Realize the law of effective survival of informationized auto parts companies


With the increasingly fierce market competition, many domestic auto parts companies have long realized that the realization of management information is undoubtedly a powerful law of survival in this era.

After China has become the world’s fastest-growing automobile consumer, the domestic auto parts industry has also boomed with the boom in the auto vehicle market. As the basis of the automotive industry, the domestic market already has 40,000 parts and components companies and 100,000 processing companies.

According to statistics from the China Machinery Industry Enterprise Management Association, from 2002 to 2003 in China, there were approximately 1600 national key spare parts enterprise groups and parts and components companies with annual sales of over 100 million yuan. With fierce market competition, how to use advanced information technology management methods to strengthen product design, R&D, and production information management; to strengthen the efficient communication and management with upstream and downstream manufacturers, becoming a top priority for parts and components companies.

Pushing down dominoes

In the face of the huge trend of car consumption in China, the dominoes in the auto industry have been pushed to. On the supply chain of automobile manufacturing, the competition of automobile spare parts companies will undoubtedly become fiercer.

China's automakers after joining the WTO will bid farewell to the “profit era”. Until today, the profit rate of finished vehicles in the Chinese market is much higher than the world average: the profit rate of global OEMs is very low, generally only 3%, but China has 15%, and even reached 30%. This does not mean that China's auto vehicles have a cost advantage. On the contrary, the average cost of China's auto manufacturing industry is 30% or even 50% higher than the world level. It is clear that in the face of unprecedented "crowded" competitors in the Chinese market, automakers have had to shift their focus from pure marketing offense to cost control. The decline in the profit margin of the manufacturers will inevitably pass on pressure to the parts suppliers. The choice of surviving or dying places a heavy burden on more than 15,000 auto parts manufacturers across the country.

15,000 spare parts companies will inevitably begin to compete for survival of the fittest.

The law of survival in the information age

Some people predict that by 2010, the overall number of Chinese parts suppliers that have undergone large-scale integration will be reduced by 70%. Because many companies not only have to face the price pressure from the domestic market, but also to meet the decline in domestic auto parts tariffs, foreign investment in the dumping of strong suppliers. Among these, the biggest challenge from the industry itself is that the application of enterprise management information and e-commerce is still lagging behind.

Although domestic parts suppliers can use low-cost advantages to enter the vehicle manufacturer's global procurement network, how long this cost advantage can last forever is unclear. VISTEON (one of the world's second-largest auto parts manufacturers) Senior executives once pointed out: “When global vehicle manufacturing shrinks and slumps, auto parts manufacturers have to go through a transition. Automakers will gradually implement global procurement of parts to reduce costs and increase profits. In order to respond to the development of the situation, enterprises have also begun to implement a global production model. China’s more than 100% profit is certainly a temptation.” The subtext of this remark is that as China gradually implements the relevant provisions of the WTO agreement, the domestic auto parts market It is bound to become the Jurassic merger of the weak meat.

With the crisis approaching, many domestic auto parts companies have long realized that the realization of management information is undoubtedly a powerful law of survival in this era. From east to west to the east and from the east to the south, from the southeast to the Changchun and Haila, different levels and different forms of auto parts and components companies are playing at full strength.

To this end, in order to cooperate with the "China's first auto parts entrepreneurs annual meeting" held in Beijing in early June of this year in cooperation with the China Automobile Engineering Society and the China Machinery Industry Enterprise Management Association, "Electronic Commerce" magazine launched some automobile manufacturing in this period (including Parts) industry-renowned informatization solution provider survey. At the same time, in the June issue of the magazine, we will launch the topic of “informatization of the automobile manufacturing (including parts and components) industry” in response to the informatization focus that industry users are most concerned about. It is hoped that all IT companies concerned with this industry will be able to contribute ideas and suggestions to promote the development of information technology in the Chinese automotive industry.


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