Success Stories
1. Supplier Pre-selection
The Survey Project of SW Supplier for German BOSCH Company
Bosch is a multinational company ranking 94th in the world. It is a leading global supplier in the industrial field of auto parts, electric tools and hydraulic pressure system, etc. on April 23,2007, Bosch entrusted SPX-CQ with the supplier survey in Southwest China in the field of mechanical manufacturing-plastic and metal processing sector. The survey started on April 28th and ended on June 18 th.
The executive vice president of corporate purchasing of Group, the director of Corporate Purchasing of China & Northeast Asia and the purchasing manager of international procurement China from Bosch Group visited pre-selected qualified suppliers during implementation of the survey project.
Project Purpose
a. Conduct an overall supplier survey in Southwest China in the field of machinery manufacturing-plastic processing and metal processing sector and single out the potential Chinese suppliers.
b. Explain Bosch's purchasing principle and criteria of supplier selection to potential suppliers so as to lay a good foundation for cooperation in future.
c. Provide information for drafting Bosch's strategy of supplier development in Southwest China in the coming 3 years
Project Achievements
a. SPX-CQ had a thorough searching of suppliers in Southwest China in the field of machinery manufacturing-plastic processing and metal processing sector and found 2000 suppliers in total. For those who meet the requirements of Bosch, via telephone contact, SPX-CQ verified their data and confirmed their cooperation desire with Bosch. Finally, a list of preselected qualified suppliers was submitted to Bosch.
b. After reviewing the suppliers' data provided by SPX-CQ, Bosch visited some Chongqing suppliers
c. The supplier data that Bosch got from other sources can all be found in the database of SPX-CQ. Bosch highly praised the SPX-CQ's procedures, ability and the quality of the supplier pre-selection service.
Mr. Thomas B. Wagner, executive vice president of corporate purchasing of Bosch Group visited pre-selected qualified suppliers.
2. Supplier Pre-selection & Supplier Conference
Honeywell Project of Supplier Pre-selection and 2007 Asia Supplier Conference
Honeywell International, one of the global Fortune 500 companies, is a $33 billion diversified technology and manufacturing global leader. With over a century of history, it serves customers worldwide with aerospace products and services, automation and control solutions, specialty materials, and transportation systems. Honeywell hosted its "2007 Asia Supplier Conference" from September 24th to 25th, 2007 in Chongqing, China, with all of Honeywell's four business groups in attendance.
On July 20th, 2007, Honeywell entrusted SPX-CQ with the supplier survey and pre-selection, supplier invitation and on-site management of the Conference. The project ended on September 25th.
The top management of Honeywell attended the Conference including:
Global Vice President, China CEO, Honeywell
Vice President of Sourcing, Automation and Control Solutions, Honeywell
Vice President of Sourcing Strategy, Aerospace, Honeywell
Vice President of Procurement, Asia Pacific, Corporate, Honeywell
Management Director of Supply Base Asia Pacific, Transportation Systems, Honeywell
Procurement Leader, Asia Pacific, Specialty Materials, Honeywell
Project Objectives
a. Conducting an overall supplier survey in China in the field of Aerospace, Automation and Control Solutions, Specialty Materials and Transportation Systems and shortlisting the potential Chinese suppliers.
b. Introducing Honeywell's purchasing principle and criteria of supplier selection to potential suppliers so as to lay a good foundation for cooperation in future.
c. Inviting the potential suppliers and the existing suppliers of Honeywell to attend the Conference.
d. Increasing Honeywell's volume of sourcing from the China market and promoting China as the most competitive supply and sourcing market in the world.
Project Achievements
a. SPX-CQ made a thorough searching of suppliers in China and found 2800 suppliers in total. For those who meet the requirements of Honeywell, via telephone contact, SPX-CQ verified their data and confirmed their cooperation desire with Honeywell. Finally, a list of pre-selected qualified suppliers was submitted to Honeywell.
b. After reviewing the suppliers' data provided by SPX-CQ, Honeywell selected part of the potential suppliers to attend the Conference.
c. 400 people in total, including 150 potential and existing suppliers (including those from U.S.A., Japan, Korea and other countries and areas), executives of Honeywell's four business groups, representatives from industrial development zones of some Chinese cities and Chongqing government, participated in the Conference.
d. The executives from Honeywell's Aerospace Business Group and Automation and Control Solutions Business Group showed their satisfaction about the suppliers' quality. Honeywell highly praised the SPX-CQ's procedures, ability and the quality of the supplier pre-selection and conference management.
