Compared with companies in industries such as electronics and textiles, carmakers and their parts suppliers face difficult challenges in global sourcing. Auto parts factories often require large up-front investments, which are usually paid off over the five- or seven-year life of a typical car model. Suppliers frequently spend the year or two before a car’s launch refining the design and production process of its parts. Once assembly begins, the carmaker expects suppliers to find cost reductions through engineering changes or manufacturing improvements. Even after retiring a model, the carmaker often continues to buy replacement parts for old cars still on the road. And many parts require expensive production tools that can’t be replicated easily or shifted quickly to a rival supplier.
As domestic car markets in China and India took off in recent years, suppliers there made such big strides in quality and efficiency that the best of them are close to meeting world-class standards. Meanwhile, cutthroat market conditions are forcing auto manufacturers into perpetual belt-tightening mode.
Having prepared through decades worth of supply chain development in China and emerging foreign supplier markets, Central Screw Products is well positioned to work in today’s integrated global supply chain paradigm. Along with our highly technical domestic manufacturing capabilities, Central Screw Products has well-established relationships with our global supply chain partners. Central Screw Products has years of managing these resources to ensure our end products are of the highest quality, cost efficient, and delivered on time within our ISO 9001:2008 and AS9100 compliant manufacturing environment.