Economic Impact of Sri Lankan Attacks
The small island nation of Sri Lanka now finds itself in the throes of one of the deadliest terrorist attacks that the world has ever seen. On 21st April, i.e. on Easter Sunday, suicide bombers attacked heavily crowded churches as well as hotel lobbies. They ended up killing close to 350 people and destabilizing the […]
Communications Driven and Group Decision Support System
Globalization has not only expanded the product markets. It has also made organizations geographically more dispersed. Therefore, the way the business is done and decisions are made has also changed significantly. Collaborative decision-making has become more valuable than ever. This is why there is an increased emphasis on developing and implementing communications-driven group decision support […]
Strategic Processes – Meaning and its Features
These are the top level processes that an organization is exposed to. These include tasks that need a high level of intellectual capability and will have wide spread effects in the structure and functioning of the organization. The nature of these processes can be compared to those that the human brain performs. Here are some […]
Where Does the United States Go From Here and the Impact on Business and Economy?
How the Events of Mayhem on Capitol Hill Shocked Americans and the World as Well As the world watched in horror at the images of mayhem and destruction that were underway in the United States, many were left wondering as to what has become of the World’s Oldest Democracy and a Beacon for Liberty and […]
Focusing on Forecasting
Companies all around the world are focused on quarterly as well as annual results. As soon as these results are announced, the financial markets give some sort of reaction. If the results are good, the stock prices rise. If not, stock prices tend to fall. However, in either case, the stock price is linked to […]
In a computer spare parts supply chain, usually the network consists of the country depot that stocks all the parts required to support the field. The number of parts in such depots run very high depending upon the volume of sales and can range from 15000 SKUs to 35000 SKUs, depending upon the model and vendors.
In a country, regional locations are housed in all states or major markets normally in all major cities. At the regional and local levels, the parts supply warehouse is often combined with test repair centers where customers can walk in and submit their laptops or products for repair.
Spare parts are delivered out of these outlets in two modes:
One is under warranty service where the customer has bought a warranty contract with the company including free replacement of spare parts. In such situation, the good part is issued by the warehouse instead of receipt of a defective spare part.
The other mode is sale of part where the customer pays for a spare part and makes the purchase.
Besides the Test Repair Centers, larger markets also have authorized service agents and dealers located all over the city. The regional warehouse receives orders for parts from these dealers who service the end customers. The orders can be under warranty free replacement or sale of part. Warehouse accordingly services orders and delivers parts locally to the dealers and collects the defectives back.
The regional warehouses, in turn, requisition parts from the country depot based on their forecast and stocking pattern.
In case of parts supply warehouses, commonly they contain two different warehousing divisions’ namely good part and defective parts store.
In case of good spare parts, the warehouses maintain and manage two separate inventory lines as well as separate processes to manage original spare parts procured from vendors and refurbished spare parts repaired locally through third party repair vendors.
Against each good part supplied, a defective part is taken back which travels through the various stocking points to the warehouse’s defective parts store. The defective parts stores issue parts to identified vendors for repair and once repaired issue back the refurbished parts to good store for inventory.
In some cases the defective parts if still under warranty are grouped together and re-exported back to the vendor overseas for free replacement under warranty.
The entire supply chain network of spare parts involves the Logistics department of the principle company, inventory planners, test repair center teams and outsourced 3PL warehousing partners who manage to warehouse and local logistics and designated dealers, authorized service representatives and repair vendors.
The entire supply chain rides on a strong backbone of IT application that manages sales order fulfillment on one end and inventory management at the other end. The applications are robust with enhanced features to be able to manage and track warranties and also SKU wise stocks and serial nos. Defective parts collection and management is as important as good part management and carries the same value as it becomes a refurbished good part once again after repairs.
Your email address will not be published. Required fields are marked *
