In the new era, China's automobile production and sales are the world's first, the industrial chain and supply chain system are becoming more and more perfect, and the high-quality development of the industry has achieved important results. As one of the earliest modern passenger car joint ventures in China, FAW-Volkswagen insists on "user-centered" and continuously develops and innovates. In October 2022, it completed the 25 millionth complete vehicle offline, becoming the only passenger car company that produces and sells more than 5 million vehicles since 2020. is facing the challenges of multiple pressures such as changing international economic situation, deep reconstruction of the automobile industry, and the epidemic and chip shortage, such excellent achievements are hard-won and highly representative.
Against this background, the interview team of 2022, FAW-Volkswagen Procurement System came to Jiaxing and Shanghai. Through a discussion with relevant persons in charge of the Procurement Department and outstanding supplier representatives, deeply explores FAW-Volkswagen's winning secret from the perspective of the supply chain.
Supply and promote production, comprehensive transformation of the procurement system
Procurement is an important part of enterprises ensuring product quality and development, reducing enterprise costs, and accelerating the flow of materials and information. It is not only the starting point of the internal supply chain of the enterprise, but also the node connected with the external supply chain. At FAW-Volkswagen, procurement also plays an important role in the development and transformation of enterprises.
FAW-Volkswagen Procurement Director Zhang Ming
FAW-Volkswagen Procurement Director Zhang Ming said that focusing on 2022, FAW-Volkswagen Procurement Director Zhang Ming said that in 2022, FAW-Volkswagen insists on focusing on user-centered product transformation, lean product transformation and strengthening product efficiency, while further enhancing the irreplaceable key capabilities within the Volkswagen system. needs to maintain close communication with suppliers around the 8 planned models and the production target of 2 million vehicles. All departments of FAW-Volkswagen supply chain need to maintain close communication with suppliers to jointly overcome the difficulties in project launch. In early 2022, the epidemic that lasted for nearly two months disrupted the production order of FAW-Volkswagen and also suspended the production and supply of suppliers' parts. Fortunately, after two years of impact of the epidemic, FAW-Volkswagen Procurement has fully summarized the work experience in response to the epidemic and formulated three-step emergency measures: continuous monitoring of "identifying risks", rapid response to "grasping stocks", and alternative solutions to "seeking incremental volumes", successfully ensuring the supply of parts of FAW-Volkswagen produced by 116,000 vehicles in March 2022.
In the upstream of FAW-Volkswagen, there are more than 800 first-tier suppliers of materials production materials, more than 20,000 second-tier suppliers and more than 2,000 general material suppliers . Regarding the efficient operation of such a huge supplier system, Zhang Ming introduced that from 2021 to the present, based on the "point (change project), line (enterprise architecture), and surface (data governance)" digital transformation system established by the company, two key tasks of digital transformation have been carried out.
On the one hand, "10.0 Procurement Management " collaborates on organization, process, IT and related business personnel to organize, process, IT and related business personnel to sort out enterprise architecture and business reconstruction, identify core value scenarios, clarify and plan supply chain business, IT and data relationships, form a systematic change plan, and promote the comprehensive transformation of the supply chain.
On the other hand, "Procurement Digital Transformation Project" covers two major procurement areas: production materials and general materials. The digital and intelligent procurement of production materials is created to create a smart home system with parts BOM full life cycle management as the core and parts, suppliers and molds as three main lines. The digital platform for general materials procurement runs through the entire process of general materials from demand to contract contract contracting, realizing in-depth product management of general materials and full life cycle management of suppliers. In addition, in order to ensure the safety of the supply chain, FAW-Volkswagen has also adopted measures such as "dual core strategy", supply chain storage construction and other measures, and at the same time strengthens the control and assistance of the entire supplier chain, making the entire procurement system chain stronger.
is facing the future. Zhang Ming said: "By 2025, we will build a team of 300-400 core suppliers, and continue to carry out procurement work based on the principle of "high quality, high price and reliable and timely supply", and accelerate the promotion of independent and controllable in the entire supply ecosystem." One of the most important tasks of
procurement is to deal with many parts suppliers and improve the supply chain system. Let’s go to some excellent FAW-Volkswagen suppliers to see how they coexist and prosper with FAW-Volkswagen.
mutual assistance and win-win, promote digital collaborative ecological construction
Ministry was established in 1992. Currently, there are more than 60 factories and two nationally recognized laboratories around the world. It is a world-class supplier of exterior decorations with world competitiveness in electroplating, coating, anodizing and other processes.
