Delivery and logistics pose major problems for Chinese suppliers

Shanghai, November 9, (Gasgoo.com) - Wolfgang R.Wagner, general manager of German Association of the Automotive Industry (VDA) dismissed an earlier Chinese media report saying that 75% of Chinese suppliers fail to meet German automakers' standard as “inaccurate,”  China Business Herald reported today.

"The fact that 75% of Chinese suppliers that supply auto parts for German automakers in China failed to meet standard A doesn't mean they are unqualified," said Wolfgang R.Wagner. "Chinese reporters got me wrong," he shrugged.

According to Mr. Wagner's statement last month, only 25% of local auto parts suppliers that sell products to German automakers meet standard A --- a score above 91 points of a total 100 points.

“About 70 percent problems are tied to logistics, time-definite delivery and stability of production process,” Wagner said. “Chinese suppliers should pay more attention to their management and R&D.”

Many Chinese suppliers have not established a modern management system in their production and delivery system. For example, many problems are connected with wrong labels, irregular production process and chaotic situations in stockpiling, purchasing and sales management, Wagner said.

Study shows that Chinese auto parts suppliers spend 2% of their total revenue in R&D; in contrast, auto parts suppliers in other countries spend 5% to 10%.