China's auto parts suppliers have made great progress in recent years. China's auto manufacturing buyers are also increasing procurement from local suppliers. Compared with foreign suppliers, domestic suppliers have the following advantages:
1, price advantage
This advantage is mainly due to the fact that China's labor costs are far lower than those of foreign countries. The labor costs for spare parts manufacturing are significantly lower, and raw materials are also relatively cheap to acquire.
2, positive service, fast response
In terms of language communication, foreign suppliers are obviously less convenient than domestic suppliers. In terms of cultural disparity, foreign suppliers pay more attention to the enjoyment of personal private life after work. They often deal with the slow pace of buyers, plus time difference issues, such as 9:00 pm or even 12 pm Point of the conference call with the supplier will bring inconvenience to the buyer. If there is a product defect, the domestic supplier can solve the problem at the buyer within a very short time, and it is more difficult for the foreign supplier to do this.
3, fast orders
Domestic suppliers are much quicker than foreign suppliers in terms of orders. This is often related to culture. The supplier sales department is highly sensitive to orders. Plus, China is a hard-working ethnic group that handles orders and Its potential orders are more efficient than foreign suppliers.
4, exchange rate and logistics risk is small
The financial turmoil continues and the exchange rate changes unpredictably. Buyers prefer to trade in RMB to reduce losses caused by exchange rate changes. In terms of logistics, domestic procurement reduces logistics costs while also reducing risks and increasing speed. Under the pressure of inventory management, many manufacturing industries are trying out the JIT model of materials. Obviously, domestic procurement creates greater possibilities for realizing this model. .
However, domestic suppliers also have disadvantages:
1, R & D capabilities are weaker than foreign suppliers
When purchasing new products, buyers often choose foreign suppliers with strong R&D capabilities. When entering volume production, they will slowly develop domestic suppliers with strong manufacturing capabilities.
2, product stability is not as good as foreign suppliers
The general view of buyers is that due to the relatively low level of China's auto parts industry, there is still room for improvement in the product's process and quality.
3, management
Buyers believe that domestic suppliers pay more attention to economic efficiency, and foreign suppliers pay more attention to reputation. Therefore, in some cases, foreign suppliers are better than domestic suppliers in the delivery period of products; in addition, the rate of job vacancy among domestic suppliers is higher. The turnover rate is higher than that of foreign countries. It often happens that the resignation of the resigned person is not thorough. When there is a problem, I cannot find a contact window.
If local Chinese suppliers want to develop, they must promote cost-price advantages, maintain work efficiency, and provide after-sales services. However, it is more important to overcome disadvantages, introduce more advanced technologies, strengthen communication with the industry, and increase investment in R&D as much as possible. To cultivate more technical talents and build a professional R&D team; at the same time, the company’s ideology and its internal culture also need to be changed to establish a reliable and professional brand image in the international automotive industry.