Mr. Wu Jianong, Vice-Mayor of Chongqing, Mr. Tedjarati Shane, Global Vice President and China CEO of Honeywell, Ms. Zou Xiaoping, Ms. Josephine Su, Vice President of Procurement, Asia Pacific, Honeywell, Ms. Zou Xiaoping, Chairman, Chongqing Sub-council of China Council for the Promotion of International Trade and Mr. Wang Wei, Director of SPX-CQ at the 2007 Honeywell Asia Supplier Conference
2007 Honeywell Asia Supplier Conference.
3. Gap Analysis for Chongqing Auto Parts Suppliers
To respond to the growing demands for local products of some international automotive OEMs such as FORD, DCX from America, and Volkswagen from Germany in Western China, AIAG (Automotive Industry Action Group, America) and SPX-CQ started jointly the project of “Gap Analysis for Chongqing Auto Parts Suppliers” with the support of Chongqing Municipal Government. The project started on the 7th, November, 2006 and finished on the 15th December. The expert team with 12 experts from automotive OEMs such as FORD and DCX and well-known consultancy agencies such as UL, QAD and OMNEX, visited 29 Chongqing suppliers in the field of mechanical manufacturing-metal processing and plastic processing and made the gap analysis for these enterprises.
The project was hosted by General Director of Asia Pacific Affairs and Chief Representative in China of AIAG with the participation of Executive Director of AIAG, the Purchasing Director of FORD in China and General Manager or Business Director of the well-known consultancy agencies in China.
Project Aims:
a. To help Chongqing enterprises realize the gaps between what Chongqing auto parts enterprises are capable to deliver and the requirement of international buyers on logistic management, cost control, quality management and e-Commerce so as to provide guidance for enterprise’s improvement.
b. To provide grounds for decision-making for the involved parties who want to take necessary and effective actions to bridge the gaps and increase export.
c. To recommend qualified or potential suppliers for international OEMs.
d. To learn about the purchasing procedures of both North American and German auto makers and accumulate experiences in recommending Chongqing suppliers for international buyers more effectively.
e. To build up a replicable effective work mode for helping Chinese enterprises to enter into the global supply chain in the field of automotive.
Project Achievements:
a. A 100 pages report was provided to each of 6 sample companies. The report includes 26 items with total 326 questions covering cost control, logistic management, quality system, production management and ecommerce.
It serves the route map for improvement. All the other enterprises received an assessment report from the expert team.
b. The quality audit systems of FORD, DCX and VOLKSWAGEN were introduced to Chongqing suppliers and the enterprises as examples were set up.
c. 15 enterprises which meet purchasing requirements of international OEMs were singled out and gained initial recognition of buyers.
Mr. J. Scot Sharland, Executive Director of the Automotive Industry Action Group (AIAG), Mr. Yang Lin, Deputy Director of Chongqing Economic Commission, Mr. Qian Zhaogang, Deputy Director of Chongqing Foreign Trade and Economic Relations Commission and Ms. Lv Jingjian, Deputy Director of Chongqing Personnel Bureau at Signing Ceremony & Press Conference of the Gap Analysis of Chongqing Auto Parts Enterprises by AIAG
Launch Meeting of Gap Analysis for Chongqing Auto Suppliers
4. Supplier Training
The Supplier Training Sessions started on March 26th, 2007, aiming at helping Chongqing suppliers to upgrade their management and production so as to meet requirements of international buyers.
The trainers invited by SPX-CQ have rich experiences in practical purchasing departments and training. They are Mr. Nemsch, e former Purchasing Manager of VW, Mr. Gatnzer, Manager of Price Audit Management in Asia-Pacific Region of VW and Ms. Yu Lihong, audit expert and trainer of UL. The training lasted 5 full days for each session.
The General Manager of VDA-QMC in China gave a speech in first session.
Project Aims:
a. To introduce the purchasing procedures and specific requirements of important international OEMs and give suggestions on making improvement plan through summarizing of results of the gap analysis conducted by AIAG experts and case study of one Chongqing automotive parts supplier who participated in the gap analysis project.
b. To help the executives to understand the basic requirements of international buyers, thus making correct judgment on the enterprise’s situation.
c. To help local enterprises fully understand the quotation items of international OEMs, thus setting up their own reasonable quotation system through careful study of the quotation procedures of German Volkswagen.
