citaaeac shanghai aeac industrial product service&consulting co., ltd
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CITACITA AEACAEAC
Shanghai AEAC Industrial Product Shanghai AEAC Industrial Product Service&Consulting Co., Ltd. Service&Consulting Co., Ltd.
CITACITA AEACAEACWhat is AEACWhat is AEAC
EstablishedEstablished :: August 15August 15thth , 2005 , 2005 AddressAddress :: Shanghai, ChinaShanghai, China CapitalCapital :: RMB 1 million RMB 1 million StaffStaff :: 7 people (until Sept. 30,2005)7 people (until Sept. 30,2005) OwnershipOwnership :: PrivatePrivate
CITACITA AEACAEAC
Intermediary and Service Company lead by CITAIntermediary and Service Company lead by CITA Available services from the companyAvailable services from the company ::
Facilitating purchasing from both domestic and interFacilitating purchasing from both domestic and international companiesnational companies
Quality control of industrial productsQuality control of industrial products Logistics servicesLogistics services Consulting on exporting and importing industrial proConsulting on exporting and importing industrial pro
ductsducts Consulting on investment in ChinaConsulting on investment in China
Here Is What Here Is What We Can Do For We Can Do For
YouYou
CITACITA AEACAEACCompany’s Company’s
OrganizationOrganization
CITA
AEACExpert Committee Suppliers Committee
CITACITA AEACAEACCompany’s Company’s Organization, Organization,
ContinuedContinued
CITACITA :: Full Name: Powered Industrial Truck Institution Full Name: Powered Industrial Truck Institution
of Chinese Construction Machinery Associationof Chinese Construction Machinery Association Oversees the industryOversees the industry Membership includes all domestic fork lift truck maMembership includes all domestic fork lift truck ma
nufacturersnufacturers Membership also includes most of the parts supplieMembership also includes most of the parts supplie
rs, testing institutes, quality control institutes, and rs, testing institutes, quality control institutes, and design institutesdesign institutes
Facilitating between domestic and oversees compaFacilitating between domestic and oversees companiesnies
CITACITA AEACAEAC
Experts CommitteeExperts Committee Experienced specialistsExperienced specialists Very familiar with fork lift truck market and suppliers in ChinaVery familiar with fork lift truck market and suppliers in China Deep understanding of investment regulations in ChinaDeep understanding of investment regulations in China Li ZhongmingLi Zhongming :: 10 years of professional experience in the fie10 years of professional experience in the fie
ld of exporting/importing forklift truck partsld of exporting/importing forklift truck parts Lai ZhengzhongLai Zhengzhong :: 20 years of professional experience in the f20 years of professional experience in the f
ield of outsourcing and financial mattersield of outsourcing and financial matters Zhang YongZhang Yong :: 10 years of experience as a purchasing manag10 years of experience as a purchasing manag
erer Luo JiandongLuo Jiandong :: 20 years of professional experience in the fiel20 years of professional experience in the fiel
d of parts and machinery industryd of parts and machinery industry Ji YaweiJi Yawei :: 20 years of professional experience in the field of f20 years of professional experience in the field of f
orklift trucks and partsorklift trucks and parts
Company’s Company’s Organization, Organization,
ContinuedContinued
CITACITA AEACAEAC
Suppliers CommitteeSuppliers Committee Established by CITAEstablished by CITA Consists of major parts suppliers for Consists of major parts suppliers for
industrial trucks, about 200 membersindustrial trucks, about 200 members Able to provide detailed information on Able to provide detailed information on
parts suppliers in Chinaparts suppliers in China
Company’s Company’s Organization, Organization,
ContinuedContinued
CITACITA AEACAEACCompany’s Company’s Organization, Organization,
ContinuedContinued
AEAC is lead by CITAAEAC is lead by CITA AEAC takes action based on Experts’ AEAC takes action based on Experts’
Committee recommendations Committee recommendations AEAC gets support and help from AEAC gets support and help from
Suppliers CommitteeSuppliers Committee AEAC, in turn, gives assistance to AEAC, in turn, gives assistance to
members of the Suppliers Committee members of the Suppliers Committee to further their business needsto further their business needs
CITACITA AEACAEACCompany’s Company’s Organization, Organization,
ContinuedContinued
President : Xin Yuxiong
GM : Qian Xiaogang
Vice GM : Shen Peng
Honorable President:Su Enyi
Purchasing Dept. Technology and QC
Dept
Office Overseas Rep.
