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Car company risks are accelerating the transfer to supply chain companies

2020-06-15

A new pneumonia epidemic has exposed many problems of car companies, such as production management, cash flow management and supply chain management. The pressure on the production and marketing of cars has been superimposed, and the risks faced by car companies have doubled. It is worth noting that these risks are now accelerating the transfer to supply chain companies.

A local auto parts company said in an interview that the current Toyota production model adopted by auto companies largely transfers the risk to suppliers. The risk of auto companies increases, and the risk of supply chain companies may therefore increase geometrically.

Specifically, the negative impacts of car companies on supply chain companies are mainly reflected in the following aspects:

First of all, auto companies have lowered prices, so the pressure on funds in supply chain companies has increased. Compared with suppliers, OEMs have a more say in the price negotiations, which is also the bottom line for most car companies to require suppliers to "fall". Nowadays, auto companies have increased capital pressure, and price reductions are more common.

Secondly, the situation of arrears in payment has also occurred frequently, which makes the situation of supply chain enterprises more difficult. An automotive electronics supplier pointed out: "At present, it is generally not seen that OEMs have taken actions and measures to help supply chain companies. On the contrary, there are many cases where payment is delayed and orders cannot be predicted." At the same time, suppliers also face other Difficulties in areas such as accounts receivable and raw material supply chain difficulties.

In addition, unstable orders and related product/technical cooperation cannot proceed as planned, which may affect the subsequent development of supply chain companies. In recent interviews, many orders from car companies have been cancelled. It is understood that the reasons behind are mainly concentrated in the following two points: First, due to the epidemic situation, the car company’s new car plan has changed, and it has no choice but to cancel the order; second, because the price and other aspects have not been negotiated, let the supplier from the previous single-point supplier Gradually marginalized.

For supply chain companies, to change the current situation, the most important thing is to strengthen their own strength. Only in this way can they have a stronger ability to resist risks. Parts companies need to have a sense of crisis and accelerate the promotion of product technology, manufacturing process, quality system, talent management, digital transformation and other aspects, so that enterprises can upgrade together under the impetus of industry upgrade.

At the same time, supply chain companies should choose customers carefully. Analysts said: "Now suppliers are beginning to pay attention to the health of supporting car companies. In addition to the hard indicator of sales, suppliers are gradually paying attention to the changes in the financial status, inventory levels and corporate management structure of car companies. Only in-depth understanding of customers' Only after the actual situation can we help these supporting enterprises to make corresponding business roles to avoid risks."