Industry Activities 

Annual Sales to Japan Achieve over 10 of Machines
Not Affected by 2011 Quake in Japan

Jern Yao Enterprises Co., Ltd. sells more than 180 fastener forming machines per year, ranking number one in the world in terms of the production output of such machine. The company provides over 100 types of machines and has more than 10 oversea distributors. Most of its clients are automotive fastener and parts supplier. Its turnover reached NT$1.6 billion and it is expected to grow more than 10% in 2012. The company categorizes its machines into different types that have different price tags and component grades, to meet the needs of its clients in different countries. It has been doing business with its Japanese clients for 15 years and has sold almost 200 machines to them. Each year it sells more than 10 machines to Japanese owned and operated firms based in Japan and outside of Japan. Its Japanese clients make up about 5 to 10% of its total sales. Its Japanese market sales have not been affected by the quake that detrimentally devastated Japan in 2011 because most of its Japanese clients are not located near the eastern coast of Japan. In its early stage, the company had entered the Japanese market thanks to the assistance provided by a trading firm in Taiwan. However, during this time, it sold very few machines to Japan. Then about 10 years ago, OSY Ltd., a Japanese firm specialized in the business of cold forging, die manufacturing, relevant equipment and processing machines, became the sole distributor of Jern Yao’s machines in Japan after approving its quality. In the meetings of these two companies, both sides communicated in English.

Machines with Competitive Price
OSY Further Established a Complete MRO Service Network in Japan

Ryan Liu, Chief of Sales Department of Jern Yao, said that in the beginning, Japanese market did not have much confidence in Taiwanese machinery and therefore, “In the first 6 years, very few of our machines were sold in Japan. After OSY put more effort in the development of the Japanese market and machine buyers were quite satisfied with the machines that they bought from OSY (partly thanks to the machines’ prices which were 30% less than the ones made in Japan), Sugiura, a big Japanese nut manufacturer, supplying 90% of the automotive parts used by Toyota, started to buy Jern Yao’s machines. From that point on, Sugiura has placed an order each year.” In addition, the company can design machines with different specifications according to the needs of an individual buyer. In the past, most Japanese companies were used to machines made in Japan, it was difficult for them to switch to machines made in Taiwan. Since then, Jern Yao made some changes in the dies, control panels and computerized control of its machines. Now, its machines are able to compete with machines made by the biggest three machine manufacturers of Japan in the aspects of quality, functionality and overall design. In recent years, sales of parts forming machines and nut forming machines started to pick up in Japan. After a machine is shipped to Japan, the company would send technicians to Japan to help the buyer install as well as train them on how to use the machine. The company also periodically provides spare parts and technical support after the machine is installed. “Japanese buyers are different from the buyers of the US and Europe. When there is a small problem on the machine, its buyer would be quite concerned and demand it to be solved immediately,” indicated Carol Tsai, Manager of Sales Department of the company. Japanese buyers place an utmost importance on the after-sale services of the machines they buy. As the company sells more and more machines to Japan, about 6 years ago, OSY invited several technicians and engineers who were experienced in forming machines in Japan to establish a complete MRO service network in Japan to quickly solve all machinery related problems.

Japanese Clients – The Most Difficult and Yet Most Respectable Clients in the World

“The most important task in the development of our Japanese market is maintaining our high quality.” Tsai added that each of the company’s Japanese buyers is quite strict and prudent when the buyer carries out the acceptance check of a machine. She loves and hates such mentality of the Japanese buyers at the same time. Its Japanese clients sometimes would send a thick stack of document to explain each step in detail; however, after a machine passes the acceptance check of a Japanese firm, such machine would be able to pass the acceptance check of any other firm in the world. Liu said, “Each of our Japanese buyers has its own technical requirements; therefore, we should come up with a solution to meet these requirements.” The company has to put in double or triple amount of works to meet these requirements from the time it receives an order from a Japanese buyer to the time of delivery. “OSY has become very familiar with Jern Yao and a member of our team as our frontline sales agent in Japan,” added Liu. OSY has a strong relationship building capability with its clients, “the main reason for OSY to win the trust of its clients has been its swift and outstanding services; thus, clients have an utmost trust in OSY.” In the future, OSY plans to go to the tradeshow held every two years by the Cold Forging Association of Japan in Tokyo and visit more large-size factories to enhance Jern Yao’s sales.

Heartfelt Words for its Japanese Clients

The mentality of exceptional prudence and strictness of our Japanese buyers has helped us to make our machines evolving into the “modern machines” that are easier to use, swiftly to calibrate and adjust, and save time and manpower for the users.