How to Supply Parts to Explore Win-win Modes

Volkswagen is definitely not the only car manufacturer that wants to do this. With the intensified competition in the auto industry and the downturn in the auto market this year, price cuts have become an option that every manufacturer cannot avoid. Prices are declining, production capacity is increasing, and sales have been rampant, and automakers have to face huge cost challenges. Just relying on the improvement of the production process, the constant investment in new products, and the inability of cheap labor to pull away from competitors, everyone has turned their attention to the past neglected logistics links.

High cost due to low level

"According to the different understanding of the concept of logistics cost, the ratio you have mentioned may be very different. However, one thing is certain. China's logistics costs are still higher than those of Europe or the United States." The group is very "inviting" data to corroborate it.

According to data from research institutions, at present, the proportion of logistics costs in China's auto manufacturers accounted for 13%-15% of sales, and some are even higher. This means that the ex-factory price of each car will include this part of the cost. At present, the logistics costs of European and American auto manufacturers only account for 8%-10% of sales, and manufacturers such as Japan's Toyota Motor can even be lower than this proportion. "The domestic level is equivalent to the level of Europe 20 to 30 years ago." Wang Jingbo, chief representative of the Shanghai representative office of the French automotive logistics giant Jeffery Co., told reporters.

According to the prediction of relevant state departments, by 2005, China’s auto market sales are expected to reach 1,000 billion yuan. Taking this figure as a standard, the decline in the cost of auto logistics will mean that the auto industry can reduce the cost of 10 billion if 2005. With a car sales volume of 6 million vehicles, each car can be reduced by more than 1,600 yuan, and a manufacturer with a sales volume of 100,000 can save 160 million yuan. Such figures can show that auto makers who have made achievements in reducing logistics costs will be able to earn higher profits than others, or provide products to consumers at lower prices than others. In a word, they can obtain more flexible market space. .

As the market continues to launch new models, coupled with continued price cuts, there is a lot of room for consumers to choose. In addition to the timely, safe and accurate delivery of parts to the factory for production at a cheap price, manufacturers must quickly transport the produced cars to places with market demand. The transportation cycle is too long and misses the best sales. The moment, the situation will be another way. At the same time, consumers have higher requirements on vehicle quality, pre-sales and after-sales services, such as the requirement to extract zero-kilometer new cars and replace parts in a short time, which all require a sound logistics system to support them.

Already manufacturers have tasted the sweetness from reducing logistics costs. This year several active price cuts, sales into the top five of China's auto companies, Beijing Hyundai declared that: The active price reduction is due to the release of production capacity, spare parts procurement system and logistics management, improve the cost, and thus to take the action of consumers.

Both numbers and reality seem to be tempting, but the "cakes" of logistics are not so good. In Japan, where the logistics industry is very mature, logistics is also known as the "dark continent." It is evident that exploring the difficulties and hardships that this continent will face.

How to transport parts?

In recent years, with the prosperity of China's auto industry, the domestic automobile logistics industry has also been able to develop. However, in the face of complex automotive logistics needs, both auto manufacturers and logistics companies are still immature.

At present, there are many domestic logistics companies, scattered distribution, and small scale, it is difficult to form a scale effect. The scope of services provided by logistics companies is narrow, traditional businesses such as transportation and warehousing account for a large proportion, and there are few value-added services. Due to the one-way nature of automobile sales, the vacancy rate of dedicated trucks engaged in vehicle transportation is high, which has become the biggest waste of logistics resources for all enterprises. Some of the institutional and regional barriers, such as regional and policy protection that local auto companies have taken to support local businesses, are to make logistics companies with less strength, and they feel headaches when they provide customers with cross-regional services. Because the effective price system in the domestic logistics field has not yet formed, companies are vulnerable to low-cost vicious competition, which results in a decline in the industry service level, which in turn affects the normal production and sales of automobile manufacturers.

The domestic logistics infrastructure is relatively weak. Although the country has large-scale investment in ports, airports, and highways, it is still far from enough. At the same time, there is a phenomenon of repeated investment in resources. Auto manufacturers are building their own warehouses. Logistics companies are building their own warehouses, and dealers are also building, forming a lot of storage capacity is idle; everyone has their own transport network, you have your fleet, I have mine, compete with each other and bargain.

