Interviews with guests:

  Association representatives:

  Dr. Chen Yilong the U.S. auto industry Action Group AIAG director of the Asia-Pacific Region, and Chief Representative in China

  Suppliers representatives:

  Run-day publicity crankshaft Limited Vice President, International Trade Minister

  The industry:

  Wen-Kai Chen guise car network CEO

Moderator: Now many of the plants, including vehicle parts and components enterprises, the majority of components in the global procurement, what are the reasons to have a "global sourcing" of such a concept of «

Chen Lung: global procurement, said lot of time together. However, in 2001 after becoming a trend. According to the survey, 70 of the automotive industry companies to China to purchase. Therefore, global procurement in China occupy a very important position.

Wen-Kai Chen: But in fact the global procurement is a novelty, but also will not exist for a long time. Because the procurement vehicle plant, with the general comparison between the suppliers close relationship as it relates to research and development, logistics support. General car plant will not easily change suppliers. Now the three major car plants in North America, much to China came to new suppliers, which in itself is a change in the original stability. However, if stability in China, will not easily change. So global procurement is not the long-standing.

Moderator: global procurement to which products to China is relatively keen »

Publicity: The big buyers are not very high technological content, facilitate the processing of such a product.

Moderator: on the domestic suppliers, on the face of so many international giants purchase, you have not prepared the hearts »

Publicity: For China's internal combustion engines, auto parts enterprises, doing good business overseas will have their own strategy, we actively look for opportunities. For us, the domestic market because we have very strong growth, we must seize the door of the orders of foreign OEM orders, we have to choose a meaningful strategic partnership, to be able to find our enterprise technology and management developed by leaps and bounds Useful partners.

There is also a problem, because the global procurement mainly OEM-based, and the OEM production of the equipment as well as the stability, technical content requirements are very high. As we Chinese people's concept of quality, and our equipment, with foreign counterparts may have relatively large gap. This investment in facing a problem. Therefore, the international market for us now is a question of choice.

Wen-Kai Chen: Zhang Such attitude of the Chinese on behalf of many suppliers now on the global procurement of a gesture. We deeply appreciate this point, China is a very good supplier to major international procurement to find the target, but they are to meet the needs of the domestic car plants, the production capacity are very tight, this type of suppliers in China is now the "The Emperor's daughter, no worries about the marriage", when they face cross-border purchases on a "choice" issue.

Moderator: I would like to ask Dr Chan, when domestic suppliers of their good you do not eat the meat of this transnational procurement, how do you »

Chen Lung: In fact the very want to export enterprises still very many. Because many of the enterprises are also aware that a long-term point of view, to do the strong, complementary to the OEM is a very good opportunity. On the one hand, OEM in terms of quality, logistics, e-commerce and other aspects of relatively high. If they can support, in terms of your competitors, you in a very advantageous position. On the other hand, the OEM manufacturers to strive for the supply contract, it would mean that a long-term strategic cooperation.

Wen-Kai Chen: In fact, global procurement situation more complicated, lively surface of prosperity, but in fact the outcome of the few. For instance, Zhang found the Federation of the situation: We have several companies almost every month of international buyers to visit, but he in this regard as the international export marketing general manager, he will find that this year things are no results, Not a list. Why do some people to visit often, it is not the results » Buyers from speaking, they may have problems.

Moderator: I would like to ask of the total, is not like just Chenzong said this way, every day someone will come to each other, but no one can really set »

Publicity: There are several cases, one is our own target market, we have targeted the development of strategic cooperative partnership. This time is our main force of the attack. Another is a passive, basically Every month, some internationally renowned enterprises to where we look at, but they purchase some of the products are mature products, some are new products. For a new product development cycle, a relatively long time, the relatively high initial investment requirements. For mature products, from Members of the understanding, the ability to engineering products also have some differences. To a very important concept, all the logistics of different ideas, to a large part of Chinese enterprises is that the goods shipped to the port, is tantamount to reach the hands of foreign investors, my task has been completed, not to consider my products The vehicle on the West supporting what will happen. This regard, there are also some domestic enterprises to eat the losses in this area, so we have a more cautious wait-and-see attitude.
 
