Yuchai proposed market orientation and strategic alliance in 2011

On December 12, 2010, Yuchai's 2010 Supplier Conference was held in Kunming, Spring City. More than 600 parts and components suppliers from around the country gathered in Kunming to discuss the “best supply chain in the industry” plan.

Yuchai Machinery 2010 Supplier Conference
Yuchai Machinery 2010 Supplier Conference

In 2010, Yuchai adhered to the business principle of “continuing training, maintaining goals, and building stamina” and continued to improve the management level. With the cooperation of all Yuchai people and suppliers, Yuchai not only achieved its sales target in advance, but also maintained continuous growth in all market segments. Among them, the conventional bus maintained 56% and the medium bus market maintained over 74%. In addition to the market share, the proportion of the heavy truck market has increased to 9%, and Yuchai’s market competitiveness has steadily increased. 2011 is the first year of Yuchai’s “Twelfth Five-Year Plan”. In the next five years, Yuchai will make every effort to build one hundred billion enterprises. As one of the core competitiveness of the company, the level of product supply chain upgrade is very important.

Yu Ping, chairman of Yuchai Machinery Co., Ltd., affirmed the achievements of the procurement and supply work in the past year. He said, first of all, the concept of procurement has been transformed, and fairness, fairness, and openness have become the criteria and direction of work for each procurement staff. Second, a mechanism for simultaneous development with suppliers has been established, and cooperation with suppliers has become closer; The core competitiveness of the chain has been comprehensively improved, and the supplier's product quality has steadily increased. Junping pointed out that “creating the best supply chain in the industry” is the need for Yuchai to develop and survive in the “Twelfth Five-Year Plan” period and even longer. “We hope all suppliers will firmly believe that Yuchai and its suppliers are always in a single interest. The community must be full of confidence in face of the severe market situation in the future, focus on product quality, and jointly create engine products. In order to create the best supply chain, Junping advocated the establishment of a supplier alliance. We should establish a strategic alliance for common development based on the principle of “win-win situation, information sharing, joint development, management mutual assistance, risk sharing, capital operation, front-end service, and cultural co-building” to create close relationships among suppliers. The cooperative relationship achieves harmonious development and mutual benefit. Members of the strategic alliance should have: First, compatibility, alliance members have certain compatibility with Yuchai in terms of strategy, production, sales, finance, corporate culture, etc.; second, complementarity, and the medium and long-term development capability of the members can be developed with Yuchai. Complementary products, reliable products, controllable costs, and competitiveness; Third, with a sense of synchronization, strategic alliance members agree with the strategic objectives of the alliance planning, under the conditions of mutual benefit to ensure Yuchai resources priority. The establishment of a supplier alliance will eliminate the arbitrariness of supplier development, ensure the rights and interests of suppliers, and improve the quality of suppliers' products, so as to promote the improvement of Yuchai's product quality and achieve a harmonious and win-win situation.

The specific requirements put forward by Li Tiansheng, general manager of Yuchai, at the meeting. He said that first, it should strengthen confidence, work together, and work hand in hand with Yuchai; second, we must urgently prepare to ensure production, guarantee assembly requirements for this month and the peak season of 2011; and third, we must actively promote strategic cooperation. On the basis of the strategic alliance concept framework put forward by the chairman of the board of directors, the development of the cooperation program is to be carried out; the fourth is to be stably improved, harmonious and highly efficient, and the opinions and suggestions put forward by the supplier must be carefully sorted out, and supervision must be strengthened. Yuchai's harmony and close cooperation with suppliers.

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