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Why is supply chain remodeling called a new opportunity by BMW Brilliance?

Before the outbreak, the world was full of "I want it now!" Consumers.

Only in the first half year after the outbreak appeared, did the topics of global supply chain diversification and transformation occupy an increasingly important position.

according to Harvard business review (Harvard? Business? Review), manufacturers in dozens of industries have to face the impact of the epidemic on their supply chains.

"Unfortunately, many companies are facing a supply crisis, which stems from weaknesses in their procurement strategies, which could have been corrected years ago." In an article, people in the industry briefly wrote that a more flexible supply chain is needed.

under the epidemic situation, as the automobile industry with a huge supply chain, the "double" uncertainty of the supply side and the demand side has brought unprecedented challenges to the automobile supply chain. Therefore, with the frequent occurrence of "Black Swan" incidents and the coexistence of anti-globalization and re-globalization, it has become an irreversible trend that the automobile industry must reshape its supply chain and ensure the safety and diversification of its own supply chain system.

There is no doubt that the whole automobile industry chain is facing new challenges and changes, from OEM to suppliers, to related infrastructure providers and service providers. "The automotive industry is feeling the reshaping of the automotive supply chain." At the media visit of BMW Brilliance suppliers in 22, Dr. Wei Lande, President and CEO of BMW Brilliance Automobile Co., Ltd. also admitted frankly.

But as Churchill said, "Don't waste a crisis." Every crisis hides opportunities, and the bigger the crisis, the greater the opportunities.

*** Overcoming difficulties, actively investing in the resumption of production

"Wuhan was closed on January 23, and a car company in Wuhan began to resume work on March 11, producing the first batch of 2 cars, which shocked the world. If there is no supply chain and logistics cooperation, this is impossible. "

There is no doubt that this shows that China's automobile industry can quickly recover its production capacity and customization ability under the influence of the epidemic, and it also represents the advantages of China's manufacturing industry.

indeed, China has withstood the pressure in the stress test of the supply chain and logistics industry this year. At the same time, the United States, the European Union, Southeast Asian countries, Japan and South Korea are also under this pressure, but it is obvious that China's logistics and supply chain capabilities and potential have been greatly verified under the background of the impact.

In the face of a series of arduous challenges, BMW Brilliance, with its perfect sustainable supply chain management system, joined hands with its supplier partners to face the pressure and quickly resume work and production.

For most people in China, the concern about the epidemic may have started from the closure of Wuhan. However, for BMW Brilliance and BMW Brilliance chassis bridge assembly supplier-Bentele Automotive System (Shenyang) Co., Ltd. (hereinafter referred to as Bentele Automobile), the "epidemic" actually started earlier.

"At the beginning of the epidemic, due to insufficient production capacity, there was a certain shortage of materials, but then we launched global support and actively contacted the OEM to coordinate with the domestic government, which enabled us to quickly restore production capacity to a certain extent." Shi Hong, executive vice president of Bentele Automotive Asia Pacific, admitted in an interview that especially in Wuhan, which was the most seriously affected area, Shenyang, Bentele immediately mobilized transport trucks to transport all the inventory of Wuhan suppliers from Hubei to Shenyang before the city was closed.

However, how to ensure the factory to resume production and work quickly after the Spring Festival has become the biggest problem faced by BMW Brilliance and many suppliers.

During this period, BMW Brilliance kept close communication with suppliers. According to the checklist of supplier production management in special period, more than 27 check and review standards, such as inventory reserve, relocation of production lines in different places, global resource allocation capacity and replacement parts audit, were used to assess the production capacity of more than 2 suppliers during the epidemic period, so as to help suppliers quickly resume production.

Take Bentele Automobile as an example. When BMW Brilliance resumed production on February 17th, its production capacity had recovered to 95%. However, just as BMW Brilliance joined hands with national suppliers to gradually and steadily resume work and production, the foreign epidemic broke out in an all-round way. At this time, BMW Brilliance's perfect supply chain management system once again played an important role.

"During the epidemic, due to an epidemic infection case on the cargo ship where the Indian supplier's goods are located, it is expected to stay in Singapore for 21 days. After learning the situation, we urgently contacted the Indian supplier to start the alternative plan, and urgently reissued a batch of goods by air to ensure product delivery. " Shi Hong recalled. Through the perfect supply chain management system, the automobile production capacity in Bentele has recovered to nearly 1%, which can meet the needs of customers.

In addition to Bentele Auto, BMW Brilliance has helped more than 2 suppliers to complete global resource allocation by virtue of its own advantages. By deploying production in different places, communicating parts replacement audit and flexibly adjusting logistics schemes, it has strengthened safety stock to ensure stable supply.

In this regard, Wei Lande believes that BMW Brilliance shares the risk with the supplier * * * with practical support actions to help it quickly adjust its status in the epidemic and restore stable production and supply.

