SCM Strategy Research Of HY Auto Parts Company Under BTO Pattern

Since2002, China auto industry has been through a rapid growth times. By theyear of2009, China has become the world largest auto market instead of U.S.A. Underthe support of Chinese government’s policy, which includes inspiring domesticconsumption, adjusting industry structure and bringing more benefit to people, thesales volume of China auto market is taking fast increase. For auto parts makers, theprosperous in auto market is not only the chance, but also great challenge. Morecompetitions among auto parts companies are unavoidable, which its focusing on therival of SCM. In order to win, every company hopes to shorten inventory and logisticcost by reforming operation mode. A lot of auto parts makers try to apply BTO forstrengthen their advantages. Of course, SCM solutions need to be adjusted while takingBTO.Combined present study status and relevant case, this article proposes therequirement of entire auto industry according to BTO. And then, with the analysis ofHY Company’s supply chain, we also give some strategies in supply chainmanagement against this film’s problems.In line with demand of BTO production, this text brings up a set of new SCMconcept and solution, including information share system, procurement optimizationfor ABC parts, JMI and milk-run, which could improve its SCM, lower inventory andlogistic cost. Meantime, we expect above ideas can give some instructions for otherauto parts makers when facing BTO.