CITACITA AEACAEAC
Honorable PresidentHonorable President :: Su EnyiSu Enyi General Secretary of CITAGeneral Secretary of CITA Member of safety technical committee for special equipment, Member of safety technical committee for special equipment, which directly under the General Administration of Quality which directly under the General Administration of Quality
Supervision, Inspection and Quarantine of PRC Supervision, Inspection and Quarantine of PRC Involved in the industry for many yearsInvolved in the industry for many years
PresidentPresident :: Xin YuxiongXin Yuxiong Expert in Chinese engineering machinery Expert in Chinese engineering machinery Held the following positionsHeld the following positions ::
Head of the Forklift Division of Beijing Handling Machinery InstitHead of the Forklift Division of Beijing Handling Machinery Instituteute
The first GM of Cascade ChinaThe first GM of Cascade China Director of Xiamen Forklift Truck FactoryDirector of Xiamen Forklift Truck Factory The first GM of Linde - XiamenThe first GM of Linde - Xiamen
Company’s Company’s Organization, Organization,
ContinuedContinued
CITACITA AEACAEAC
GMGM :: Qian XiaogangQian Xiaogang 5 years of experience in purchasing forklift t5 years of experience in purchasing forklift t
ruck partsruck parts 8 years of experience as GM8 years of experience as GM EMBA degreeEMBA degree
Vice GMVice GM :: Shen PengShen Peng 12 years of experience in sales of forklift trucks12 years of experience in sales of forklift trucks 4 years of experience as GM4 years of experience as GM
Company’s Company’s Organization, Organization,
ContinuedContinued
CITACITA AEACAEACCompany’s Company’s Organization,Organization,
ContinuedContinued
Purchasing DeptPurchasing Dept :: 1-2 people1-2 people responsible for gathering & analyzing market dataresponsible for gathering & analyzing market data responsible for selecting suppliersresponsible for selecting suppliers ,, cost benefit analysiscost benefit analysis Technology and QC DeptTechnology and QC Dept :: 2 people2 people responsible for cooperating with Purchasing Dept to oversee variresponsible for cooperating with Purchasing Dept to oversee vari
ous technical aspects; also responsible for cooperating with foreous technical aspects; also responsible for cooperating with foreign companies to ensure that suppliers can provide the high quaign companies to ensure that suppliers can provide the high quality parts required by foreign companieslity parts required by foreign companies
OfficeOffice :: 1-2 people1-2 people responsible for setting up computer networksresponsible for setting up computer networks ,, logistics and hoslogistics and hos
ting visiting partiesting visiting parties OverseasOverseas :: 1 person1 person responsible for connecting domestic and foreign companiesresponsible for connecting domestic and foreign companies
CITACITA AEACAEAC
Rapid growth of the Chinese marketsRapid growth of the Chinese markets ,, Sales of poSales of powered industrial trucks reached 59,676 units in 2004wered industrial trucks reached 59,676 units in 2004 ,,which is 31.2% growthwhich is 31.2% growth ;; sales of non-powered indusales of non-powered industrial trucks reached 1,353,210 unitsstrial trucks reached 1,353,210 units ,, which is 43.7which is 43.78% growth8% growth
All major overseas industrial truck manufacturers alAll major overseas industrial truck manufacturers already have their own factories in China.ready have their own factories in China.
