"For fastener companies, ISO/TS 16949 is both a certificate indicating one’s strength and a passport to the international market."
"Foreign companies did not sign purchase orders with us any more. Instead, they asked us to show them the certification validation." While the export companies had a good harvest in the 100th Canton Fair, however, many local fastener companies told the facts to the reporters in recent days. The certification validation referred to is ISO/TS 16949, which is going to be implemented comprehensively at the end of this year.
ISO/TS 16949 is a new quality standard covering the area of international automotive component supply. Automotive manufacturers for every multinational company will start to apply this standard when purchasing components. That is to say, fastener companies who do not pass ISO/TS 16949 certification will lose many opportunities of supplying fasteners to automotive or machinery companies next year.
In the face of the current situation, surprisingly, local fastener companies show exceptional calm: Less than 30 manufacturers had passed the certification, while other companies do not concern about it at all.
What confuses the experts the most is that many fastener companies or OEMs lack positive attitudes and sober mind of this certification. It is necessary for them to pass the certification as it is an open sesame to the world market if they are interested in accessing it.
It is said that the cost for TS 16949 certification is high. It seems unaffordable for the some fastener enterprises that are not the direct suppliers for automotive manufacturers. We are doomed to rely on others if we lack international quality control system, only depend on the local low-cost labor force and labor intensive structure and only produce primary products with low added-value. Although some purchase orders are received for a while, it is hard to imagine how much space the companies could develop when they confront the increasingly higher international standard, as they have already lost the chances to compete with others in the market under the fair condition.
During the Eleventh Ten-Year Plan, our automotive industry is growing rapidly, which brings in new opportunities and challenges. The companies that get the ISO/TS 16949 certification are certain to have the first-class quality in the local fastener market. For example, when choosing fastener suppliers, firstly, Faw Volkswagen will have a check at their certification, as it has become an inevitable trend for the development of local fastener companies. Moreover, the ISO/TS 16949 certification will greatly impact the life of companies.
For fastener companies, ISO/TS 16949 is both a certificate indicating one's strength and a passport to the international market.
Many small and medium-sized fastener companies are taking up ISO/TS 16949 certification. However, the fee costs them too much. With the current profits, they could hardly afford it. At the same time, they are not the direct suppliers for automotive manufacturers. Therefore, they think the certification is not worth the candle. In fact, they can carry out the ISO/TS 16949 instead of getting certification. On the one hand, the cost could be reduced; on the other hand, they could make use of the rules of ISO/TS 16949 and improve the overall management level and quality control.
The purpose of ISO/TS 16949 certification is to keep the companies improving in the areas of quality, service, logistics and cost, etc. Liao Yingwu, the director of Taiwan Industrial Fasteners Institute, talked about his visit to mainland. He found that some companies only considered the equipment to be furnishings. He figured that the companies in mainland should not only expand the scale—building factories and buying equipment, but also keep on improving, invest more on lab equipment and make full use of it. As a result, they will get better reward. Meanwhile, in the course of quality upgrade, they should obtain the certifications such as ISO/TS 16949. The insiders pointed out that China fastener companies should not rest on their laurels. On the contrary, they should avoid being eager for quick success and instant benefit and should enhance themselves according to the international standard. To improve their competitive edge in the market, they have to meet the increasingly higher international standard and avoid being the low-cost factories for world brands.
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