"These are actually the weak or even absent of logistics management and planning capabilities of automotive manufacturers." An industry source pointed out that because of the dominant position of automotive manufacturers throughout the supply chain, it is most likely to control the entire system. . “It is not only necessary to manage well, but also predictable, able to timely judge changes that may occur in the market, and adjust the supply system.” He cited an example. A large company caused serious problems in the logistics of parts and components due to out of control of logistics management. The spare parts could not fit in their own warehouses and they had to be transferred to the community. Even the farmers around the company's factories did not plant the land. Some small warehouses were built, small trucks were purchased, and parts and components were stored and distributed to the factories. It is very hot. In the past, there was a shortage of spare parts, and companies actually spent 10 times the price of air transport, is also a typical example.

“Parts and components are the most important issues. Everyone in the vehicle transportation is doing well.” For example, starting from Shanghai to Beijing, the freight rates are roughly the same, with the number of passenger cars 1 yuan/km, 1,200 yuan/car, and 8 trucks. Almost 10,000 yuan, the price can generally be controlled in this context. Parts are much more complicated. Due to its inherent characteristics, there are a wide variety of parts and components, and the supplier groups are large and often distributed widely. Therefore, the logistics management of parts and components requires high technical content, and currently domestic companies do not do much better. Even the first domestic automotive logistics joint venture company, SAIC and the Dutch company TNT's joint venture company Anji Tiandi Automotive Logistics Co., Ltd., at the beginning of its creation, dared to position itself as "the core business of vehicle logistics and actively develop its spare parts logistics business." Exel, which has excellent logistics control tower (LCT) management technology, has not yet brought this advanced technology into China.

The gap in spare parts logistics management capacity will form a great difference in logistics costs. The transportation radius of parts and components manufacturers around the factory is an important factor. The logistics cost of the same product with a small shipping radius will also be relatively small. For example, a standard container component will be sent from the West Coast of the United States to Shanghai and Chongqing. The freight rates will differ by nearly 20%, but this does not mean that the cars produced in Chongqing will definitely be more expensive than Shanghai, because inland cities such as Chongqing and Wuhan have formed a relatively complete supporting supply system.

Hard squeeze water is not the way

"If we were to run F1 cars, then we made it." Mr. Yang joked that all F1 China Grand Prix cars and equipment were shipped from Europe to Shanghai through Boeing 747-400 freighters. Freight from Europe to Shanghai. Generally about 400 yuan per kilogram, and a fleet of about 40 tons of transport each time, if all customers are spending money, then the company will be very good days.

Bernie Ecclestone, the wily head of F1, will naturally not let go of his chances of making money. His designated F1 race supplies are all under the responsibility of a transport company under his charge. The expensive freight rates The team is only tolerant, but logistics companies must use similar prices for service. It is only about closing the doors.

Mr. Yang is an operation manager of a small and medium-sized logistics company that started with freight forwarding. In the past year or two, his company has been trying hard to get involved in the automotive logistics market and has achieved a lot of benefits. It has obtained subcontracting from larger logistics service providers. A complete vehicle transportation business came out, but Yang and his colleagues found that this business was almost incapable of making money. "Our 'home' has earned money away!" complained Mr. Yang.

“Now the business of auto logistics is getting harder and harder to do!” Xiao Guoliang, assistant to the general manager of China Shipping Group Logistics Co., Ltd., told reporters. Similarly, reporters have heard many times. As one of the largest integrated logistics companies in China, China Shipping Group Logistics should belong to Mr. Yang’s so-called “home” category. It appears that in the automotive logistics market that has been described as a source of profit, The days of the "family" were not good either. Xiao Guoliang said that when the auto market was booming in the past two years, the auto manufacturers' purchase price for logistics services was not very tight. The main reason was to see if they could deliver the goods on time and safely. This year, the manufacturers kept screaming Depressing prices, logistics service providers have great pressure on profits.

“Automotive manufacturers push logistics costs to suppliers and think that they will be able to do their own thing. This is a very short-sighted approach.” Industry experts commented that if manufacturers simply seek to reduce production costs, in order to maximize profits in the short term, then this This kind of behavior is understandable, but to do long-term development plans, it is necessary to carefully plan the logistics, squeeze out the losses caused by inefficiency, so that the realization of a win-win situation between each partner in the supply chain is a long-term The plan.

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