On June 13, Bosch Asia Pacific Supplier Conference 2016 ended successfully at Kempinski Hotel Suzhou. We interview Mr. Sheng Hong, Vice President of IKD Co., Ltd, Die casting supplier of Bosch specially this time. Let’s listen to his feelings on the past cooperation and hope for the future cooperation with Bosch.
Q1: Mr Sheng, thank you for your attending the Bosch Asia Pacific Supplier Conference as the representative of IKD. Please introduce your company briefly.
A: IKD is a joint-stock enterprise specialized in manufacturing high-precision aluminum die casting products. Over the years of development, we have already had mould design/simulation software and its moulds manufacturing, die casting, precision machining, impregnation equipment, surface treating & assembling and such manufacturing process., and built a set of project management system, quality management system, production management system and risk control system that meets the requirements of auto spare parts manufacturing.
Q2: Why IKD responded to Bosch to set up a new factory in Mexico?
A: As a preferred die casting supplier of Bosch, IKD has been adhering to the pursuit that “all for customers’ expectations and supply all the factories of Bosch around the world locally”. At Bosch Germany Supplier Conference in September, 2013, Bosch proposed that European suppliers should build factories in Mexico so as to fill the gaps of North American supply chain, comparing with the mature supplier system in Asia Pacific. Dr. Nowak and I talked about the globalization strategy of IKD at lunch meeting, and his encouragement further enhanced our confidence that IKD can set up production base at North America firstly. I contacted the procurement director of Bosch China after coming back and expressed that we planned to build a new plant in Mexico. The procurement team of Bosch China agreed with us very much. Then we put forward a goal of building up a new factory within two years after communicating with the management team of Bosch North America. For such a seemingly impossible task at that time, the management team of IKD held a meeting overnight and made a preliminary plan after full argument, hoping to get help from Bosch local in Mexico.
Q3: What did Bosch do to help IKD to fulfill the task?
A: Both Bosch China and Bosch North America co-worked actively. First they helped us to confirm our demand that finding out the local Mexico partners. Through contacting dozens of die casting companies in the die casting supplier database of Bosch North America, we finally confirmed that eight companies of them had cooperation intention. They also helped to arrange a conference call weekly so as to enhance understanding of IKD and the suppliers. After four months’ communication and going through many setbacks, we finally found the local partner FAEZA until February 2014 with the help of Bosch by arranging for a week of specific travel plans and sending 2 senior procurement managers to drive with the IKD team within the week, and Bosch also contributed to signing a memorandum of cooperation after the first meeting with FAEZA. During the whole process of IKD building Mexico factory, it was Bosch group who provided us strong guidance and support by sending elite teams at projects, technology, system establishment, and even the layout of new plant, it is also the key element that IKD can set up a plant in Mexico 202 days ahead of schedule.
Q4: As the first China’s die casting supplier who set up a plant in Mexico, what do you think about the future relationship with Bosch?
A: I think Bosch as the world’s largest auto parts enterprise treats all suppliers equally. As what I shared in the meeting, I think this success of building a new plant, first of all, we must have our own strategic planning as a supplier and gain acceptance of Bosch, and after high-level of both sides confirming the goal, each department of the two sides need to make concrete implementation plan and tracking the results constantly under the unified goal, adjusting local objects according to the situation so as to meet overall goals and accomplish it in the right time and quality.
IKD successfully established a plant in Mexico and began to produce locally and supply to Bosch North America from this year, which is just the first step in the long march. In the future, we will encounter all sorts of problems, but IKD is confident to overcome the difficulties and meet higher demands of world-class customers like Bosch with the strategic cooperative relationship with Bosch. Finally I also wish that more Chinese suppliers will join us, facing the huge challenges like the present exchange rate, labor cost etc, distributing in Mexico and looking around the whole world to lay a solid foundation for the sustainable development of the enterprise. Meanwhile, I’m also willing to share my experience to help you to meet the goal earlier.
Finally I also expect more Chinese suppliers to join us, in the face of now the exchange rate, Labour cost huge challenges, such as Mexico's layout, think globally, for enterprise's sustainable development to lay the solid foundation, I also very willing to share our experience and help you earlier to attain this goal. Thanks again for the support from Bosch group to IKD.
(Quote from Bosch China WeChat)