Shih Hsiang Auto Parts Co., Ltd. is the largest and most comprehensive supplier of aftermarket (AM) suspension and steering parts in Taiwan and, for control arms for American cars, in the world.
Ever since its inception in 1978, the TUV ISO 9001-approved company has invested constantly in product development and is now able to supply over 3,000 control arm models for almost all popular Asian, European, and American cars.
The firm set a new milestone of growth in mid-2011, when it completed construction of a large modern logistics center next to its factory in central Taiwan. The new facility houses materials, key components, and finished and semi-finished items, with the inventory of semi-finished products alone being worth up to US$15 million.
The new logistics center will be expanded again in less than a year to meet increasingly strong global demand, reports Kevin Chou, the company’s president.
Chou adds that the stocking of a large inventory of semi-finished products enables his company to cut its lead time (the new logistics center will shorten the time from the current average of 60 days to less than 30) while saving on cost and storage space. Close cooperation with well-established subcontractors for the immediate supply of key parts also helps. Chou says that in three to five years, he will be able to ship orders as they are received.
Shih Hsiang spends US$2.3 million to US$2.9 million (10% to 15% of revenue), and develops an average of 80-90 new products, every year. It is known by its customers for filling small-batch, large-variety orders, thanks to an array of advanced manufacturing equipment such as computerized numerically controlled (CNC) machines and welding robots.