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Before 2001, the parts and components supporting system for heavy trucks in China was very stable. The parts supply channels for the major heavy truck companies were relatively independent, and they were not purchased from other parts companies. Everyone was safe; but then, with the market With the intensification of competition and the individuation of user needs, the parts supply systems of heavy truck manufacturers have been disrupted, resulting in the diversification of heavy truck parts. Diversified performance of heavy-duty truck components The diversification of heavy-duty truck components is mainly reflected in the increase in the number of core components (engines, transmissions, axles, etc.) that are matched by heavy-duty trucks in the same heavy-duty truck company. Parts come from different product platforms, so this diversification has the same features in terms of technical level, performance, specifications and price.
Diversified background of heavy truck parts
The occurrence of any event is not accidental, but it is the inevitable result of the development of the event to a certain stage. Of course, the diversification of parts and components of heavy trucks is no exception, and its emergence and development also have certain deep-seated reasons.
1. market background
In recent years, the competition in the heavy-duty truck market has become increasingly fierce. The main manifestations are: On the one hand, the number of heavy-duty truck companies participating in the competition has gradually increased. There are foreign competitors and new domestic competitors. On the other hand, users have More choices and scopes are more and more critical, which makes heavy truck companies have to speed up product updates and development.
The increasingly fierce and cruel market competition has made some existing heavy-duty truck companies unable to meet the market demand for parts and components. As a result, the market competitiveness of the entire vehicle companies has been reduced and the competitive pressures have become greater. As a result, they have turned their attention. Turned to the competitor's parts supply system.
Some new players in the heavy-duty truck industry have also played a role in fueling the change in the parts supply system. These companies are trying to speed up their entry into the market and reduce their own cost of parts procurement. The selection cost, auditing cost and management cost of the business, etc.). In order to be able to follow the market leader (technical leader or market leader), parts are purchased from the leader's parts supply system. From the perspective of the operating performance of the relevant heavy truck companies, this component procurement model is relatively successful.
At present, developing products using a competitor's parts system seems to have become one of the main directions for product development of heavy truck companies.
2. technical background
First of all, some heavy-duty truck companies lag behind in their own parts and components products, which has affected the competitiveness of the entire vehicle market that matches these parts and components to a large extent, and the company has no new alternative parts products. It is obligatory to purchase from the competitor's parts supply system in order to resolve the urgent need.
Second, heavy truck companies lack the necessary forward-looking planning and funding for component technologies. For heavy-duty trucks, the development cycle of their core components (diesel, transmissions, rear axles, etc.) is relatively long. In particular, the development of a new product platform has a huge investment in capital, which requires heavy trucks. The company must have a business vision and keen market insight from its predecessors to plan its products for several years. Unfortunately, domestic heavy truck companies generally do not do well in this area.
Again, new entrants in the heavy truck industry have not had their own parts supply systems for a period of time since entering the industry, and they have not accumulated or invested in technology. There are two ways to purchase parts and components - zero for competitors. Parts support system and independent parts product suppliers. Because there is a certain degree of instability in the parts and components of the procurement competition (for example, competitors use administrative means to reduce the supply of parts), new entrants generally choose multiple suppliers, which leads to the diversification of parts.
The consequences of diversification of heavy truck parts
Heavy truck companies adopt product diversification strategies and market strategies to undoubtedly quench their thirst. Although heavy truck companies can meet consumer demand in a short period of time and thus achieve sales growth, it is not conducive to the long-term development of the company and cannot fundamentally improve the market competitiveness of the company. The main reason is as follows.
1. Increased product development costs
The truck product itself is a large system that requires a good match between the various components. Only vehicles with well-matched parts can achieve better performance, especially for heavy-duty trucks. Matching new components often requires heavy-duty truck manufacturers to design new development solutions for heavy-duty trucks. Heavy-duty trucks also require multiple rounds of component-to-match matching tests, as well as multiple vehicle trials and performance verifications. All of these require heavy truck companies to invest in human, material and financial resources. They also require a certain amount of time and require companies to pay more for product development costs than ever before.
2. High product development risk
The risk of product development is mainly caused by the failure of product development. The following three reasons may lead to the failure of the product development process for heavy truck companies.
