Having won ISO-9001 approval and with QS-9000 certification expected to follow this year, Chiang Bin is highly competitive--and it needs to be. "There are three key factors which enable us to overcome the fierce competition from both domestic and foreign rivals and help us to be a leading international supplier in our line," comments the firm's managing director, J.T. Chen. "Those factors are unmatched development capability, small-volume, large-variety production, and quality."
Self-development, Chen goes on to explain, "plays a key role in the aftermarket solenoid switch industry. If you are in this line, you will know that the only way you can carry out self-development is not only with computer systems or blueprint-drawing machines, but also with a comprehensive combination of abundant experience, cost evaluation, strong support from satellite plants, and a group of talented experts who want to grow with the company."
The result, he notes, is the ability to create, at minimum cost, new models that closely resemble original-plant products. And this must be done without reference to the original product's specifications, safety standards, and other details.
Advantages of Being Small and Large "Our small-volume, large-variety production mode also strengthens our international competitiveness," Chen stresses. "Small volume lets us acquire a large number of customers and escape the risk of relying on only a few big buyers, while large variety makes us an ideal supplier of one-stop-shopping services."
Chiang Bin currently operates two plants in Taiwan. One is in Taoyuan, in northern Taiwan; it has a monthly production capacity of about 25,000 units and concentrates primarily on solenoid switches and parts for European cars as well as some products with special specifications. The other plant is in Kaohsiung, southern Taiwan; its monthly capacity is about 30,000 units, most of which are for starters in Japanese cars. Chiang Bin exports about 95% of its products to customers in Europe (which accounts for about 30% of all overseas sales), the United States (20%), and other markets all over the world. Just 5% of output is reserved to meet Taiwan's domestic demand.
The company has also penetrated the OEM (original equipment manufacturer) supply chain of an American maker of automobile starters. Chiang Bin expects that more OEM sales will come as the outsourcing of parts becomes more of a global trend thanks to efforts by manufacturers to cut costs. (Aug. 2001)
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