There is no doubt that the continuous fermentation of the epidemic has seriously affected the normal operation of the automobile industry in China. However, it is precisely because of the automobile manufacturers, including BMW Brilliance, that they not only give their money to each other in terms of production, supply and technical support, but also give the greatest support to suppliers in terms of epidemic prevention materials and capital operation, helping some local suppliers to ease the operational pressure.

to a certain extent, these measures have also provided strong support for the overall recovery and sustained and stable development of China's automobile industry, highlighted the strong resilience and resilience of China's automobile industry chain, and led the global automobile industry to regain confidence and get out of the haze.

How to build a sustainable supply chain for multinational enterprises

The global industrial supply chain system, including the automobile industry, has suffered unprecedented setbacks and exposed the global fragile supply chain shortcomings due to factors such as shutdown and suspension of production and stagnation or extension of global trade caused by the epidemic.

Recently, Harvard Business Review pointed out in a special article that after the earthquake and tsunami in Fukushima, Japan in March 211, many multinational companies found hidden weaknesses in the supply chain, and after these weaknesses led to the loss of income and even market value, these cross-border enterprises also took many countermeasures.

And this epidemic also exposed the problems caused by, for example, over-centralized and opaque supply chain. Faced with such problems, whether the global supply chain will be "de-China" has also become a global hot topic.

But it is really worth thinking about the dependence of manufacturing industry on Asia and even China.

The data shows that more than 5% of the global manufacturing output comes from Asia, and in 219, the manufacturing GDP of Asia exceeded 7.1 trillion US dollars, of which the three pillars were China (4.1 trillion US dollars, accounting for 58.3% of Asia); Japan ($1 trillion, 14.7%); And South Korea ($5 billion, 6.3%).

in early March, more than 36, kinds of spare parts, more than 9, factories and more than 1,5 unique primary/secondary suppliers were affected by the epidemic in China. In South Korea, Japan and Italy, thousands of parts, factories and unique primary/secondary suppliers are affected respectively.

However, economic globalization is an irreversible historical trend. The global industrial chain supply chain has formed a close relationship of "you have me and I have you", and the trend of industrial transformation, innovation and open cooperation is unstoppable. As one of the core nodes and key links in the global supply chain, China is of great significance to the security and stability of the global supply chain.

For Lingyun, the supplier of battery lower case of BMW Brilliance, Shenyang Lingyun Wadashav Automobile Industry Technology Co., Ltd. (hereinafter referred to as Lingyun), it is an embodiment of open cooperation to provide battery lower case for luxury car brands for the first time through the effective way of continuous self-improvement and the acquisition of Wadashav in Germany.

For BMW Brilliance, finding potential local suppliers to help suppliers enhance their competitive strength and step onto the world stage is a powerful practice of "in China, for China, for the world" in brand promise.

"Due to the high-quality development of China's production technology, more and more excellent local suppliers have the ability to provide parts that meet our high-quality needs. At the same time, BMW Brilliance is also vigorously supporting the development of local suppliers. " Wei Lande said in an interview with the media that in this series of concerted efforts, the level of local suppliers in China has been gradually improved, and even the high-quality development of auto parts industry in China has been promoted.

However, Dr. Wei Lande also admitted that some labor-intensive industries will be transferred to Southeast Asia in the future, but China, as a very plastic market, has various potentials, especially for BMW Brilliance. With the continuous improvement of localization level, local suppliers are bound to play more roles.

as one of the largest automobile markets in the world, China is also benefiting from the efficient and reasonable global layout of more and more multinational companies, and these multinational companies are gradually finding a sense of rhythm in the supply chain reform in the post-epidemic era.

Taking BMW Brilliance as an example, in recent years, a complete supplier sustainable management system has been gradually established, and the supplier's anti-risk ability has been assessed from four aspects: environmental health and safety (EHS), corporate social responsibility, carbon emissions and circular economy, and financial risk management, so as to empower suppliers to form a more resilient operation mode and integrate the concept of sustainable development into all aspects of the whole value chain from top to bottom, thereby gradually improving the anti-risk ability of the industrial chain and helping the development and transformation of China's automobile supply chain.

Thanks to the continuous improvement of the supply chain system and the "China, China" brand promise, BMW Group has performed strongly in the China market. In the first three quarters of 22, it delivered 559,681 BMW and MINI brand cars in the China market, an increase of 6.4% over the same period of last year, achieving sustained business growth, while continuing to promote a strong product offensive in China.

However, both BMW Brilliance and other manufacturers must actively respond to global technological changes and changes in the industrial chain. How to realize the collaborative supply and production of the global industrial chain in a short time, and make the supply end and the demand end tend to be balanced, will also be doomed to be a bumpy road.

This article comes from the author of Chejia, car home, and does not represent car home's standpoint.