The hottest supply chain management has become a s

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Supply chain management has become a strategic issue for enterprises. At present, the profit space of manufacturing enterprises is extremely thin, and the pressure to reduce costs is constantly passing from one supplier to another along the supply chain. For any enterprise, the manufacturing industry is no longer limited to the operation of domestic electronic universal experimental machines. We are moving towards a truly globalized economy, and outsourcing is the general trend. Therefore, the supply chain has become increasingly complex, which poses an increasing challenge to management. However, it is in the supply chain that manufacturing enterprises can achieve new efficiency and save production costs. These factors will help enterprises maintain profits in today's lean manufacturing environment

in the United States, the manufacturing sector is recovering, and corporate profits are also growing slowly. On the whole, manufacturing enterprises are obviously reluctant to pay. In addition, when they do spend, they expect every dollar they spend to bring more returns

at present, the trend of manufacturing enterprises transferring the pressure of reducing costs to suppliers is particularly obvious in the automotive industry. Automotive manufacturers cooperate with multiple suppliers to obtain automotive parts. Automobile manufacturers (or OEM enterprises) dictate to each supplier, not only specifying the product specifications, but also including the acceptable cost of producing parts

with lean production becoming increasingly lean, suppliers are controlling costs by creating new efficiencies in the supply chain. More and more suppliers have turned to powerful ERP systems and supply chain management software. These systems have strong flexibility and can quickly adapt to the rapidly changing OEM requirements, and effectively communicate these changes to the appropriate suppliers

oem enterprises are dealing with several major problems affecting the supply chain: the rise of automobile production, quality and recall problems, and data management

more and more models

the number of models launched by each automaker is surging. At present, automobile manufacturers launch about 500 different models every year, and the number is expected to reach 700 by 2010. With the growth of the number of vehicle models, the number of automotive components required to manufacture each vehicle is also rising. With the automotive components getting more advanced year by year, the manufacturing process has become more complex. With the increase of the number of new models, OEM enterprises will issue instructions to suppliers that the designed systems and modules must be applicable to a variety of platforms to reduce costs and improve revenue. This will lead to more complex design, engineering and manufacturing, and will require new it efficiencies to simplify supply chain management. Electronic components currently account for about 30% of the cost of each vehicle, which will increase to about 40% by 2010. This is of great significance because all functions of the car depend on ubiquitous electronic components, including sensors and traction control, airbags and four-wheel drive systems, as well as countless other car functions, such as the booming in car entertainment system. At present, about 40% of car recalls every year are also related to the defects of electronic components

oem enterprises face the demand for faster time to market and delivery time, which brings new pressure to the supply chain and increases the risk of recall. The latest relevant statistical data show that it can realize microcomputer automatic measurement and control. In 2003, the automobile recall cost the automobile industry $14billion, and automobile enterprises recalled more than 24 million vehicles. Obviously, the importance of improving quality to OEM enterprises is unprecedented. OEM enterprises are using major suppliers to manage suppliers at other levels, and transferring cost pressures and recall costs to the supply chain. OEM enterprises will carefully check the data to accurately determine the location of defects, so that the corresponding suppliers are responsible for the maintenance costs. OEM enterprises will also be responsible for more enterprise restructuring to obtain process efficiency, and will add production bases closer to customers, expand more advanced production bases, close old production bases, and spare production forces will be idle. With the adoption of these measures and the relocation of manufacturing bases, the new focus will be on how to implement best practices in the supply chain to simplify processes and reduce costs. In addition to all production problems, OEM companies' demand for data compliance will become increasingly important. In the next three years, the cost of complying with the mandatory requirements of the Sarbanes Oxley Act and the tire pressure safety act will reach $2billion. This once again emphasizes the integrity requirements of the data generated by ERP system

the trend of supplier groups reflects the trend of OEM enterprises. The primary suppliers of manufacturing modules and systems are forced to bear more and more pressure to reduce costs. In addition, suppliers in the North American market continue to lose market share in the competition with suppliers in Europe and Asia, because their largest customers such as general motors, Ford and Chrysler continue to lose market share

the primary suppliers of automobile enterprises produce complex modules and systems, with an annual revenue of $500billion at present. These large enterprises design, develop, assemble and distribute modules and systems for OEM enterprises. This is a global full-service business with global pricing and a highly complex supply chain. Tier-2, tier-3 and tier-4 suppliers manufacture components and provide components and raw materials for Tier-1 suppliers. The revenue of tier-2 suppliers in 2004 reached US $200billion

suppliers pay attention to the electronic parts with high recall rate and quality tracking to determine the location of defects and where to evaluate the maintenance cost, because OEM enterprises require their suppliers to be responsible for the cost of warranty and recall defect maintenance. These two points imitate the OEM enterprise to adjust the scope of the oscilloscope to make the signal display on the full screen as much as possible (display the signal to be tested on the full screen as much as possible: 1. It is convenient to inspect the local details of the signal, and the current operation mode of the industry, so the primary suppliers can control the additional pressure to reduce costs and maintain profits. Providing software with full visibility for the supply chain is very important to help suppliers isolate the defective parts. Automotive suppliers use e-commerce solutions to manage business processes more than other industries. As full As part of the measures that meet the mandatory requirements of lean production, suppliers need to solve the problems caused by adopting different ERP systems and the different types of data exported by ERP systems. Differences in data types can lead to errors in the report, which will bear the data in complying with the continuously generated report regulations (especially the Sabine Oxley Act)

global perspective

another trend of current automotive suppliers is that the industry is examining the supply chain from a domestic and global perspective and making strategic acquisitions to obtain products and enter new markets. The top ten suppliers in the world will continue to grow by swallowing smaller auto parts suppliers. Last year, the global sales of all the top ten suppliers exceeded US $10billion

in addition to the acquisition activities of primary suppliers, there will continue to be more mergers, acquisitions and the establishment of partnerships in the field of automotive suppliers to reduce costs and increase revenue. This will lead to the following situation: various ERP systems will be integrated to manage a single business. In 2005, OEM enterprises will strive to improve the relationship with suppliers, because in the past two years, due to the pressure of reducing costs, the relationship between the two sides has become fragile. Restoring mutual trust will be a gradual process. The goal is that OEM enterprises and suppliers can work more closely together to identify inefficient areas in tool processing, development and component manufacturing, and commit to innovation, with a view to eventually bringing new efficiency to supply chain management

in order to maintain competitive advantage in the global economy, manufacturing enterprises need to deeply study their supply chain. OEM enterprises and suppliers now find that there are still many opportunities to use the supply chain to gain strategic advantages. To realize strategic advantages, we need to simplify processes, establish efficiency, improve communication, and accurately point out the relevant areas in the supply chain, so as to help manufacturing enterprises determine which trends in business operations affect quality assurance, recall, defects, claims, litigation, compliance, and determine which other areas have a negative impact on performance. Based on the information provided by these data, corresponding improvement measures can be implemented


now, automobile manufacturing enterprises all believe that strategic investment in ERP of information technology and more advanced supply chain management software is very necessary to improve overall business and cost efficiency, which can improve productivity, improve return on investment and enhance overall profits

with the continuous increase of new investment in the supply chain field, automobile manufacturing enterprises will be able to and widely use electronic information technology in automobiles, and better use all the functions of their ERP and supply chain solutions to achieve the best operational benefits and achieve their business goals. (end)

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