Auto Parts Supplier Order Qualifiers And Order To Win The Elements Of Analysis And Operation Of Strategic Advice

Facing the fierce competition from international automotive parts suppliers, it is a critical challenger for China local automotive parts suppliers to improve their operation capability, strengthen their competitive advantages to win the market in the fast growing Chinese automotive industry.This paper summarizes the status of global and Chinese local automotive industry, characteristics of automotive supplier chain, and the business relationship between automotive manufacturers and automotive part suppliers. The research objects of this paper are international automotive suppliers operating in China and Chinese local suppliers and their customers (car manufactures). Order qualifier and order winner analysis is conducted for both international supplier and local suppliers. The national factor is identified as one order qualifier. The survey to car manufactures shows that technology, quality and quality system are categorized as typical order qualifiers, while price, flexibility, logistics and supplier chain, plant location, delivery lead time, product development and innovation, management capability are categorized as typical order winners.The survey also indicates that the top five most competitive order winners and qualifiers of international suppliers are technology, product development and innovation, management capability, product quality, facility and process. The top five most competitive order winners and qualifiers of local suppliers are price, service, flexibility, logistics and supplier chain, lead time. Seven out of the eight most competitive criteria of international suppliers are in line with the most important eight criteria in car manufacturer's view. But only three out of the eight most competitive criteria of local suppliers are in line with the most important eight factors in car manufacturers' view. This strongly support the conclusion that international suppliers fit very well with customers perspective and requirements and have much stronger order winning capability.Comparison analysis is made for international supplier and local supplier on the operation competitive priorities of human resource, cost, delivery and service. Order winners and qualifiers and competitive priorities are outlined in consistent with the process of supplier selection and evaluation.Based on the competitive position where several types of local suppliers stand, and government policy on automotive industry, operation strategy suggestions and solutions are provided to the local automotive suppliers in cost, quality, product development and cooperation with automotive manufactures'...