On January 18, 2016, representatives of Yuchai machinery suppliers across the country gathered in Nanning, Greentown to attend the 2016 Yuchai Machinery Supplier Conference. Chairman Yu Ping of Yuchai Co., Ltd., President Wu Qiwei and other leaders discussed with suppliers on the transformation of Shaoguan, conspired for a harmonious and win-win strategy, and worked together to create the industry's best supply system. In 2015, the engine industry in the “new normal†period of China’s economy was bleak and arduous. In 2015, the total sales of trucks and buses nationwide was approximately 2.71 million units, a year-on-year decrease of 11.61%. Although Yuchai's engine sales have fallen year-on-year, the sales of Yuchai's main 16 engine companies ranks first, and is about 140,000 higher than the second. In the face of market difficulties, Yuchai shares its initiative to change, reform and innovate, practice hard, and cooperate with the supply chain. Through cooperation with suppliers, Yuchai's system power and manufacturing power have been further enhanced. The quality and delivery level of the products have been greatly increased, the revenue has been significantly improved, and the company's core competitiveness has been enhanced. In 2016, the industry market was in a grim situation. Yuchai Co., Ltd. proposed a steady increase in engine sales and a further increase in market share. In the supply system construction, Yuchai will aim to build the best supply system in the industry, and build quality advantages, cost advantages, JIT supply chain, and championship consortium as its work priorities, and work collaboratively with suppliers to create a community of interests. The supply chain and Yuchai achieved quality coordination, cost synergy, delivery synergy, R&D synergy, market service synergy, simultaneous development, and a win-win situation. Junping and the supplier analyze the development trend of the industry and discuss the best strategy to build the industry's best supply system. Junping believes that in 2016, Yuchai's suppliers will face two major challenges. First, the test brought by the country's emission upgrades to suppliers. Second, the competition of products from different manufacturers on the same platform will become more intense. This year, Yuchai made major changes to the selection and protection of suppliers, reduced the number of suppliers, and focused on enhancing the capabilities of suppliers in all aspects. It is hoped that the majority of suppliers will recognize the situation, work together with Yuchai, make a transition, and keep pace with the development of Yuchai. At the same time, we must pay attention to the implementation of national emission regulations and make full preparations to jointly meet the arrival of Euro 6 with Yuchai. At the same time, 2016 is a very important year for the country’s five products and non-road products to seize the market. Yuchai must do a good job and seize the opportunities. Luan Ping put forward new requirements for Yuchai’s stock procurement system. Internally, the company must make major changes to the procurement system. Externally speaking, the procurement system needs to strengthen communication with suppliers and seriously discuss how to build the industry's best supply system and how to reduce costs and increase profits. In addition, the form of supplier meetings must be innovative and practical.
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