As one of the top 100 global automotive parts suppliers, Minshi Group has established a long-term strategic cooperation relationship with FAW-Volkswagen, mainly providing trim, grille, C-pillar and other products for Speedan , ID series, Audi Q2L and other models. won the Excellent Supplier Quality Award in many FAW-Volkswagen production bases and also won the FAW-Volkswagen Excellent Supplier Award in 2020. At the same time, Minshi Group has also relied on cooperation to improve its production layout in the north and enhance its core competitiveness in North .
In recent years, Minshi has established a good cooperative relationship with suppliers through the full supply chain process digital management , and has achieved the first time to respond to customer needs. Minshi Group founder Qin Ronghua said: "In the past three years of epidemic, Minshi's global factories have not stopped their customers' production lines. In times of difficulty, it can especially reflect whether a company deserves long-term trust and cooperation."
entered the era of intelligent manufacturing, and Minshi Group has also achieved a leap in intelligent management with the help of FAW-Volkswagen's advanced quality management system . For example, through the Zhicaijia platform, we have built a real-time, cross-enterprise, and interconnected shared data platform, which has effectively ensured the lean development of production.
With the new four modernizations of automobiles, FAW-Volkswagen has continuously enriched the reserves of software suppliers, and the software value chain control and business model continue to iterate, which has also played a great role in promoting Minshi Group's digital collaborative ecological construction. Qin Ronghua believes that building a digital supply chain requires FAW-Volkswagen and parts manufacturers to carry out reforms simultaneously. Through digital transformation, when data is truly connected upstream and downstream, enterprises will have more results in global dynamic management.
For further cooperation with FAW-Volkswagen in the future, Qin Ronghua said that he hopes to strengthen coordination in many aspects, establish digital empowerment of future-oriented intelligent innovation, carry out automatic adaptation production without intervention, and achieve win-win development.
symbiotic development, establishing core competitive advantages through innovation
Yutian Guanjia was founded in 2004 and is committed to the design, research and development and production of automotive sunroofs. It is headquartered in Shanghai Qingpu , with six production bases and one R&D center. In 2021, Yutian Guanjia sold more than 2 million sunroofs, ranking second in the market share, accounting for 13.1%.
Yu Tianguanjia entered the FAW-Volkswagen system in 2010 and is the first private skylight enterprise supplier of FAW-Volkswagen. Yutian Guanjia is constantly strengthening cooperation with FAW-Volkswagen in the company's planning and layout, project development and epidemic supply guarantee. In 2020, the mass production of Xinbaolai sunroof broke the monopoly situation of foreign-funded enterprises in FAW-Volkswagen; In 2022, Yutian Guanjia overcame the difficulties of epidemic and chip shortage, and strongly cooperated with FAW-Volkswagen to ensure stable growth in production and sales, and won the FAW-Volkswagen "Cooperation Award", "Zhongxin Gathering Award" and "Excellent Supply Guarantee Award".
Since its establishment, Yu Tian Guanjia has participated in the simultaneous development, division of labor and cooperation of Volkswagen with the help of FAW-Volkswagen, and has accumulated a lot of experience. Yutian Guanjia also insists on innovation and has made outstanding contributions to enterprises reducing costs and accelerating localization.
With the new four modernizations of automobiles, the development of suppliers must keep up with the times and constantly adjust their own product structure and operation management concepts. In terms of product , Yutian Guanjia, as a FAW-Volkswagen sunroof supplier, is actively looking for breakthroughs in sunroof products, such as lightweight sunroofs and dimmable glass. In terms of operation and management, Yutian Guanjia follows the pace of FAW-Volkswagen's digital transformation, taking Germany's high standards and consistency requirements as the criterion to achieve continuous quality improvement and intelligent management in the production and management modules. For example, based on building the SAP system, secondary development is carried out based on its own actual situation, and the full business chain quality management system is implemented.
