Congratulation To the Opening of the 1 st EIPM Asia Pacific Round Table Conference!!

Transcription

1 1 Congratulation To the Opening of the 1 st EIPM Asia Pacific Round Table Conference!! From ZHANG Shengli The first Chinese MBA Student of EIPM in 1992

2 2

3 3

4 4 Mr.ZHANG Shengli ( Victor ) - ZHANG SHENGLI, full time MBA student of EIPM in work for SEW group of Germany and live in Singapore in move back China and start SEW China operation in career development in SEW from sales office manager, sales director, operation deputy general manager, General Manager for whole China operation. - In ten years time lead SEW business developed from EUR5million in 1997 to EUR170million in 2005 with 7 plants and 2000 employee in China

5 5 Evolution of Purchasing Professional in China over last 10 years - The homework Mr.Bernard Gracia assign to me is too big topic to talk about in a short time - It is a great pleasure for me to share my 10 year s experience with you for how to run a European invested manufacturing company successfully in China. - With many years working as sales director maybe my opinion about What and how the purchasing people doing in China is also interesting to you!

6 6 Purchasing concept In old days or in old mind in China - in the old central planning system there is no purchasing management in most of the Chinese companies, only supplying - no professional knowledge needed every body can do it - it is easy to spend money than earning money from sales - purchasing skill is indicating by how to cutting price by sharp knife

7 7 Purchasing is widely accepted being one of the most important professionalism in business life today in China - Traditional Chinese business culture support the mordent purchasing philosophy: win-win, strategic partnership - Young generation are good educated - Professional purchasing training become widely welcomed - Very strong influence come from international players in China - China become part of the world - Intensive competition in sales push the management to pay more attention in purchasing for quality, delivery reliability, service and cost saving

8 8 Case Study: Purchasing Practice in SEW-EURODRIVE China - Development of SEW-EURODRIVE in China - Purchasing Management with SEW China - Buying power and Purchasing policy - Purchasing personal management - Supplier management - Difficulties and challenges - Task and opportunity for EIPM - Questions and Comments

9 SEW Group, Germany Family owned company found in 1931, the head office located in Bruchsal, Germany Market leader in production of all types of gear box, electrical motors and frequency inverter Wholly-owned 9 manufacturing plants, respectively located in Germany, France, Finland, U.S., Brazil and China 56 assembly plants covered almost all the industrial Countries With group turnover of EUR1.35billion in 2005 Total employee more than 10,000 worldwide in 2005

10 10 SEW Germany Graben plant

11 11 SEW Product Range - geared motor

12 SEW Product Range Industrial gear box 12

13 SEW Product Range- electronic inverter

14 14 SEW - in China 2005 Sales of 2005: EUR 170 million Employees in China : 1800 Manufacturing Center Tianjin, Suzhou Assembly Plant Tianjin, Suzhou, Guangzhou, Shenyang Sales Offices - 2 branch companies, 30 sales offices nanning

15 15 SEW in China SEW-EURODRIVE (CHINA) HOLDING CO.,LTD MD: Mr.T.S.Bek DMD:victor ZHANG (shengli) SEW-EURODRIVE (TIANJIN) CO.,LTD GM: victor ZHANG SEW-EURODRIVE (SUZHOU) CO.,LTD GM: victor ZHANG SEW-EURODRIVE (GUANGZHOU) CO.,LTD GM: victor ZHANG SEW-EURODRIVE (SHENYANG) CO.,LTD GM: victor ZHANG SEW-PRECISION GEARS (TIANJIN) CO.,LTD Under construction GM: victor ZHANG SEW-INDUSTRIAL GEARS(TIANJIN) Co.,LTD SEW-MOTOR (SUZHOU) CO.,LTD GM: victor ZAHNG SEW-INDUSTRIAL PRODUCTS(TIANJIN) Co.,LTD

16 16 SEW-Tianjin

17 17 SEW- Tianjin Phase II

18 18 SEW-Suzhou

19 19 Buying Power and Purchasing Policy - Purchasing value for materials and components in 2005 more than EUR90million, above 50% of sales turnover - International buying value EUR35million, 40% of total purchasing

20 20 Buying Power and Purchasing Policy - Investment for machinery and equipment valued EUR50 millions in last three years - Subcontracting for service valued RMB50millions annually

21 21 Buying Power and Purchasing Policy - Centralized purchasing management for all important material and equipment handled by head office in Tianjin - Remain two or three suppliers for regular buying of important items - Select supplier by issuing tender/bid - Evaluate equally for quality, service and price - All purchasing process runs by SAP/R3 system on line record and monitoring - Double check and supervising for daily buying work - Adjust purchasing policy according to supplying source situation especially for raw material - Purchasing department report to General manager

22 22 Supplier Management - Quality is on the top priority to chose supplier - Give training and assistance to meet our quality requirement to local supplier or subcontractor - Allow supplier to make reasonable margin - Develop long term commitment with supplier - Keep in mind there is no permanent partner, business is business

23 23 Supplier Management - Win-win relationship: Buy from our customer - If you can find two qualified suppliers, do not simply go for single source supplier - Supplier evaluation organized in every year - When the supplier has developed very fast, monitor the delivery and service - For International suppliers, no big room for negotiation about delivery and price. Making everything standard

24 24 Difficulties and Challenges - The fast growth of Chinese economy make the country facing shortage of everything ( electricity, coal mining, petrol, steel and cement etc). what the purchasing management should do? - China already is an open market, the price fluctuation in international market ( for example, oil price ) make the purchaser nothing to say to the supplier - Need long time to train the local supplier to meet and maintain SEW quality - Buying from local private business, state owned company compare to buying from international market facing different difficulties

25 25 Difficulties and Challenges - More intensive competition in sales bring more pressure to purchasing: Spending less to buy the best quality with excellent service - The purchasing team need professional training - Not easy to find experienced purchaser - Keep the purchasing team stable

26 26 Task and opportunity for EIPM - Purchasing management level are very much different among companies in China - The economic and social development in China bring unique opportunity to international education institute - Very happy to see Mr.Bernard Gracia in China, one of the most hot and amazing places in the world today

27 27 EIPM HAVE A GREAT FUTURE IN CHINA, ALL THE BEST TO EIPM!!

28 28 Questions and Comments

29 29 Thank You