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Auto parts manufacturing industry management breakthrough supplier management needs to be strengthened

Release time:

2023-03-03 17:37

Auto parts enterprises are around the main engine factory

as the core to form a dense industrial chain, therefore, the auto parts manufacturing industry has never been able to get rid of the pressure from the main engine factory and suppliers. On the one hand, in order to reduce inventory and reduce costs, OEMs try to pass on costs and risks to supporting manufacturers as much as possible; On the other hand, auto parts companies face many first-tier suppliers, second-tier suppliers, etc., but it is difficult to effectively control suppliers. The supply quality and delivery time of downstream suppliers directly affect the production of auto parts enterprises, and then affect the supply to the main engine factory.

From the perspective of the market environment, the same industry competition of auto parts enterprises is fierce, and they are facing many comparisons in terms of price, quality, supply and service of spare parts. With the deepening of global integration, auto parts companies have to face more and more international competitors. These are the challenges of auto parts enterprises to flexible adaptability - how to ensure the timely supply of upstream suppliers, how to establish long-term and stable supply relationships with automobile OEMs, has become the direction of efforts of auto parts enterprises.

ERP first, relieve inventory pressure

In today's rapidly changing market, more and more enterprises are beginning to feel the operational risks brought by inventory pressure and are beginning to seek on-demand production.

The popularity index of ERP system in the manufacturing industry has gradually risen, and has become a necessary tool for the management informatization of auto parts manufacturing industry.

In logistics and manufacturing, ERP is both the starting point of instructions for business occurrence and the end point for the recording of business results, effectively combining inventory and warehousing, production and the field. The ERP system undertakes the demand notice and demand forecast information from the main engine factory, and ERP provides the product inventory situation to provide real-time and accurate inventory consumption information for enterprises, based on the relationship between supply and demand.

ERP connects different types of customer needs with suppliers' supply through material planning, forecast rollover, and order rollover. ERP makes the manufacturing process and quality SPC (statistical process control) process transparent, providing real-time information to host customers and providing the basis for regular audits of suppliers. Through the external technical supervision and internal process refinement of the OEM, ERP can also improve product quality and control delivery time.

In addition, zero inventory is also a risk. Customers ask for goods regardless of whether you have inventory or not, so you must have a good grasp of inventory. How to reasonably allocate consignment inventory, raw materials, work-in-progress, semi-finished products, finished products, and consignment inventory in the inventory structure. Because the risk of zero inventory is great. How you optimize the entire inventory must be done well to support pull production, which also includes inventory analysis, cost, quality traceability, etc. This also requires the support of information systems such as ERP.

Supplier and procurement management still need to be strengthened

In terms of supply management, the grasp of market demand provides accurate working information for the supply of raw and auxiliary materials and logistics warehousing. However, it is clear that ERP itself still lacks the management of suppliers and procurement. This has prompted more companies to seek new solutions. In this direction, Shanghai GTROVER Drive Shaft Co., Ltd. is not only a pioneer in the industry, but also a good practitioner. Its information ideas have universal reference significance for auto parts enterprises.

In 2010, Shanghai GTRF cooperated with well-known domestic collaborative OA manufacturers to jointly build a collaborative OA platform. Focus on breakthrough supplier management and procurement management. It is reported that the OA project will help GTF to establish a supplier portal to form information resource sharing and inventory consumption transparency, and establish a good cooperative relationship with suppliers. For procurement management, Fanwei has established a "basic data dictionary" for Shanghai GLTF to publish material prices in a unified manner, thereby ensuring procurement quality, reducing procurement costs and procurement cycles. At the same time, Fanwei has produced practical information tables such as "Supplier and Salesman Correspondence Table", "Supplier and Freight Forwarder Correspondence Table", "Supplier and Customs Brokerage Correspondence Table", "Supplier Transportation Cycle Table", "Receiving Place File Maintenance Table, etc." for Natiefu to support procurement orders, and through " The application of the "Steel Pull" module derives the production plan from MRP, and the steel pulls the purchase schedule for approval on the collaborative platform. The Panwei OA system is deployed and constructed on the basis of comprehensive investigation and understanding of the procurement needs of GTF, covering forms and process management such as "supplier invoicing", "CKD procurement", "domestic parts and VMI procurement", "supplier account opening certification" and so on. Panwei OA is integrated with MRP system to truly realize scientific and effective procurement management.

At present, promoting management optimization and enhancing core competitiveness with informatization has become the mainstream trend of the auto parts industry and even the manufacturing industry, and the informatization process of Shanghai GTRF is also worth learning from. Looking forward to the development of auto parts manufacturing industry in the future, the application of ERP and collaborative OA will also become a mainstream trend.