In recent years, China's fastener industry has been under considerable development. However, in order to win the campaign in such high competitive domestic and foreign markets, Chinas' fastener industry still need to conduct more effective innovation.
Nowadays, some enterprises aware of the importance of innovation and make full use of innovated technology and methods to build up sustained competitive advantage. However, the cooperation of members in fastener supply chain is indispensable to innovation.
In the upstream of fastener industry, raw material costs take up a great part of enterprise¡¯s expenditures. Optimizing procurement operations, achieving the optimized resource allocation and lowering the purchasing costs demand immediate attention.
Some inside experts believe that for a long time, it is in lack of coordination among designing enterprise, purchasing enterprise and manufacturing enterprise of fastener upstream. What is more, they have not build up win-win partnership with fastener suppliers. As a result, it leads to high total cost of fasteners, long production time, extended product launching circle, and inventory growth or product shortage.
In China's three basic industries, the pressure of technology and management innovation is on the machine and vehicle enterprises, while fastener enterprises are in a passive position and lack of initiation of technology innovation. Nowadays, China is facing such situation "Fastener enterprises are dragged by machine and vehicle enterprises, while the situation "machine and vehicle enterprises are promoted by fastener enterprises" is far away. This is one gap between China's fastener enterprises and foreign fastener enterprises.
Fastener enterprises and machine & vehicle enterprise are mutually dependent: only when fastener enterprises promote their innovation can machine & vehicle enterprise achieve the leap of innovation and creation. Some enterprises with a high starting line have begun to establish relationship with machine & vehicle enterprise, achieving synchronous design of 10.9 grade high strength fasteners with vehicle factory. Therefore, it helps to upgrade their fastener researching and developing capability and lower the researching costs largely.
It can be said that when playing different repertoire, it has to strengthen training each players to meet achieve teamwork. It is also applicable to fastener enterprises. In the constantly changing circumstances, enterprises in fastener supply chain, upstream or downstream, are like orchestra and establish a good partnership with mutual understanding and mutual supportive atmosphere, which is an important prerequisite for success.
Therefore, the fattener enterprises in upstream and downstream should share the information together and establish cooperation to link all the business of all level enterprises together. Local fastener association plays a critical role in this aspect. Only in this way can we achieve the overall value of the fastener supply chain and boost enterprise's competitiveness and ultimately improve the entire fastener supply chain value to achieve win-win situation.
