China produced over $30 billion worth of automotive and truck components in 2005, a figure expected to rise to nearly $60 billion by 2009. Within most automakers, truck and off- highway manufacturers, active China sourcing groups have already been established, either in purchasing or embedded as part of the company's local operations.

While many suppliers have chosen to go the joint venture route in setting up partnerships with local companies as a part of their China localization strategy and this option is often not the correct choice in procuring many of the more commoditized components that are readily available from many sources around the world.

Appropriately managed, sourcing from China results in high-quality parts that have a net 20 to 45 percent reduction on a total cost basis. Despite the emphasis on having dedicated resources in place to support China sourcing activities, there is often a significant discrepancy in terms of results being achieved.

Key success factors include: competence in change management; the ability to recognize key knowledge gaps for suppliers, who in many cases may be new to export markets; the identification and continuous monitoring of evolving supply market dynamics; the need to optimize logistics and align organizational metrics to meaningful outcomes; the need to distinguish between Chinese sourcing from multi-national off-shoots, as opposed to genuinely local suppliers; and, perhaps most important, the development of agreed standards and expectations.

The sourcing of key systems and components from China is a major part of the cost reduction and localization strategy of most leading global automakers.

Source:佚名