Failure of product performance. In the product development process, a good match must be achieved between the various parts and components to achieve the design goals of the heavy truck in terms of dynamic performance, reliability, economic performance, and cargo carrying performance. Improper matching of parts and components will affect the reliability and economy of the vehicle. Diversification of components will greatly increase the probability of improper matching between parts of heavy trucks. As a result, heavy truck companies are in the process of product development. The risk of product development failure caused by product performance reasons is greatly increased.
Failure of product mass production. As mentioned earlier, some heavy-duty truck companies directly purchase competitor parts. After the entire vehicle is mass-produced, parts supply is often easily restricted by competitors. Once this happens, the entire vehicle's production capacity will be greatly affected. The company's R & D expenses, production preparation costs, mass production costs, and product promotion expenses, etc. on the relevant models are all in jeopardy. At this time, the loss of the company will be very large.
Heavy trucks failed after they hit the market. After heavy truck products are put on the market, due to many factors (such as price, reliability, carrying capacity, etc.), the products are not welcomed by the market, the sales volume does not break, and the investment in product development is also lost.
3. Some companies are easily subject to people
Heavy truck companies adopt diversified component strategies to meet market demand. However, the current situation is precisely that certain components are scarce resources in the market. The reasons for this scarcity are: First, the owner of the resources is Competitors, who obtain resources from competitors, will be subject to different levels of restrictions from their competitors. Second, the resource providers themselves have limited production capacity.
Scarce parts and resources often increase the company’s procurement costs, because the prices of scarce parts are often high, and obviously know that high prices and procurement, become a helpless move; so these heavy truck companies will be subject to varying degrees of control Parts suppliers.
On the other hand, some heavy truck companies purchase competitor's spare parts resources to develop, produce and sell products similar to their competitors. Once competitors take some marketing measures to counterattack, they will be passively beaten. Lack of initiative in marketing, ultimately subject to their own competitors.
4. After-sales service system will encounter unprecedented challenges
Financial and accessories management challenges. New problems will arise in the procurement and management of accessories for service systems. The diversification of spare parts means that there is an increase in the types of accessories that need to be stocked in the service system. With a constant reserve of each accessory, the overall reserve of accessories must increase. At the same time, heavy truck companies generally require service systems. In order to purchase accessories in full payment, the funds used by the service system increase and the turnover of funds slows down, resulting in a corresponding decrease in the profitability of the service system.
The management of service system accessories also faces new difficulties. The management of accessories mainly involves the procurement, acceptance, storage, transportation and sales of accessories. With the addition of new parts and components, the workload of service system parts management has increased. The actual situation is often that the entire vehicle company adds a new component, and the workload of the service system is not a simple increase, but a breakthrough increase. This breakthrough increase cannot be solved simply by adding personnel. It requires the service system to be familiar with the parts and components and to be familiar with the parts. It also needs to be familiar with the differences in parts between different technology states. This requires a process. .
Service technology challenges. The service system faces technical bottlenecks. With the addition of new parts and components, the service system will need to be familiarized with new parts related technologies, failure modes, and matching conditions on the entire vehicle, and on the basis of familiarity, we will familiarize ourselves with the after-sales of new parts and components at the fastest speed. Service work. This is undoubtedly an increase in workload and service pressure for the service system. It takes a certain amount of time for the service system to become familiar with the new parts. Under normal circumstances, the user's requirements for services are often fast and effective (otherwise they affect their own profits). The difference in time and effect is very easy to cause the user's dissatisfaction, and the ultimate victim is the heavy truck company.
Service process challenges. The increase in the number of zero-year-old parts and the increase in the number of parts manufacturers will increase the communication process between the service system and parts manufacturers, the heavy truck factory and the parts factory, and require a process in which the business processes between the parties are adapted to each other; There will be a certain period of running-in period, which is mainly reflected in the running-in between the service station and the truck company, the running-in between the service station and the new parts company, and the running-in between the truck company and the new parts company. The emergence of the run-in period will affect the service provided by the heavy truck manufacturers and their service systems to the users and affect the user's satisfaction.