Study On Dahua Supply Chain Risk Management

Since the reform and opening-up policy start in China, Chinese Auto&Auto parts industryhas achieved rapid development, The automotive industry has become an important pillar industryof China’s national economy. In the context of the world economy, global sourcing，moreand more auto parts supplier sale their parts to overseas market. Time of rapid growthin the auto parts industry, the increasing cost pressures also make Chinese suppliers toconstantly adjust their thinking to be effective management. With the acceleration ofinformation sharing and the rapid development of IT technology, enterprises mustmaintain a competitive and collaborative state, need to combine its upstream anddownstream, complete all business, and smooth product sales,profit process andessence of the supply chain. Between enterprises operating environment is constantlychanging, and maximize corporate profits will take more and more risk to the autoparts supply chain. How to understand the needs from customers? How to integrationof intermediate links? How to make the purchasing plan and production plan? Thequestions are also the target for the Chinese and foreign scholars. Although the risk ofsupply chain research showed a grand flourishing, but the aoto parts enterprise supplychain risk research is still needed to further explore.Dahua Machine Mfg.Co.,Ltd. change to an auto parts supplier from an Militaryenterprises, After ten years development, Dahua has become to the largest flywheelassembly supplier in China and Asia. Now the parts are supplied to almost all the automaker in China,and Dahua hase supplied parts to GM, VW and Renault for manyyears. Because of the Schedule frequent changes and other characters of the OEMmarket, extended and demurrage are always happened in production planning, production run&rate and material purchasing. It is also a destabilizing factor for cashflow. For the manufacturing enterprises, good logistic flow、information flow andcash flow will have a huge impact in the market competition. Now it is urgent forDahua to choose a effective supply chain management mode. So the analyse forDahua supply chain risk become very Necessary.This paper combines the characteristics of Dahua on the auto parts supply chainrisk theory. Analyse the status of production chain, purchasing chain and Deliverychain, find the risks and problems in them by empirical analysis. And analyse theseissues with uncertainty together. The aim is improve the enterprise risk preventioncapability，increase the Competitiveness of enterprises. after improvement andprocess reengineering, provide an optimal solution for enterprises information flow、logistic flow and cash flow planning. Finally, Countermeasures was given after ansimulation program running which shows us the difficulties and hinders.