Project Achievements:
a. Over 156 persons from 41 Chongqing enterprises attended the training.
b. The training provided practical guidance for those enterprises which have plans to enter into global supply chain and to perfect their own quality system by case study.
c. The training helped the local enterprises have better understanding of the principles and requirements of international OEMs for quotation, which in turn helped enterprises to make standardized and reasonable quotations, thus laying good foundation for conclusion of purchasing order.
Training: Quality Systems for Automotive Suppliers
Training: How to Understand and Meet the requirements of OEMs
5. Market Survey
Survey on the Overseas Direct Investment (ODI) Strategies of SW China Automotive Companies
In early 2007, Canadian Consulate – Chongqing under the instruction of Canadian government entrusted SPX-CQ to carry out the survey the overseas direct investment (ODI) strategies of SW China Automotive Companies. Searching the suppliers in SPX-CQ’s own database, SPX-CQ singled out 100 enterprises capable of overseas investment and carried out the survey by questionnaire and face-to-face interview. The survey questionnaire includes 19 questions, including: 1. The present situation of the company’s ODI; 2. Next five years ODI plan of the company, such as ODI Objectives, ODI Mode and Primary Target Market; 3.The ratio of present and future(estimated) income of ODI accounting for that of the company; 4. The facilitating factors and main constraints on ODI decision; 5. Capital sources for ODI. It only took 60 days from planning to submission of the final report. Canadian government is very satisfied with the survey results.
Project Aims:
The aim of the survey is to give a clear understanding about current overseas investment situation and strategies of SW China automotive companies as well as an overall picture of their motivation, facilitating factors and major obstacles when they make the decision of overseas investment. Therefore, the survey can be used as reference for the related decision makers making current policies, strategies and long-term strategic planning.
Project Achievements:
a. 18 enterprises with overseas investment intention and capability have been selected out;
b. The ODI motivation, plan, influential factors and capital sources of enterprises in Southwest China have been effectively analyzed;
c. Valid and reliable information is provided for the policy makers of the government departments.
6. Display Center of Chongqing Industrial Products for Export
The display of the sample products of typical local suppliers is helpful for the buyers for their visual and better understanding of the capability of Chongqing machinery industry.
7. Business Matchmaking Activities
SPX-CQ has been involved in organizing many large-scale business matchmaking activities and face-to-face meeting. Among these activities, SPX-CQ undertakes the responsibility of analyzing demands and RFQs of international enterprises, looking for qualified potential suppliers, generating face-to-face meeting schedules and managing the activities on-site. All these activities were highly appraised by international buyers and Chinese suppliers.
Project Aims:
To facilitate international industrial subcontracting, thus promoting the set-up and development of long-term cooperation between international and Chinese enterprises.
Project Achievements:
a. On May 16, 2006, sponsored jointly by Korean Automotive Industrial Association and Chongqing Foreign Trade & Economic Relations Commission, 2006 Chongqing-Korean Automotive Enterprises Match-making Meeting was held in Chongqing. Eight famous Korean Automotive OEMs and auto parts manufacturers had a face-to face meeting with 48 Chongqing automotive parts suppliers.
b. On July 6,, 2006, sponsored jointly by Chongqing Foreign Trade & Economic Relations Commission and Japan Tokai Japan-China Trade Center, Chongqing-Japan Automotive Enterprises Match-making Meeting was held in Chongqing. 36 Chongqing enterprises had a face-to-face meeting with 32 Japanese important automotive OEMs and auto parts manufacturers such as TOYOTA Industries and AISIN.
C. On October 24, 2006, Hiroshima Investment and Trading Meeting was held in Chongqing. Almost 30 entrepreneurs from Hiroshima had a face-to face meeting with more than 60 Chinese suppliers in the field of food, automotive, electron and machinery industry.
d. On November 11, 2006, American Wayne County Delegation and Chongqing Enterprises met with each other in Chongqing. SPX-CQ helped recruit local suppliers to participate in the face-to-face meeting. 15 companies from America Wayne met with over 50 Chinese suppliers in the field of automotive manufacturing, logistic, education and consultancy etc..
e．On Apr. 23, 2008, Korean and Chongqing Enterprises Match-making Meeting was held. The meeting was sponsored jointly by Korean International Trade Association and Chongqing Foreign Trade & Economic Relations Commission and organized by SPX-CQ. 15 Korean enterprises and 54 Chongqing enterprises attended the meeting.
f．On June 17, 2008, Italian and Chinese Enterprises Matchmaking Activity was held. This Activity was sponsored by Italy I.T.M. and SPX-CQ. 17 Chinese enterprises were organized to meet the Italian companies.
g. On November 5, 2008, Aerospace Sectoral Session of the 2nd China-Canada Business Forum was held. Bombardier Aerospace, Pratt & Whitney Canada and other 15 Canadian aerospace companies and institutes met 24 Chinese companies. 
