The client corporation was founded in the Silicon Valley in 1980s by Chinese students in USA and was listed in the Nasdaq in March 2000 after its robust growth in the Chinese market. With several research and development centers in USA, China and India and extensive business coverage in the world, it is specialized in the R&D, manufacturing and sales in the modern telecommunication area. As a international high-tech corporation, the client corporation has become a IP based network solution provider and service provider  

1. How to transform China’s post-sales client service from a cost center to a profit center to increase the product service ability

2. Howe to design the organizational structure of the post-sales service departments to support its transformation to a profit center

3. How to design China’s spare parts distribution network to improve service levels and reduce inventory

4. How to improve the business operations of the planning department of the headquarter to realize the unique planning and distribution

1. The establishment of a two layer logistic network

− Layer 1 – Located in the CDC of the headquarter to store the most expensive, the least amount of and/or the least important parts to optimize the inventory assets 1

− Layer 2 – 16 CPC located in the same places as company branches to store key parts to deal with emergency ordering and basic maintenance

− The reduction of inventory volume by placing the key parts in targeted CPC in advance to support the most important users

− The emergency ordering of SPC and the advance period of CDC

2. A three dimensional ABC division for materials  

− The selection of three parameters of cost, advanced period and emergency to divide the spare parts l

− The adoption of the matrix methods for the rules and parameters used for quantifying the continuously changed inventory  

− The availability of decision making training and services regarding demand implementation, service level objective and stock replenishing for each inventory division

3. High performing inventory plan and management functions

− The centralized planning function for the headquarter to optimize the monthly inventory level

− The stock ordering and replenishing strategy for the 16 nationwide spare part centers

− Inventory tool based surplus output for process implementation

− Inventory tool based average inventory level to set the optimal inventory objective

4. The automatic generation of the inventory management plan

− A centralized planning tool in the supporting tool kit to uniformly implement the inventory management function for the 16 nationwide spare part centers

5. Inventory clearance analyses

− Monthly integration of all data into a data base(Access model)

− The identification of more partners

− Planning on the inventory strategy development and prioritization on the irregular occurrences

1. The increase of inventory fill rate and enhanced inventory management, planning and regulations

2. The cost reduction：the stock replenishing plans and strategies available for each division, thereby saving purchasing and transportation costs.

3. The increased response rate：More focus on the 20% key spare parts and faster responses to client demands. The replacement of empirical means by effective inventory plan and management methods to increase service levels

4. The improvement of productivity and work efficiency. The adoption of planning tools to help planners complete 80% materials planning within 20% time compared to the previous period and devote the rest of time (80%) to the irregular occurrences (20%)