Moderator: Chenzong, you are connected to the procurement and supply-side brokers. As brokers can do some of what kind of efforts to improve their current communication is not very smooth problem »

Wen-Kai Chen: I have just said that the global procurement now some of the difficulties, reflected in many aspects. By just two speakers, is that both sides are already familiar with how to make after the supplier to meet the procurement requirements. Vehicle Factory is very worry about the role, he came to China procurement, in addition to finding suppliers after the end of each other, but also a genuine supplier before to improve the quality of, process improvement, and the initial supply, there are problems later how to help him Changed. In fact I know, including the three major U.S. and European buyers all year round will be a lot of quality engineers in supplier factories, to help them from the technology, improve product quality, this is a very common phenomenon. Also in logistics, the basic vehicle by the plant to focus on organizations and not by the suppliers themselves transported to North America, he may find a third-party logistics agency to all suppliers of integrated logistics. These are car plant, the buyers worry about, so the Chinese suppliers during this period of time is very lucky. As brokers, we are mainly doing is the first level of service, that is, information services. A large number of buyers he has to come to China to match the appropriate providers, but in the vast human sea, he may not be able to find a total Zhang, and as such the total of outstanding young man and such a day-run enterprises are emerging. We help buyers and suppliers to do a lot of match work.

Moderator: So you are an auto parts by the marriage.

Wen-Kai Chen: China's supply because of market changes very fast, every year, new suppliers there, every year there are some general of the original suppliers now become relatively prominent suppliers. For such buyers, he must fast for him to find suppliers may be a significant amount of time costs and labor costs. The providers are also, of the total just say that they have to choose, in the end what kind of buyers are most suitable to me. At this time we have the information to help the two sides level match, and that is that we played the white middle of the bridge.

Moderator: our nation's suppliers to provide products that are cheap always seems this is the core competitiveness of the host, in addition to raising the prices have not thought about other than the competitiveness.

Publicity: We do pricing, usually give their stay in a reasonable profit, many things are suited to China's market development based on the data to calculate, while many procurement of the International Chamber of Commerce on the profits of some common space placed on the procurement in China Their Chinese suppliers of some patient support and education, I think it slightly Cileyidian. I hope that the buyers can tell me that they are the composition of the market, they need me to observe how they market rules, how to serve them. Because we are also facing China's growing shortage of human resources, the rise in the cost of the facts, how can we also find profit growth points, service is a very important point, so I would like to how to better serve our customers, but in this , We communicate the message too little.

Moderator: Zhang said the total procurement needs to have more patience. Do you have the patience? »

Chen Lung: I think it is very difficult or a statement to the spacious. But I would like to stress the point of the very right, that we should be more communication, a lot of things inside, only if we establish a good communication channel, and think more for each other, so that needs to be done to achieve a win-win .

Moderator: the future trend of global procurement in the end how will it go » Please give us share.

Wen-Kai Chen: predicting the future is a difficult thing. From this stage, global procurement in China in the practice of a certain challenges. Mainly attributable to the rapid appreciation of the RMB comparison, is now open to the appreciation of the exchange rate by nearly 8; some products and the export tax rebate rate of decline is still early buyers of China's own high expectations, but actual operation, many Did not achieve their desired objectives, are also lower their expectations.

But overall speaking, because the Chinese car market will continue to grow, parts and components suppliers in China to improve their management capacity, reduce costs there is still a lot of space, China has become the ultimate global automotive parts manufacturing center will not be the trend Change, global procurement is mainly concentrated in China's situation will not change.

Another trend, from the procurement in terms of variety, with the overall management of Chinese suppliers have increased the ability to create economies of scale, the original does not have the advantages, including relatively high technological content of products, may also be included in the procurement field of vision .

The automobile industry is bound to become a globalized industry, domestic firms in order to enlarge and strengthen it must adapt to globalization. If you find a multinational buyers, it has brought to you from a local supplier into international suppliers, you may become an international big companies, providers of such opportunities in China must grasp well.

Even now the buyers frequently to visit, no final results, in fact, in terms of suppliers, can be worthy of an opportunity to learn, because he is the representative of the buyer's demand to exchange with you, in this process Suppliers can know where inadequate, where the need to enhance and improve when you really meet the requirements of large buyers, there will be many buyers looking for natural home. Suppliers to grasp such an opportunity, even now that trouble will not refuse.