Supply chain management leads the transformation and upgrading of automobile and manufacturing industry

For automotive parts and industrial manufacturing supply chains, time is the lifeblood. "Logistics is usually classified as a cost center for enterprises, but in fact, effective supply chain management can convert cost centers into profit centers." On November 10, in "Precision Logistics Wins the World - Auto Parts and Industrial Manufacturing At the "Supply Chain Management Salon", Li Jinying, general manager of UPS China North China Freight Forwarding Business, expressed the importance of supply chain management for enterprises to control costs and improve operational efficiency.

This forum is jointly organized by CEConlines and the world's leading logistics and supply chain service provider UPS, and invited third-party supply chain experts and high-level representatives of successful companies to share the current development of the industry and the Opportunities and challenges faced, discuss the way of auto parts and industrial manufacturing supply chain management, and how customized logistics solutions can effectively help enterprises to transform and upgrade.

Keep up with the changes of the times and face the challenges head-on

A series of new trends in the fields of market, technology and talents have brought new challenges to automobile and manufacturing enterprises. challenge. Pei Kewei, Deputy CEO of Global Sources and Publisher of CEConline, said that the whole world is changing, and the needs are changing. Enterprises should find their own correct choice or correct strategy, and innovation will be one of the challenges faced by Chinese manufacturing in the future. big challenge.

According to data from the China Association of Automobile Manufacturers, China has become the world's largest auto producer and largest auto market for seven consecutive years. At the same time, a study by the Development Committee of the State Council predicts that in the next 10 to 15 years, 16% to 17% of the annual GDP growth will come from the growth of the auto industry. In addition, data released by the National Bureau of Statistics shows that from January to August this year, industrial manufacturing enterprises above designated size achieved a total profit of 4,058.36 billion yuan, a year-on-year increase of 8.4%, and the growth rate was 1.5 percentage points higher than that from January to July. "This shows that the growth rate of the entire industrial manufacturing industry has accelerated, and its optimization is in progress." Li Jinying said.

However, according to the latest report "White Paper on "Excellent and Strong Made in China" Enterprises 2016" released by UPS, the overall economic assessment of China's export manufacturing enterprises is less optimistic than the previous year. Chinese export manufacturing companies face challenges on both the supply and demand sides, the two most frequently mentioned are the intensification of competition among domestic companies and the declining demand from domestic customers. In addition, all countries in the world have put forward higher and higher policies and requirements for energy conservation and emission reduction for the automobile manufacturing industry, which is undoubtedly a new challenge for the automobile industry. Industrial manufacturing is mainly faced with passive technological transformation and passive structural innovation.

Li Jinying also believes that innovation is a big challenge for enterprises. "How can you really innovate? I think it is customer-centric, and customer demand is the driving force for your innovation."

She also said that from the analysis of UPS's global industrial procurement, the following three Trend: The traditional form of B2B has become the form of B2C. Buyers bypass dealers and purchase directly from manufacturers; in addition, with the rapid development of the Internet, online procurement has also become a new trend; It directly determines the buyer's decision, which is also very, very important. Therefore, this requires enterprises to manage their own supply chain while doing their own production.

Solve logistics pain points and improve customer satisfaction

People in the automotive and industrial manufacturing industry like to compete for quality, but with the advancement of technology, the quality gap between enterprises has gradually narrowed. , Supply chain management and logistics services are the future competitiveness of enterprises.

Gu Wenzhi, general manager of Shenzhen Pedno Supply Chain Management Consulting Co., Ltd., has 35 years of supply chain experience and 16 years of experience in corporate consulting and training. He focuses on how to improve customer satisfaction from a supply chain perspective. Gu Wenzhi said that the supply chain emphasizes seamless connection. Seamless docking is B2B, B2C or logistics services, it is to do seamless docking, "If you are just a porter, you will not like this industry, if you are manufacturing, your things must be closely integrated with the market, Seamless integration has become very important."

In terms of improving customer satisfaction through logistics services, Li Shuhuan, general manager of Tianjin Youshengfa International Trade Co., Ltd., shared his own business practice cases: "We try to choose a large logistics company to ensure the quality of loading and unloading of goods. , Small logistics companies do not cooperate. Although the price seems to be low, it is easy to damage the product during transportation. At the same time, it is guaranteed to provide customers with one-stop service, which will definitely improve customer satisfaction. I also said just now When the customer comes to you, no matter what they need, they can purchase it at one time without worry, which also saves his purchase cost, so the customer will be satisfied.”

From the perspective of the supply chain Said that traditional industries may be large-scale output, but there are also many small-batch and diversified industries. Kong Bin, general manager of UPS China North China Express Business, said that for different customers, UPS is more based on customer demand. Customizing a logistics system requires the logistics company to build a logistics system from upstream to downstream in the logistics supply chain, including transportation capabilities and technical capabilities, and more tailor-made logistics systems according to customer needs. These points meet customer needs.

Optimize supply chain management and transform cost center into profit center

The traditional cost reduction method has been ineffective for enterprises, and the increasingly fierce market competition makes enterprises have to strengthen supply chain logistics management .

Tianjin Jinzhuo Group Co., Ltd. is a major exporter of rubber extrusion industry and ladder industry in China: rubber extrusion Qiang occupies more than 25% of the North American market. But at present they are also facing a problem of logistics cost. Yan Xunian, deputy general manager of Golden Anchor Group, said: "We just have no way now. If we can improve the timeliness without increasing costs, it will definitely help us further expand. The market is very helpful.”

In this regard, Li Jinying believes that strong supply chain logistics partners generally have the following characteristics: global logistics network, strong customs clearance capabilities, advanced management systems, and profound market insights and global best practices. The demand for supply chain logistics in the automotive and industrial manufacturing industries is mainly reflected in the following six aspects. The first is a single carrier. A single carrier can reduce intermediate liaison links and improve management efficiency; a single carrier can also provide one-stop services. The second is the visualized shipment tracking system. The visualized tracking system allows enterprises or customers to monitor the status of cargo transportation at any time. The third is transit speed and transit time. The fourth is flexible logistics options, which can improve customer experience and customer satisfaction. The fifth is the return post. The sixth is to balance speed and cost.

Kong Bin, general manager of UPS China North China Express Business, said that as a global logistics leader, UPS provides solutions to meet customers' timeliness, safety and customer experience. Such a goal can be achieved through different logistics solutions, "So I think in the customer, I feel more concerned about the value of the goods, the safety of the goods and the reliability of the goods. From this point of view, we can balance the cost and profits. In fact, supply chain logistics can help companies control costs and improve operational efficiency, turning them into profits.”

UPS provides customized solutions for automotive and industrial manufacturing companies. For the automotive industry, its safety and timeliness are particularly important. Li Jinying said that the profit of vehicle sales in the automobile industry is not greater than its after-sales service, but most of the profits come from after-sales service. After-sales service will require the goods to reach the customer in time. If the delivery of the goods early will increase his logistics cost, it is the management cost of his warehouse. Therefore, for enterprises, they are pursuing zero inventory in order to reduce management costs. This puts forward high requirements for logistics providers. They can neither deliver early nor late, but they must deliver on time, and UPS can use different transportation tools around the world to do this and deliver on time.

Picture/Cheryl