[May 18, 2023, Nanjing] The BBAC Supplier Conference 2023 was held today in Nanjing, with the theme of "Together Shape Sustainable & Resilient Chain". More than 600 supplier representatives from across China and around the world gathered to discuss recent achievements and future development with BBAC, opening a new chapter in a long-run win-win cooperation.

At the conference, awards were given out in recognition of the efforts made by exemplary suppliers to promote the high-quality development of BBAC since 2020. The awards covered six categories: Green Contribution, Integrity Innovation, Intelligent Connection, Extraordinary Quality, Mutual Assistance and Indigenous Development. 16 suppliers in total were honored from among more than 1,000 suppliers for their outstanding performance.

During the past three years, BBAC has made continuous achievements across a wide range of aspects, including product portfolio expansion, production capacity improvement and platform construction. With its commitment to quality, BBAC has adopted a two-pronged approach of continuous upgrading of fuel products and continuous enrichment of electric product matrix, successively putting into production fuel models such as GLA SUV, GLC L SUV, while successively building all electric models as the EQA SUV, EQB SUV, EQE and the all-new EQE SUV. At the same time, BBAC has enhanced its capabilities in intelligent manufacturing and greatly improved production efficiency of BBAC’s Shunyi Plant, an exemplary center of world-class intelligent manufacturing, has been further developed to expand its production scale and capacity. This series of outstanding achievements were all made possible due to the support and in-depth cooperation of BBAC’s many suppliers.

Leading the journey with excellent quality, continuously improving the supply chain quality management system

Behind BBAC’s high-quality development is the continuous improvement of product quality. Based on the company’s leading intelligent manufacturing system and strict product quality control, BBAC widely applies the global state-of-the-art production equipment with a focus on upgrading and optimizing the intelligent manufacturing system, consolidating the foundation of product quality and ensuring the accuracy and efficiency of each manufacturing process. Based on a quality management system backed by big data, industrial Internet of Things, artificial intelligence and other technologies, BBAC implements full-cycle quality management of products to ensure that each vehicle produced can meet Mercedes-Benz's global unified quality standards.

In addition, BBAC sets a strong supply chain quality management system based on integrity and compliance, guaranteeing product quality from the source of the manufacturing process. Following the quality standard of Mercedes-Benz One-Q, BBAC has continuously developed a series of digital and intelligent supply chain quality management methods, thoroughly implementing the concept of product quality risk prevention and control. This includes continuously improving the supply chain quality management platform by strengthening supplier process audit, improving the supplier evaluation system, establishing a supplier quality prevention mechanism, optimizing the new project release process, strictly controlling product quality, and launching special supplier promotion projects. BBAC also encourages supplier partners to apply new technologies such as production line automation, aiming to improve the production process level and product quality stability of supplier partners, to ensure high-quality delivery of products from the source.

Writing a new chapter with pioneering and innovation, working together to stand as industry leader

As one of the largest production bases in Mercedes-Benz's global production network, BBAC not only focuses on manufacturing, but also extensively carries out logistics, parts supply and other aspects of business, driving the integrated development of upstream and downstream supply chains. BBAC gives full play to its role as the hub of a complex supply chain, drawing on its strong advantages in digital, flexible and efficient operations, to continuously promote supplier partners to further enhance scientific research capabilities and production technology, in an effort to fully optimize the local supply chain.

In order to effectively improve logistics efficiency, shorten the supply cycle, and improve the response speed and market competitiveness of BBAC, the company has continuously intensified efforts to promote the deep localization of parts and components, including by helping leading local suppliers introduce technical patents and other measures. Localization has not only improved the technical level and innovation ability of local supplier partners, but also promoted the development of the regional economy and automobile industry chain.

In the critical period of electrification transformation of the automotive industry, BBAC works with suppliers and partners to support the transformation, of leading suppliers in order to maximize the opportunities of the electrification process. At the same time BBAC is exploring new industrial development models in the era of electrification, establishing a "BBAC solution" for an exclusive supply chain for electric vehicle.

Empowering the transformation and upgrading of the industry, promoting sustainable development in multiple dimensions

Under the guidance of BAIC Group's “BLUE Plan” and Mercedes-Benz Group's “Ambition 2039” strategy, BBAC has formulated the Supply Chain 2039 Carbon Neutral Action Plan. Relying on its own advantages in green manufacturing to carry out comprehensive cooperation with supplier partners, BBAC drives the construction of a green manufacturing system across the entire industry chain and forming a “BBAC model” to lead the industry. At present, of BBAC’s more than 400 suppliers, more than 90% agree with this carbon-neutral action plan, working together with BBAC to build a sustainable supply chain.

BBAC has taken a series of measures, including self-production of green energy, purchase of green electricity, energy saving and emission reduction in logistics and other operational links, while also working with partners to further reduce carbon emissions. In November 2022, BBAC joined with Baosteel to build a green steel supply chain. In 2023, BBAC will gradually begin use of low-carbon steel with greatly reduced carbon emission intensity. From 2026, BBAC will gradually utilize CO2 reduced steel with a 50%-80% reduction, and it will use green steel with a 95% carbon emissions reduction onwards. BBAC integrates the values of sustainable development into the industrial supply chain, further expanding the meaning and value of "luxury" in the new era.

The convening of this supplier conference provided a valuable opportunity to further build understanding and consensus on the cooperation model and strategic planning between BBAC and supplier partners, promoting the development of the relationship between the two sides in a broader, deeper and more practical direction. In the future, on the basis of deepening high-end manufacturing and building high-end products, BBAC will continue to promote the transformation, upgrading and common development of supplier partners, and contribute to the upgrading of Beijing’s high-end automobile manufacturing industry.