Projected growth for the Chinese market in 2005 is 1Projected growth for the Chinese market in 2005 is 10%0%
Quality of parts supplied by domestic companies haQuality of parts supplied by domestic companies has steadily improved. There are already over 200 sups steadily improved. There are already over 200 suppliers in China. (see attachment 1) pliers in China. (see attachment 1)
Current State Current State of the Chinese of the Chinese
MarketsMarkets
CITACITA AEACAEAC
GDP growth rate is between 8 and 10 %GDP growth rate is between 8 and 10 % Lots of research and development centers Lots of research and development centers
have been established in Chinahave been established in China Every major city has at least 1 universityEvery major city has at least 1 university Private companies now play bigger role Private companies now play bigger role
than state owned companies in the Chinese than state owned companies in the Chinese economyeconomy
Chinese economy is integrating with the Chinese economy is integrating with the world economyworld economy
Situation in Situation in ChinaChina
CITACITA AEACAEAC
More transparency is still needed in the More transparency is still needed in the governmentgovernment
Better enforcement of lawsBetter enforcement of laws Better protection of intellectual propertyBetter protection of intellectual property There is a gap in development between There is a gap in development between
eastern and western parts of Chinaeastern and western parts of China
Potential For Potential For Further Further
Development Development of Marketsof Markets
CITACITA AEACAEAC
Different CultureDifferent Culture Language BarrierLanguage Barrier ConnectionsConnections Improving management techniquesImproving management techniques
Situation in Situation in China - CultureChina - Culture
CITACITA AEACAEAC
Not all suppliers have CAD softwareNot all suppliers have CAD software Negotiations are essential to get a good priceNegotiations are essential to get a good price Some suppliers have very limited knowledge Some suppliers have very limited knowledge
about foreign standards and technical about foreign standards and technical requirementsrequirements
Sometimes quality of parts is a problemSometimes quality of parts is a problem They are often more interested in big ordersThey are often more interested in big orders Before using any supplier, it is essential to do Before using any supplier, it is essential to do
a thorough background checka thorough background check
Situation in Situation in China - China -
SuppliersSuppliers
CITACITA AEACAEAC
Sometimes Chinese manufacturers use local Sometimes Chinese manufacturers use local standards that may differ between regions standards that may differ between regions in Chinain China
Not all raw materials are available in ChinaNot all raw materials are available in China Travel time considerationsTravel time considerations Small orders are often ignoredSmall orders are often ignored Sources of information are often not Sources of information are often not
trustworthytrustworthy Packaging standardsPackaging standards
Situation in Situation in China - OthersChina - Others
CITACITA AEACAEAC
Low labor costsLow labor costs Product quality has improved in ChinaProduct quality has improved in China Big ordersBig orders Products requiring specially design modules with Products requiring specially design modules with
lead times longer than 2 yearslead times longer than 2 years Transportation and warehouse costs are low in Transportation and warehouse costs are low in
ChinaChina Products intended for international markets can Products intended for international markets can
be attested in Chinabe attested in China Chinese companies can also make mouldsChinese companies can also make moulds
Situation in Situation in China – Positive China – Positive
ElementsElements
CITACITA AEACAEAC
Very familiar with local environment and Very familiar with local environment and import/export procedures , and how to protect import/export procedures , and how to protect company’s IPRcompany’s IPR
Big supplier network enables rapid access to Big supplier network enables rapid access to informationinformation
Excellent system for evaluating suppliers, and the Excellent system for evaluating suppliers, and the quality and reliability of offered productsquality and reliability of offered products
Facilitating communication between the purchaser Facilitating communication between the purchaser and supplier and supplier
Helps the supplier understand the purchaser’s Helps the supplier understand the purchaser’s standards and testing proceduresstandards and testing procedures
