On December 12, Yuchai Machinery Supplier Conference 2010 was held in Kunming, bringing together over 600 representatives of some 300 parts suppliers from around the country for a discussion about building the best supply chain in the industry. Yuchai Chairman Yan Ping, General Manager Li Tiansheng, corporate leaders including Ning Xingyong, Liang Qingyan, Zhong Yuwei, Shen Jie, Qin Xiaohong, Yan Jie, Zhuo Bin, Li Qin and Chen Ningbin, as well as Fan Jiang, chairman of Yuchai Supplier Federation were present. Li presided over the conference.

Yan speaks at the conference

In 2010, Yuchai continuously increased management level with the business principle of continuing internal drills, securing objectives and gaining momentum. With the efforts of Yuchai staff and the close cooperation of suppliers, Yuchai accomplished the sales objective in advance, maintained continuous growth in market segments, secured a 56% market share in traditional superior large bus and an over 74% share in medium bus, and increased the proportion of heavy truck to 9%, thus sharpening competitiveness steadily. The year 2011 will mark the beginning of the Twelfth Five-Year Plan of Yuchai. In the coming five years, Yuchai will spare no efforts to build an enterprise with sales of RMB 100 billion. As one the core competitive edge of the enterprise, increasing the level of product supply chain is critical.

Li speaks at the conference

Yan spoke highly of the purchase and supply efforts over the year, saying the concept of purchase work was transformed, and equality, fairness and openness became the work criterion and direction of every purchase staff; the mechanism for growth with suppliers was established, and the cooperation with suppliers became closer; the core competitiveness of the supply chain was sharpened comprehensively, and suppliers product quality was increased steadily, noting that building the industrys best supply chain is the need for survival and development of Yuchai during the period of the Twelfth Five-Year Plan and even for a longer period, hoping that all suppliers should firmly believe that Yuchai and suppliers are always a community of interest, be more confident in the face of the future severe market situation, focus on product quality and jointly build fine engines. To build the best supply chain, Yan advocated building a supplier alliance, saying that a strategic alliance should be established based on common benefit, information sharing, joint development, management assistance, risk sharing, capital operation, forefront service and cultural construction to promote common development and form close partnerships between suppliers, thus accomplishing harmonious development, mutual benefit and win-win. Members of the alliance should be compatible with Yuchai in such aspects as strategy, manufacture, sale, finance and corporate culture; should supplement with Yuchai mutually in the capacity for medium & long-term development and be competitive in products and cost; and should identify themselves with the strategic objective and plan of the alliance and ensure the resource priority of Yuchai under the principles of reciprocity and mutual benefit. Establishment of the supplier alliance will eliminate the arbitrariness of supplier development, safeguard the rights and interests of suppliers and increase suppliers product quality, thus boosting Yuchais product quality and accomplishing harmony and win-win.

Conference scene

Li raised specific requirements, saying that suppliers should consolidate confidence, fulfill duties and make concerted efforts, and join hands with Yuchai; should make urgent preparations to ensure production and meet the assembly demands of peak seasons this month and next year; should actively advance strategic cooperation and work out cooperative plans based under the framework of the strategic alliance mapped out by Yan; should make steady, harmonious and efficient improvement, systemize suppliers opinions and suggestions, intensify supervision, make constant improvements by nodes, and solve problems as soon as possible to accomplish the harmonious and close cooperation between Yuchai and suppliers.

Corporate leaders such as Ning Xingyong, Zhong Yuwei and Liang Qingyan gave work reports, reports on corporate development planning and reports on parts quality. Fan Jiang, chairman of Yuchai Supplier Federation gave an annual work report of the federation.

Corporate leaders like Yan (left) presents awards to outstanding suppliers

The conference commended four probationary core suppliers including Beijing ASIMCO Tianwei Oil Pump & Nozzle Co., Ltd., Guilin Fuda Crankshaft Co., Ltd., Guangxi Jinchuang Parts Manufacturing Co., Ltd. and Ningbo Fulaiyin Automobile Parts Co., Ltd., as well as 21 outstanding suppliers including Bosch Automobile Diesel System Co., Ltd., ASIMCO Nanyue (Hengyang) Co., Ltd., Prestolite Electric (Beijing) Limited, ASIMCO Meilian Braking Systems (Langfang) Co., Ltd., Yuchai Huayuan Machinery (Yulin) Co., Ltd., Yulin Jinshida Electric Co., Ltd., Guilin Fuda Crankshaft Co., Ltd. and Guangxi Jinchuang Parts Manufacturing Co., Ltd. Corporate leaders like Yan and Li presented awards to the winners.

In the afternoon, four sessions were held on quality, product development, capacity construction and monopoly & remanufacturing business, at which Yuchai had in-depth discussion with suppliers on relevant matters.

(Song Yonggeng)