In the sincere cooperation between the two parties, Yu Tianguanjia not only gained a lot, but also created many value for FAW-Volkswagen. General Manager of Yutian Guanjia Wu Chaohui admitted that in the future, Yutian Guanjia will continue to optimize and innovate in product structure and product innovation with FAW-Volkswagen to further achieve symbiosis and win-win results.
mutual assistance to make more cars safer products
Junsheng Electronics was founded in 2004. It is a global top supplier of automotive electronics and automotive safety, committed to the research and development and manufacturing of intelligent driving, automobile safety, new energy system management, Internet of vehicles and high-end functional areas.
The highest quality is compliance . Shan Jinhui, Global Executive Vice President and President of China, introduced that it is rare for Junsheng Security to pass the supervision and certification of the US Department of Justice within two years. As a long-term partner of FAW-Volkswagen, Junsheng Safety has accumulated rich R&D results and technical reserves in the fields of automotive safety and other fields. Today, FAW-Volkswagen has become the core and largest customer of Junsheng Security, not only providing strong technical support, but also helping to build and improve its digital system and management capabilities, laying a solid foundation for its long-term development.
Under the conditions of multiple risks and challenges in the past three years, Junsheng Security has actively built a flat supply chain management system, continuously providing customers with safe and reliable intelligent and electrified technologies and services, effectively ensuring the stable operation of the industrial supply chain. Shan Jinhui said: "The development of our parts companies cannot be separated from the OEM. Otherwise, our products and technologies cannot be applied, and our work will be meaningless."
The top priority for enterprises is R&D, and it is necessary to establish a front-end R&D system. Shan Jinhui said that Junsheng Safety pays special attention to the construction of the R&D system and has formed unique advantages in product platform development, product lightweighting, and precision manufacturing.
In the fields of new energy and autonomous driving, Junsheng Safety has also discovered new opportunities. For example, the pyrotechnic high-voltage circuit breaker uses the fuse in the high-voltage battery pack with the past high-voltage battery pack to break the gunpowder in the airbag, and achieves the millisecond level to prevent power in the car.
Joinsheng's development is inseparable from many major mergers and acquisitions such as Puri, Bailid, and Takata. With the help of asset restructuring and technological inheritance and innovation, the industrialization process is realized. Similarly, the cooperation results of Junsheng Security and FAW-Volkswagen have also promoted the high-quality development of both parties and the entire supply chain.
efficient collaboration to build a "mesh" digital supply network
The Fortune 500 German company, Costal Group, was founded in 1912 and mainly provides a complete set of solutions such as automotive electrical systems, connectors and smart devices. Costal China was founded in 1995 and began to cooperate with FAW-Volkswagen a year later.
In terms of digital empowerment of supply network, Keshida believes that the key lies in relying on digital and intelligent technology and data to focus on moving from the traditional "chain" supply chain to the future "mesh" digital and intelligent supply network. Keshida Asia Executive Vice President Lei Yu mentioned, "We must include ourselves as part of FAW-Volkswagen's development and must do a good job in collaborative management. With the help of intelligent tools, we can improve rapid response and management capabilities and ensure the most efficient production and supply."
Keshida hopes that every vehicle we supply will become the first choice for each customer, bringing customers a better driving enjoyment. To this end, Keshida has always regarded R&D as a top priority. Costal has established three R&D centers around the world, Germany, the United States and China. Half of the 4,900 employees in Asia have engineers, and they have reserved sufficient talents for R&D work.
In terms of products, Keshida has also developed and produced a number of car-machine interconnection products, such as car charger , smart cockpit, ambient light module, etc., to adapt to the trend of intelligent and green travel.
Faced with the new four modernizations of automobiles, Lei Yu believes that the digital and intelligent automobile supply chain based on the mesh structure should have three core characteristics: transparency, collaboration and intelligence, and should also adapt to global market-oriented needs and collaborate and efficient global layout. In this regard, Keshida will innovate around smart energy and human-computer interaction in the future to create a new travel model for users.
Since its establishment in 1991, FAW-Volkswagen has always brought a beautiful travel experience to Chinese users with high-quality cars and services of international standards. At the same time, with the help of continuous local innovation, it has built a world-leading and powerful system capability in production, R&D, quality assurance, procurement and service. With excellent products and services, it has continuously driven the high-quality development of the entire upstream and downstream industrial chain of and promoted the industry to a new and upward trend. It can be foreseen that with the joint efforts of many automobile companies represented by FAW-Volkswagen, our dream of becoming a strong automobile country will eventually come true in the near future.
