structures, including material cost, casting cost and machining cost, to determine the base of reasonable purchase cost forming. On this basis, by fully consideration of semi-variable cost and reasonable amortization amount of plant fix cost, more reasonable products purchase prices are determined, which is beneficial to company own and also considering supplier's center concerns and acceptable for them. In this process, according cost analysis principles, reasonable price is determined with those suppliers, who do not coordinate, and degrade them from first supplier to second supplier. Such company behavior will advantageously transfer to other suppliers the determination and confidence to establish the core supply chain system, which has Fawer-IHI's own characteristics and can make supplier to face international competition together with Fawer-IHI.Thirdly, the article focuses on how to accurately predict future prices of nickel by using theoretical tool of time series and by combining with the rapidly changing economic situation in the international market, and focuses on the feasible scheme to control company purchase cost expenditure by rational use of related contract terms between purchaser and supplier. In practice, purchase amount of nickel -related products accounts for nearly 40% of the sales income and 50% of whole purchase cost. Therefore, its purchasing behavior is self-evident for the importance of business performance. Regarding risks and opportunities from Turbine Housing two kinds of purchase manner, fixed purchase price and quarterly adjusted purchase price according market price fluctuation , the article, on the one hand, describes the use of historical data and documents of nickel price changes and changes in the RMB against the U.S. dollar in LME from 2000 until 2009, and the use of time series, exponential smoothing and other effective tools, to summarize the law from the complicated and isolated data which is irregular. On the other hand, the article analyzes recent information of stainless steel market through Barclays Capital, Bloomberg and other large international research institutions. On these bases, nickel price in the first quarter of 2010 is judged. In the fourth quarter of 2009, purchase plan is made according to the average nickel price of 145,000 yuan / ton in the first quarter in 2010. It is confirmed by later reality that the company saved 3.62 million yuan purchase cost from January to June 2010. The actual data strongly proved the great practical significance to use time series theory in practical work. .Finally, the article describes how to use tools such as TS16949/Formel-Q from supply chain construction point of view. It represents the complete supply chain construction from potential suppliers'evaluation and identification, supplier selection, supplier daily management and supplier quit. Potential suppliers'evaluation shall be reasonably considered from their products direction, financial ability and price competitiveness. Potential suppliers'identification shall be made from three aspects of technology ability, quality assurance capacity and actual purchase price negotiations. Those suppliers who are consistent with guiding principles for company own supply chain construction shall be confirmed. In supplier daily management, suppliers shall be reasonably scored from aspects of quality index, time index, quantity index and service during daily delivery. Company will adjust supplier quotas and the right to participate in new product development according rating results, establish dynamic supplier management system, which are consistent with guiding principles for own supply chain construction, perfect and improve Changchun Fawer-IHI Turbo Co., Ltd supply chain management system.