Korean and Chongqing Enterprises Match-making Meeting
Italian and Chinese Enterprises Matchmaking Activity
2nd China-Canada Business Forum
Aerospace Sectoral Session of the 2nd China-Canada Business Forum
8 Fair organization
Subcon China—China Industrial Subcontracting & Outsourcing Fair
Subcon China (China Industrial Subcontracting & Outsourcing Fair), initiated in 2005 and supported by the global industrial subcontracting network of United Nations Industrial Development Organization (UNIDO), is the most important professional industrial subcontracting fair in China.
As the Organizer of Subcon China, SPX-CQ will pass the RFQs to exhibitors and recommend suitable partners for both parties before the fair. During the fair, face-to- face meetings between buyers and suppliers will be arranged. After the fair, follow-up services and assistance will be provided to facilitate long-term cooperative relationship between international buyers and Chinese suppliers. These professional services will improve the efficiency of communication and increase success rate.
Subcon China 2008
• 10,000 square meters of exhibition space
• Over 200 exhibitors
• More than 50 state-owned enterprises from sectors of aviation, aerospace, shipping and military exhibited in the fair, representing sophisticated processing capabilities of Chinese manufacturing.
• Bombardier Aerospace, Pratt & Whitney Canada and other 15 Canadian aerospace companies and institutes
• Indian delegation including Mahindra & Mahindra Limited, Larsen & Toubro Limited, VYOMA Switchgear, Confederation of Indian Industry and etc.
• Besides auto parts, purchasing products have been extended to food machinery, medical equipments, electronics & electrical appliances, mining equipments, aviation and aerospace, and etc..
Subcon China 2009 will be held on November 4th-6th in Chongqing.
9. International Observation Visits
Successful Investigation of Machinery & Electrical Product Market in India and UAE
From March 12-24, 2008, under the support of ICAMT (International Centre for Advancement of Manufacturing Technology) of UNIDO in India, and entrusted by Chongqing Foreign Trade & Economic Relations Commission, SPX-CQ organized a Chongqing delegation of Machinery & Electrical enterprises to visit India and UAE.
The delegation was made of 14 persons including the chief leaders from Chongqing enterprises in the field of machinery & electrical products, automotive and motorcycle parts and components and the representatives from Chongqing Foreign Trade & Economic Relations Commission and SPX-CQ. The chief leader from
ICAMT of UNIDO in India accompanied the delegation throughout the visit to India.
Aiming at publicizing Chongqing's investment environment and promoting the products in the industrial sectors of motorcycle & automobile components and machine tools, the delegation met with officials from Indian government and main industrial organizations, such as Department of Policy & Promotion of Ministry
of Commerce & Industry, Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM) and Indian Machine Tools Manufactures Association (IMTMA), visited the companies in New Delhi and Mumbai, including SONALIKA Group, Eicher Motors Ltd., Tata Motors Ltd., and Mahindra & Mahindra Ltd.. The delegation also took the advantage of opportunities to participate in the Global Summit on Micro, Small and Medium Enterprises in New Delhi. After the visit to India, the delegation headed to UAE where it paid a visit to Economic & Commercial Section of Consulate General of the People's Republic of China in Dubai, and China Machinery & Electronic Products Exhibition Center (CHINAMEX) in Sharjah, as well as the local motorcycle & automobile market.
During the visit the delegation had meetings with some Indian industrial organizations and leading enterprises in the field of mechanical and electrical products and both parties agreed to cooperate in many fields. Due to the professional support from UNIDO, all Indian institutions and enterprises made full preparation for the visit before and some enterprises passed products drawings to Chongqing enterprises for quotation on site.
The visit achieved its goal and was highly praised by involved enterprises from both India and China.
Chongqing delegation at Eicher Motors, India.
Chongqing delegation at Tata Motor, India.