Benefits both the purchaser and supplierBenefits both the purchaser and supplier Intermediary Intermediary
Why Choose Why Choose AEACAEAC
CITACITA AEACAEACIntellectual Intellectual Property Rights Property Rights
in Chinain China
TrademarksTrademarks PatentsPatents Copyrights Copyrights Commercial SecretsCommercial Secrets OthersOthers
(See Attachment 2)(See Attachment 2)
CITACITA AEACAEACHow to Protect How to Protect
Your RightsYour Rights
Applicable Laws (See Attachment 3)Applicable Laws (See Attachment 3) Administrative Protections (See Administrative Protections (See
Attachment 4)Attachment 4) Court Proceedings (See Attachment 5)Court Proceedings (See Attachment 5) Protecting Yourself (See Attachment 6)Protecting Yourself (See Attachment 6)
CITACITA AEACAEACProtection Protection
Methods in ChinaMethods in China
Administrative ProtectionsAdministrative Protections Order to refrain from violationOrder to refrain from violation ApologyApology Seizure of income obtained through violationSeizure of income obtained through violation Seizure and destruction of violating products anSeizure and destruction of violating products an
d equipment use for manufacture of such produd equipment use for manufacture of such productscts
Imposition of fineImposition of fine
CITACITA AEACAEACProtection Protection Methods Methods in Chinain China
Court proceedingsCourt proceedings Court proceedings, in particular if compensCourt proceedings, in particular if compens
ation for damages shall be claimedation for damages shall be claimed Protection by criminal lawProtection by criminal law Protection through customs measuresProtection through customs measures
CITACITA AEACAEACProtection Protection Methods Methods in Chinain China
Protecting YourselfProtecting Yourself Register your rightsRegister your rights Establish the department dedicated to IPR Establish the department dedicated to IPR Establish the rulesEstablish the rules Frequently investigateFrequently investigate Careful drafting of contracts (e.g. license coCareful drafting of contracts (e.g. license co
ntracts)ntracts)
CITACITA AEACAEACProtection Protection Methods in Methods in
ChinaChina In case of violation:In case of violation:
Secure evidenceSecure evidence Examine possible measuresExamine possible measures Decide on administrative/court protectionDecide on administrative/court protection Evaluate costs of protectionEvaluate costs of protection
CITACITA AEACAEAC
(Flowchart) See attachment 7(Flowchart) See attachment 7
AEAC StructureAEAC Structure
CITACITA AEACAEAC
Supplier Survey Form (See Attachment 8)Supplier Survey Form (See Attachment 8) Supplier Technology Inspection Form (See Supplier Technology Inspection Form (See
Attachment 9) Attachment 9) Supplier Quality Control Inspection Form (See Supplier Quality Control Inspection Form (See
Attachment 10)Attachment 10) Supplier Evaluation Form (See Attachment 11) Supplier Evaluation Form (See Attachment 11) Quote Analysis FormQuote Analysis Form Major Parts List (See Attachment 12)Major Parts List (See Attachment 12)
AEAC AEAC Evaluation of Evaluation of
SuppliersSuppliers
CITACITA AEACAEAC
BlueprintsBlueprints BOMBOM SamplesSamples Standards (products/packaging)Standards (products/packaging) Testing StandardsTesting Standards Annual Order SizeAnnual Order Size Acceptable parts pricingAcceptable parts pricing Any special requirementsAny special requirements
Information Information Required By Required By AEAC from AEAC from CustomersCustomers
CITACITA AEACAEAC
Current situation of raw materials in ChinaCurrent situation of raw materials in China Exchange RateExchange Rate StandardsStandards (( SAE/JIS/DIN/BS/GBSAE/JIS/DIN/BS/GB )) Certification for specific productsCertification for specific products (( CE/GS/3CE/GS/3
CC )) Providing various choices in parts materialsProviding various choices in parts materials Interpreting/translatingInterpreting/translating
AEAC Role in AEAC Role in Purchasing Purchasing
ProcessProcess
CITACITA AEACAEAC
Membership FeesMembership Fees Associate MembersAssociate Members Regular MembersRegular Members VIP MembersVIP Members
Service FeesService Fees General ConsultingGeneral Consulting Specific ConsultingSpecific Consulting Turn-Key ConsultingTurn-Key Consulting
AEAC Fee AEAC Fee StructureStructure
CITACITA AEACAEAC
Develop an excellent network of Develop an excellent network of supplierssuppliers
Develop a web site Develop a web site Develop a database of standardsDevelop a database of standards Develop an investment databaseDevelop an investment database
AEAC – Future AEAC – Future StepsSteps
CITACITA AEACAEAC
Thank YouThank You !!
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