At the end of the year and the beginning of the year, it has always been the off-season of the market, and this month's bad weather, affected by the road, many large manufacturers of machinery industry production and sales are frequently rushed. What is the reason why Dongfeng Cummins reversed the trend and the production and sales volume soared? The author made contact with Dongfeng Cummins related personnel through telephone.
The first is the implementation of Dongfeng Cummins's strategy of diversifying its customer base and diversifying its market. Since 2006, Dongfeng Cummins has taken “diversification†as a strategic direction, in addition to vigorously supporting the Dongfeng vehicle manufacturers' engine supply, but also vigorously expanding the Dongfeng foreign market and non-vehicle market. At present, Dongfeng Cummins has reached strategic cooperation relationships with many OEMs such as Hualing, Yutong and Beiqi Foton, and has also achieved considerable development in the fields of construction machinery and generator sets. Dongfeng Cummins has positioned itself as a "strategic partner" with its relationship with the host manufacturers, and has conducted comprehensive and in-depth cooperation in R&D, manufacturing, and marketing.
Dongfeng Cummins's strength in the country's 3 electronic control machines is also an important reason for the production and sales volume to rise. In May 2007, Dongfeng Cummins announced that it has the ability to fully convert the production line to the country's 3 vertical, and at the same time started to help the vehicle. The "early care plan" for the transformation of manufacturers and end-users into the country's 3 electronic control provides full support for customers and end users from product manufacturing, development, sales, and service. With the further expansion of the sales scope of the National 3 Engine, the Dongfeng Cummins Market has obtained corresponding rewards, and it has become a proper meaning.
In fact, in addition to being in the right direction in marketing strategy and product strategy, and implementing it in place, Dongfeng Cummins has achieved high performance in the face of unexpected severe weather conditions and is also closely related to its ability to respond quickly to excellent program management.
Each manufacturer's supply chain consists of two parts: connecting upstream component suppliers and connecting downstream customers. For Dongfeng Cummins, accurate sales plans, reasonable spare parts inventory, and product inventory ensure a quick response in the event of a sudden situation, and the two ends of the supply chain are perfectly connected to each other, making it a unique solution to this severe weather. According to Zhang Yuhong, sales plan manager of Dongfeng Cummins, Dongfeng Cummins will consciously consider various factors when devising a sales plan. According to the customer's demand, the production plan will be issued in an appropriate proportion. Sometimes, more products will be produced than the customer's orders. In order to cope with temporary customer needs or shortages of parts due to bad weather; and when Dongfeng Cummins signs a purchase agreement with its own parts suppliers, it will also take into account unexpected conditions in advance and make reasonable arrangements. The volume again adds a layer of insurance for normal production under unexpected conditions. This will occupy part of the liquidity, but it guarantees the production schedule and product delivery time in the event of an emergency.
In terms of engine delivery, in order to more quickly respond to the needs of vehicle manufacturers, Dongfeng Cummins has also set up transit warehouses near major customer production plants and strengthened customer support, especially in the event of natural disasters such as heavy snowfall and floods. Under the circumstances, it has played a powerful role in improving the operational efficiency of the entire supply chain.
Efficient management and a well-planned delivery system are the guarantee that Dongfeng Cummins can quickly respond to customer needs and provide effective support to host manufacturers. In January 2008, Dongfeng Cummins was again selected as an outstanding supplier by Valin at the appreciation meeting of parts and components manufacturers held by Valin. In addition to close cooperation in R&D, manufacturing and marketing, the efficient cooperation between the two sides in the supply chain should also be the reason why Dongfeng Cummins won this honor. According to Liu Xiaoxing, general manager of Dongfeng Cummins, the relationship between engine manufacturers and vehicle manufacturers is not a simple trading relationship, but a strategic partnership based on long-term and stable cooperation.
Open up the upstream and downstream barriers of the industrial chain, establish a more integrated and efficient supply chain from the initial supplier to the end user, maximize the efficiency of the supply chain management operation, rapid response, which has become an international trend. In this blizzard that affected the whole country, Dongfeng Cummins adhered to this idea and played an effective role. And Dongfeng Cummins's logistics team's familiarity with road conditions and temporary variability also added points for rapid response. The highway is closed due to snow, and the national highway is taken away. If the national highway is blocked, ordinary highways are used. No matter what method is adopted, the purpose is only one: in the contracted time, the engine is sent to the assembly line of the vehicle manufacturer to ensure the entire vehicle. Manufacturers timely supply to users.
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