"Reverse purchase" attracts global attention


On March 25th, the 2004 China Auto Parts Transnational Purchase and Trade Fair was held as scheduled at the Shanghai Exhibition Center. The skies were clear and the Russian-style milky white exhibition center was dazzling under the sunshine, bringing a good mood to the procurement and suppliers.

With the painstaking efforts of the organizer Shanghai International Advertising Exhibition Company, the world-famous auto parts supplier Delphi, Bosch, Valeo and the UK's largest manufacturer of vehicles Rover, the world's largest manufacturer of automotive safety systems TAKATA, the United States The largest automotive electronics manufacturer WAI, India's largest auto parts supplier LUCASTVS, and the world's largest bearing manufacturer INA participated in the fair. Among them, many manufacturers have come to China for the first time to "reach Italians."

In order to show sincerity and show strength, 12 multinational purchasers from 8 countries have carefully arranged their booths in the exhibition and created a peaceful and warm atmosphere for negotiations.

China's big market has attracted global attention. Although the orders for 200 million euros are only the “buydown” of the company’s annual total purchases of 160 billion euros, many companies have sent global purchasing directors. The reporter noticed that Rover sent a procurement team led by the Director of International Acquisitions. TAKATA sent a procurement team led by the Purchasing Directors of Europe and Asia Pacific. INA sent a procurement team led by the Purchasing Director of the Asia-Pacific region. Twelve procurement companies sent a total of 53 procurement specialists, of which 27 were overseas procurement specialists. The procurement involved procurement categories of 248 automotive parts in 16 major categories including chemicals, electronics, metals, ignition systems, and engine systems.

Since the exhibition adopted the "reverse purchase" method: the buyers exhibited and the suppliers came to negotiate. The organizer matched the needs and supplies of the two parties in advance and improved the efficiency and quality of procurement. After rigorous matching and actual negotiation with purchasers, 17 provinces and cities including Shanghai, Beijing, Tianjin, Shenzhen, Chongqing, Zhejiang, Shandong, Jiangsu and Hubei included Wanxiang Qianchao Co., Ltd., South Industries Group, and Ha aircraft manufacturing. Successful matching of 333 companies, including domestic well-known auto parts manufacturers, totaled 1,254 matching sessions.

Although crowds were not felt at the exhibition site, there were suppliers in front of each booth. The reporter caught up with the supplier, Emerson, and Delphi just finished talking to Delphi about the gaps in the next one and asked them how they felt. They said that this is a good opportunity. At present, it only brings about the introduction of the company and its products. It is not clear whether it is clearly defined or not. The reporter noted that most of the negotiations were made by the purchaser asking about the supplier, and the supplier introduced the characteristics and advantages of the company and the product.

The reporter interviewed the person in charge of Chengdu Huachuan Denso Co., Ltd. They have negotiated five or six buyers, mainly to introduce the company's situation and provide samples, because many buyers have not previously contacted, this time first met. The reporter asked if they had received a specific list. They said that they did not get specific products or drawings, but they would contact them further. They think that this needs a process. Unlike shopping, if you feel right, you can hand over the money and hand deliveries. However, looking at the buyer's trends and strategies through this platform is also good.

Delphi believes that this kind of reverse procurement is very good. At this procurement meeting, the procurement staff has also found some good suppliers, and then can look at the field. But they think like dating, take a look. The procurement process in the automotive industry is very strict. The quick procurement decision takes 3 to 6 months, but it takes a little more than a year, because it is necessary to complete the understanding of data, field visits, evaluation scores, qualified sample delivery, quality inspection, and price negotiation steps. Before you can place an order.

When talking about the cost, Valeo Asia Purchasing President specifically mentioned the low-cost advantage of China's labor costs. He believes that there are many private enterprises in China that are very hard-working and can continue production 24 hours a day, 7 days a week. Satisfy the buyer's requirements on delivery time. What worries him is that the quality consciousness of domestic enterprises needs to be improved, the ability of technology development is not strong, and lack of qualified procurement personnel. Language communication is also an important issue. It is understood that Valeo will purchase 150 million euros of products throughout Asia this year, of which 80% will be in China.

In the procurement list provided at the exhibition, the reporter found that the parts and components purchased by foreign manufacturers in China are generally low in technical content, while the continuous expansion of the domestic vehicle market and the large number of CKD assemblies have caused a surge in the number of domestic core component imports. . Global procurement is both an opportunity and a challenge for Chinese auto parts companies. The huge but unbalanced production capacity is a feature of domestic parts and components companies. The lack of core technology is undoubtedly the biggest "soft rib."

In the exhibition hall, the organizers made a large lecture room. Although there are not many listeners, all the buyers' lectures are prepared fully and clearly. Although many Chinese suppliers still need to use translation to communicate with foreign buyers, you can fully feel the sincerity of buyers. There is an old saying in China: Trading is not a matter of righteousness and righteousness. Although people have always been concerned and questioned, why both Ford and GM and many buyers have purchased thunder in China, little rain, large purchases, and small turnover? However, as both the procurement and supply sides feel that the premise of cooperation is a suitable and win-win situation, at least they are conducting open-minded exchanges.



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