Provide cost effective solution for spare parts inventory

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Reference no: EM133354053

Questions: Following a policy reform in the European Union, all motor traders were granted better access to technical information, training, repair shop equipment and original spare parts. Consequently, as market competition increased, the aftermarket operations of automotive manufacturers faced increasing pressure. To overcome new market threats, one of the world's most successful manufacturers of premium passenger cars transformed their aftermarket logistics platform to improve service, enhance retention and increase part sales.
Customer challenge
With a distribution model configured around a single warehouse, the automotive manufacturer's service centers received only one parts delivery each working day. Automotive parts were held in a centrally located warehouse where orders were taken until 18:00 each day for them to be delivered to service centers by 8:00 the following day. Because of this, whenever an additional problem was diagnosed in the service center, the end-customer had to make a return visit or the service center would hold the vehicle for an additional day for the required parts to arrive. Both scenarios, however, did not fulfill the levels of satisfaction demanded by its end-customers. To resolve this, the manufacturer in Poland redesigned its aftermarket logistics operations, developing a network of strategic local distribution centers that provided same-day parts deliveries.
Tasks:
1. Redesign the aftermarket logistics operations by increasing customer satisfaction.
2. Establish customer satisfaction measures and measuring process (who, when, how).
3. Provide cost effective solution for spare parts inventory management.

Reference no: EM133354053

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