Competencies, Vertical Integration and Value Chain Structures
2008-12-09 Source：english.chinabuses.com
Generally, OEMs will increasingly focus on systems and functionalities that determine brand positioning and offer differentiation potential. Other systems and functionalities will be outsourced to system suppliers or jointly developed and manufactured with other OEMs.
On the "hardware" side, the engine and the cabin (styling, not manufacturing) are clearly considered as core competence. Also, the chassis is not considered as a potential outsourcing module, because it represents the backbone of vehicle assembly and needs to remain inhouse. In the case of other systems, such as steering, axles, and gearboxes, differentiation potentials are considered as limited and, therefore, out sourcing is an option for most OEMs. There are numerous examples for cabin modules, steering systems and gearboxes.
With regard to electronics/SW and functional integration of systems, OEMs consider all functions related to vehicle dynamics as core competence. For example, while gearbox development and manufacturing is not considered as core competence, developing and implementing the gear shifting strategy clearly is. Also, the definition of the E/E architecture is considered as core competence. The core competence criteria alone would point to large business opportunities for system suppliers in the commercial vehicle industry. Nevertheless, a set of other criteria must be fulfilled before OEMs seriously consider outsourcing modules or systems. OEMs generally follow a clearly defined path when deciding on outsourcing.
Due to various other barriers, primarily insufficient supplier competence and limited synergies or economies of scale, respectively, the number of modules potentially outsourced by OEMs is rather limited. In many cases only, at best, half of the OEMs are interested in sourcing a complete module or system. The following cabin modules receive the highest acceptance by OEMs: "Driver Control Module", cockpit module, door modules, and front end module. Also, complete steering systems (below firewall), chassis suspension systems, integrated air supply, intelligent wheel ends, and exhaust systems have potential for outsourcing in the future. Axles most probably will not be outsourced.
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