ITOCHU Automobile Corporation.

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International Parts Procarement

Procurement of OEM parts for automobiles and construction machinery - Nurturing parts suppliers in China
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Amid the expanding globalization of the manufacturing business, manufacturers can now opt to procure parts anywhere in the world in order to seek highly cost-effective quality parts.

ITOCHU Automobile Corporation supports Japanese automobile, construction machinery and agricultural instrument manufacturers in their procurement of parts overseas. To supply low-cost parts of a high quality, we undertake the discovery and development of overseas suppliers, help the suppliers enter into mass production, and provide them with technical guidance on a continuous basis, in addition to performing regular export and import tasks.

Product lines
Sheet metal and welding parts, high-precision processing parts, interior and exterior parts, electrical components, plastic injected parts, press, casting and forging parts, etc.

Procuring manufacturing and assembly parts

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ITOCHU Automobile procures OEM parts for Japanese and overseas manufacturers from all over the world, including China, which is demonstrating remarkable quality improvement while at the same time achieving lower costs.

ITOCHU Automobile can respond to wide-ranging requirements from low-cost sheet metal and welding parts, as well as casting parts, to high-precision processing and electrical components that necessitate high levels of technologies.

In the construction machinery, for example, we are currently procuring and supplying more than 3,000 parts and components items, ranging from mainframes to small brackets for a wide variety of excavators, wheel loaders, bulldozers and large dumper trucks.

Operating closely with client manufacturers

We select suitable suppliers from among as many as 200 top supplies-all of which we have nurtured-to meet the requirements of our clients. We support a complete cycle of procurement tasks, covering quotations based on technical drawings entrusted by a client, the manufacture of sample products and arrangements for mass production to quality control and development of just-in-time (JIT) delivery systems.

For our domestic clients, we operate in a position extremely close to the client manufacturer, as if ITOCHU Automobile is fulfilling the client's own procurement function.


Service functions for parts procurement business

Throughout all parts procurement processes, we offer unique service functions, while placing an emphasis on quality control and delivery date management.

*JIT delivery

Based on a client's long-term production plan, we calculate the necessary number of parts needed for each item and place an order with suppliers for optimum quantity of parts, thereby serving as a total coordinator. ITOCHU Automobile undertakes stock management at a warehouse located close to the client's factory and realizes just-in-time delivery in accordance with the client's delivery instructions.

Overseas offices : Dalian, Beijing, Shanghai in China

Functions
Development of suppliers, technical assistance in parts manufacturing and quality control guidance
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As parts procurement hubs in China, we provide support in the parts development processes from selection of suppliers to trial and mass production.

ITOCHU Automobile accurately instructs and communicates technologies/techniques required by a client to the best supplier. We also provide fine-tuned services: We translate standards, drawings and process sheets and take care of the client's staff visiting China on business from Japan, through collaboration with our Chinese technical staff and Japanese staff.

Supporting the establishment of overseas plants for auto, construction equipment and parts manufacturers

Capitalizing on the ITOCHU Group's global network and extensive experience and know-how and ITOCHU Automobile's accumulated expertise, ITOCHU Automobile assists its clients to realize smooth plant launches and subsequent production management in their endeavors to establish production bases overseas where legal systems, political conditions, cultures and industry infrastructure often vary greatly from those in Japan. We create an environment in which our clients can concentrate on production.

Specifically, in the client's target country/region, we collect information, discover excellent local partners, propose possible plant sites, negotiate licensing with the local authorities on behalf of the client and make other arrangements for the delivery of equipment and other materials necessary for the start-up of the plant. We also provide a variety of support services at all stages from feasibility studies (FS) to the actual launch of a plant.

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Once the plant has started operation, we fulfill functions, on a continuous and stable basis, such as procuring production materials, equipment and other resources, distribution and trade finance to support clients' production activities.

In addition, we provide management support, such as through equity participation, dispatch of personnel, financial management and the development of management plans. We extend support services also in marketing and sales of products. Through these extensive support activities, we are contributing to the enhancement of our clients' competitiveness, stable management and growth.


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