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2010, Five Major Risks Facing The Auto Parts Business by sgbvdf asga





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2010, Five Major Risks Facing The Auto Parts Business by
Article Posted: 09/02/2010
Article Views: 92
Articles Written: 2044
Word Count: 668
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2010, Five Major Risks Facing The Auto Parts Business


 
Business,Business News,Business Opportunities
Equipment manufacturing industry is the economic development and the construction of basic industry of national defense, while the mechanical parts and equipment manufacturing industry is the foundation and core, and invigorate the equipment manufacturing industry, must not overlook the revitalization and parts manufacturing development.

Revitalization of parts manufacturing, on the one hand the technical innovation, improve technical level, on the other hand needs to strengthen risk control, standardize corporate governance, technology and management of the synergy of two wheels continue to push forward parts manufacturing development.

Parts enterprises face the risk Five

Mechanical parts manufacturing is a typical discrete manufacturing companies. Although its products in the host device may be at the core components, technically demanding, but in a subordinate position in the market chain, is the host Supporting Enterprise, so its discrete manufacturing features more evident, competition in the market risks and difficulties are more prominent.

The first is the risk decision-making. Parts manufacturers are facing is the host companies, not end users, so the changing needs of the market through the main business of the filter, reflected in the slower parts enterprises are often half a beat, and the macroeconomic situation in recent years, raw material prices have jumped by large parts enterprises put forward to the market early warning, rapid response, efficient decision-making, effectively capture the requirements of business opportunities, bringing decision-making mechanism and market opportunities can meet the challenge.

Second Marketing Risk. Parts manufacturers often produce a host components (such as Engine , Gear Boxes, bearings, etc.), so enterprises to develop, there must be a huge customer base, including large multinational corporations to small individual users. Customers will result in products of different objects Sell Model diversification, there are some export enterprises both domestic; existing orders another warehouse-style sales sales; there with the OEMs of the zero inventory sales and cash sales, credit sales, and so on. Target customers and marketing model diversity, will require that parts manufacturers have a very flexible marketing organization system, the availability of such a marketing capacity to respond to numerous customer demand, is parts enterprises have to face the question on the exam.

Third, supply risk. Parts manufacturers in the market reflects the risk of marketing to the internal organization of production, they produced a product support area of wide varieties of wide coverage, multi-product model, and users scattered, relatively small demand for a single user, "low-volume, multi- species, inserting frequent "feature, giving the production organization of parts made high demands, whether scientific and rational organization of production, in a timely manner to protect the supply of stock under the premise of effectively preventing the backlog of parts and components business is every day encounter problems.

Fourth, quality risk. Parts manufacturers are all products of intermediate products, as OEMs are supporting the Chinese market specific OEMs strong position, resulting in supporting the vulnerable in many parts enterprises, and enterprises because of the barriers to entry components are relatively low, parts intensified competition among enterprises, the OEMs have introduced more stringent policy, therefore. Caught in the competition to survive, to the parts the quality of products and services to a higher requirement, can offer high quality products to market and quality services, to become the key issue of business survival.

Fifth is of benefit and risk. The past few years due to rising raw material prices, lower prices and enterprise host competition among the same industry product prices caused by falling rising labor costs, triple extrusion, so that the machinery parts manufacturers product gross margins remained low, the more profit and more narrow, whether the premise of guaranteeing quality fully tapping the potential, reduce costs, become an important channel for enterprises to obtain economic benefits.

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