Research On The Development Of Supply Chain Management Of FAW Hongqi

With the continuous development of the industrialization process of the whole society,the trend of economic globalization has become clearer,which also causes the business environment to become more competitive and challenging.Therefore,how to stand out in the vast sea has become a strategic issue that enterprises must think about.But this has gone beyond the scope of the enterprise’s own operation,more is their own overall supply chain system comparison.Against the backdrop that most of the global manufacturing industry has been affected by the novel coronavirus,after 2019,car sales ended the growth period of more than 20 years and showed a trend of decline.At the same time,due to traffic congestion caused by urban traffic planning and overcapacity caused by different car companies entering the car manufacturing circuit,automobile competition has become white-hot.As the "eldest son of the Republic",FAW Hongqi brand is facing more missions while meeting the needs of consumers,but the market performance of Hongqi brand has been in a depressed state.In 2017,FAW Group carried out organizational restructuring after Xu Liuping,chairman of the board of directors,raised the administrative level of FAW Hongqi and directly operated by the headquarters.To promote the comprehensive development of the red flag of FAW,in terms of talent and resources are inclined to the red flag of FAW.After the launch of Hongqi Brand in 2018,the brand achieved a miracle of a sales increase of 63 times in 4 years.However,behind the sales growth,Hongqi brand’s profit did not improve significantly.Therefore,the management of supply chain is extremely important,and a good supply chain management model will be beneficial to the development of enterprises.In this context,the control of vehicle cost has become more and more important for each automobile enterprise.Cost analysis has been conducted by each automobile enterprise to reduce expenses and enhance profit margins.The key to achieving greater profitability is the combined effectiveness and cooperation of the supply chain.The study of supply chain is a critical element in any automobile enterprise,and it is essential to understand it.By managing the whole-chain of the supply chain,we can effectively plan the procurement contract inquiry link,production preparation link prior to vehicle volume,production and manufacturing link after vehicle volume,and terminal sales link,thus improving our market competitiveness.Divided into five chapters,this paper is the author’s perspective as a production procurement engineer in FAW Hongqi.The initial chapter provides a concise introduction to FAW Group and its brand,and elucidates the background and importance of the topic.The second chapter then delves into the current state and problem analysis of the supply chain of FAW Red Flag.The third chapter uses SWOT analysis to analyze the internal and external problems of Hongqi brand and draws preliminary conclusions.Formulating optimization measures for the Red Flag of FAW to optimize circulation efficiency and reduce cost,the fourth chapter was based on integration of supply chain management.We hope to offer sensible suggestions for the optimization of enterprises’ supply chains,thereby providing reference for the company and attaining the brand goal of FAW Hongqi.