QSTP is a key component company entering the global procurement system

Along with the process of economic globalization, Chinese auto parts enterprises are gradually integrating into the international division of labor. Especially in the current economic crisis situation, the opportunities for Chinese parts and components companies to enter the global procurement system are gradually increasing.

In the export supporting market, affected by the economic crisis, multinational car companies are facing enormous pressure to reduce costs, and their willingness to purchase parts and components in low-cost regions represented by China is gradually increasing, and the potential for component export growth is huge.

In order to successfully enter the global procurement system of a multinational car manufacturer, auto parts companies must meet the basic requirements of transnational car manufacturers in terms of quality, service, technology, and price.

In terms of quality, we must ensure the consistency of quality on the basis of high quality products. Suppliers must introduce international advanced quality management systems and strictly implement them. From the perspective of Hang Sheng's experience, we must ensure product quality from the three aspects of the design and development process, manufacturing process and supply chain management process.

In the product design stage, Hangsheng requires the designers to consider the cost and quality of the product, to have the means and conditions for product verification, and to exclude all possible interference factors; in the manufacturing stage, Hangsheng mainly relies on the details The production process to ensure product quality; in the supply chain management, Hang Sheng used 12 strategies, the same kind of product, Hang Sheng will select a supplier with international advanced technology as benchmarking, and then choose 2 with advanced domestic As a training target, suppliers with a high level of skills and resilience will have a benchmark for learning. The other two will continue to improve and catch up.

Services are multi-faceted, including technical and quality services, warehouse management, timely delivery, rapid response capabilities and product emergency delivery needs. Chinese parts and components companies do not have a competitive advantage in terms of services.

Because China's parts and components companies are far away from international customers, and there is basically no relevant institutional setup in foreign countries, it is difficult to meet the service requirements of buyers, especially in the event of an emergency product failure, it is difficult to provide fast on-site services. China's spare parts companies must actively explore countermeasures to address this issue. First, they must make full use of modern information technologies such as the Internet to eliminate space distances. Second, they can consider setting up offices abroad and providing services nearby.

In terms of technology, the key is to be able to develop synchronously with transnational vehicle manufacturers. This requires Chinese parts and components companies to gradually obtain a higher level of technology through continuous technological innovation.

Judging from the experience of Hangsheng, the "trinity" technology development model is more suitable for Chinese parts and components companies, including independent innovation, international cooperation and integration of factories and schools. Independent innovation is not composure. The mastery of core technologies can take the form of introduction, absorption, and innovation. Hangsheng pays attention to cooperation with international high-end companies, learns foreign technologies, localizes them, and develops new products. This is an important aspect of Hangsheng's technological innovation. In addition, Hangsheng is also very concerned about the road of integration of production, education and research, and has technical cooperation with Tsinghua University, Shanghai Jiaotong University, Hunan University, Beijing Institute of Technology and other universities.

Price is an important competitive advantage for Chinese products. In the area of ​​parts and components products, generally, only when the price of Chinese parts and components products is significantly lower than the prices of similar products in foreign countries, multinational car manufacturers will tend to purchase Chinese parts and components products. This also gave China's parts companies a great deal of cost control pressure.

Hang Sheng's experience in cost control can be summarized as follows: through active technological innovation, to create a low-cost technology platform to reduce costs; through scientific supply chain management, actively cultivate suppliers, so that the entire supply chain has a cost advantage; Through active adjustment of industrial layout, the manufacturing of low-end products will be transferred to second-tier cities, effectively reducing costs.

QSTP is the threshold for Chinese parts and components companies to enter the global procurement system, and is also the key to Chinese parts and components companies to enhance their competitiveness. From the perspective of international experience, the competitiveness of parts and components companies is the key to the competitiveness of the entire automotive industry.

When most auto parts companies in China can meet the QSTP requirements of transnational car manufacturers, China's auto industry will also reach a new level.

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