Four ways to better manage the auto supply chain

• Source: Gasgoo.com
• [08:06 September 25 2009]
• Comments

Gasgoo.com: The Japanese, European and American automakers all have their own way in supply chain management.

What’s the best learning objective for the Chinese local automakers to improve supply chain management? Should it be the Japanese way?

Tao Lin: The Chinese automakers do have their advantage in choosing all the good things from all companies. There are strengths and weaknesses in every practice, Japanese, American or European.

The Chinese can draw the advantages and strengths from these people. And managing and integrating these things to the Chinese culture, the Chinese mentality to develop a more Chinese way. I don’t think they should become the Japanese, the American or the European.

There should be a Chinese way of working and managing things as well. What exactly it should be, I don’t know, but we should find it out in the few years.

Gasgoo.com: Many people regard the Japanese way as the best way.

Tao Lin: I think it is one of the most efficient ways.

Gasgoo.com: What might be the disadvantages of the Japanese supply chain management system?

Tao Lin: It can give people the impression that their cars are cheaply made, especially in the eyes of Americans and some Europeans.

Japanese cars are cheap and efficient, but at the same time, it’s true to certain degree, the materials they’ve used are lighter and cheaper, and they focus a lot on cost efficiency, and that sort of gives people the impression that their cars are cheap to buy and their cars are a cheap version.

But on the other hand, if you look at the American cars, most people know that the American cars are not of the highest quality, but they can be most robust, because they can be big, they are heavy, they use a lot of very enduring material on the cars, and some people may prefer that.

Gasgoo.com: How has the American supply chain management system changed after they’ve been learning from the Japanese way?

Tao Lin: To a certain degree, the traditional American way is still very much imbedded into their practice and way of thinking, although they have tried and are still trying to make a lot of changes.

And they’ve realized that they have to make the changes, but that’s not really an overnight thing.

Gasgoo.com: There are too many things in the field of supply chain management that the China homegrown automakers should learn, such as inventory management, supply chain risk aversion. Can you give them some suggestion on what should they learn first?

Tao Lin: I think a few things they have been learning from the Japanese and Americans in their early stages in their early days of managing suppliers. Logistics is definitely one of them, supplier relationship a lot of things can be based on.