Thursday, 27 March 2014

What is Spare Parts Logistics?

The spare parts supply chain for computers usually works in two ways:
  1. A depot in the country that will supply the required stock – often holding huge volumes of stock
  2. Country regional locations in major cities
  3. Warehouses supplying test repair centres on local or regional levels providing walk in services for customers
There are two modes that are provided through these spare part systems. The first is under warranty so the customer is able to receive the parts for free under the warranty contract. The second is where the customer needs to pay for the spare part themselves.

logisticsSupply warehouses often receive orders from the test repair centre along with local dealers who provide a service to the end customer. They place the order at the warehouse who then delivers the parts. The regional warehouse will then need to order the parts from the main country depot in order to ensure they have enough stock to keep up with demand. Therefore they need to work on their forecasting and stocking pattern to avoid delays and reduce over or under stocking.

The regional warehouses have to manage two inventory lines alongside their separate processes in order to control the original spare parts and refurbished spare parts that are supplied through vendors. Defective parts also need to be storied and sent back through the defective parts division and sometimes sent back to the original manufacture in their country of origin for a free replacement if covered by warranty.

Without the use of IT applications the management of the supply chain to manage the sales order fulfillment and the inventory management. The use of IT applications makes it possible to track warranties, manage stock and serial numbers. The management of defective parts, following the process of collection, return and refurbishment is also managed through this vital computer system.

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