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Analysis of Advantages of Domestic Suppliers of Parts in China's Automobile Industry

browse: source: time:2019-07-02 classification:Company News

Analysis of Advantages of Domestic Suppliers of Parts in China's Automobile Industry



1. Price advantage

 

This advantage is mainly due to the fact that China's labor cost is much lower than that of foreign parts, and the labor cost of spare parts manufacturing is significantly lower, and the raw material acquisition is relatively less costly.

 

2, the service is active and responsive

 

In terms of language communication, foreign suppliers are obviously not as convenient as domestic suppliers; in terms of cultural gap, foreign suppliers pay more attention to the enjoyment of private life after work, often dealing with buyers' slower pace, plus time difference problems, such as 9 or even 12 in the evening. The point of the conference call with the supplier will cause inconvenience to the purchaser. If there is a product defect, the domestic supplier can solve the problem in the short-term time, and it is more difficult for the foreign supplier to do this.

 

3, the order is fast

 

Domestic suppliers are much more refreshed in terms of orders than foreign suppliers. This is often related to culture. The supplier sales department is highly sensitive to orders, and China is a hardworking nation that handles orders and Its potential order issues are more efficient than foreign suppliers.

 

4. Exchange rate and logistics risk are small

 

The financial turmoil continues, exchange rates are unpredictable, and buyers are more interested in renminbi trading to reduce losses caused by exchange rate changes. In terms of logistics, domestic procurement reduces logistics costs while reducing risks and increasing speed. Many manufacturing industries are experimenting with the JIT model of materials under the pressure of inventory management. Obviously, domestic procurement creates greater possibilities for realizing this model. .



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