The 2017 Sany PALFINGER Supplier Conference was successfully concluded

On December 28, 2016, on this day of farewell to the old and welcome the new, Sany PALFINGER held the second supplier conference, and representatives of 48 leading suppliers across the country gathered in Rudong, Jiangsu Province to discuss the development plan for 2017, and the meeting started at half past 8.

First of all, Mr. Wang Xinyou, General Manager of PALFINGER, delivered an opening speech, in which he thanked all partners for their long-term support to PALFINGER Special Equipment Co., Ltd., and in the past year, through our joint efforts, we have initially achieved our vision. In 2016, the production and sales volume of Sany PALFINGER increased by 80%, bringing a lot of orders and benefits to our community of destiny. We have practiced the "guidance" with actionsTruck-mounted cranesThe promise of "industry development" has won dignity and pride for itself with success.

The 2017 Sany PALFINGER Supplier Conference was successfully concluded

Mr. Wang Xinyou also said that in 2016, the global economic demand was sluggish, China's GDP growth rate hit a new low since the reform and opening up, and most enterprises in the world and at home were in a severe business situation, with declining efficiency and difficulty. According to the forecasts of the state and various professional institutions, the economic situation in 2017 will remain severe, and China's economy will continue to maintain a low growth rate. In such a cold weather and economic situation, our orders continue to hit new highs, which brings spring breeze and warm sunshine to our community of destiny, and provides us with rare development opportunities to grow and break through the encirclement. He called on all supplier partners to take immediate action to organize production and seize this strategic opportunity.

Looking forward to 2017, Mr. Wang Xinyou put forward several proposals:

*5656, in terms of costs, on the one hand, doubling the purchase volume next year can further reduce the allocation of fixed costs, and on the other hand, major consulting agencies are predicting that raw material prices will remain stable in 2017 steel and coal. I hope that all suppliers will share the reduced cost and reduce the price appropriately, so as to help us continue to open the market and continue to increase orders and give back to everyone.

Second, in terms of material supply, we hope that all suppliers will make full use of the GSP system to do a good job in order management, strictly follow the GSP purchase order quantity and date delivery, and prepare goods in strict accordance with the plan, especially the long-term procurement parts must be prepared in accordance with the stocking plan for 1-2 months of finished product inventory.

Third, in terms of quality, I hope that all suppliers will further strict factory inspection standards, improve the inspection process, advocate the standardization and video of factory tests of suppliers, and further improve product quality.

Fourth, in terms of after-sales service, I hope that everyone will do a good job in emergency plans, *5656 time to deal with on-site quality problems, services such as firefighting, production does not wait for anyone.

Mr. Wang Xinyou's speech not only boosted morale, but also pointed out the direction of everyone's work, and everyone praised it.

Subsequently, Mr. Li Mingfu, Operations Director of Sany PALFINGER, made a report on the supply chain situation and the 2017 production and sales plan.

First of all, Mr. Li Mingfu pointed out that 2016 is a year of take-off of Sany PALFINGER's business and market share, and it is also a steady progress for product quality, 16 years is a year for our company to develop new parts and new models, with the active cooperation and efforts of various suppliers, customers are satisfied and recognized with the overall product quality of Sany PALFINGER. In order to further improve product quality and maintain the sacred image of "* brand crane", Mr. Li Mingfu put forward the following requirements and suggestions for supplier quality control in 2017:

*5656, I hope that all suppliers can earnestly accept the business philosophy of Sany Group's "quality changes the world", quality is the foundation of the enterprise, and put quality in *5656.

Second, it is necessary to establish a special professional quality management team and control system, and organize production in strict accordance with the design drawings and technological processes.

Third, strengthen the control of the entire quality process, especially to strengthen the process control and factory inspection of products.

In 2016, the lead time for the JV's mainstream production models was 25 days, a full 10 days short of the target of 15 days. Of course, this is related to the company's insufficient inventory of finished products, but it is also very significantly affected by the untimely arrival of procurement. We must work together with our supplier friends to start from the following points step by step:

*5656, fully standardize the use of GSP system to place orders, and realize the timely sharing of procurement information;

second, to improve the timeliness and accuracy of settlement;

Third, strictly implement stocking according to the stocking plan

Fourth, delivery is strictly controlled against the order delivery time

At the same time, in terms of cost and price, Mr. Li Mingfu pointed out that in 2016, the company has made certain achievements in cost reduction, especially the cost reduction work of folding arm crane, and expressed his heartfelt thanks to all suppliers for their support to Sany PALFINGER's cost reduction work. However, in the early communication, more suppliers had the following misunderstandings about cost reduction, and Mr. Li Mingfu also clarified this:

*5656, there are general concerns about rising steel prices, but according to investment banking professional forecasts, the average price of steel and other commodities is expected to decline by 15%-30% year-on-year in 2017.

Second, the economies of scale that come with increased production are generally overlooked

Third, in 2017, the product spectrum has been basically complete, the changes have been greatly reduced, the orders are more stable, the mass production agent is convenient, and the cost reduction space is more huge.

In 2017, the company will complete the production of 2,000 truck-mounted cranes. In the case of the overall downturn of the global economy, and the doubling of orders from Sany PALFINGER, we sincerely hope that all suppliers and friends can appropriately reduce prices, exchange price for volume, cooperate with us to reduce production costs, improve product competitiveness, shorten product delivery, and we will jointly expand the market share, so as to obtain major and more long-term benefits. Full trust, sincere cooperation, benefit sharing, risk sharing, and create a great cause.

At this conference, 40 contracts were signed on the spot, with a contract signing rate of 83%, and the participants expressed their gratitude to Sany PALFINGER for its long-term trust and support, and firmly supported the construction of Sany PALFINGER community with a shared future.

* After the luncheon, Wang Xinyou made a closing speech at the conference, he said: truck-mounted crane is China's special vehicle sunrise industry, Sany PALFINGER adhering to the "exceed customer expectations, guide the development of the industry" goal and belief, is committed to becoming the best in China's truck-mounted crane industry, we want to be the truck-mounted crane industry BMW, Mercedes-Benz, with the Sany PALFINGER community of destiny this big family, 2017, will be our year of victory again! ”