Spare Parts � Importance of availability by qCx4u3

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									Spare Parts – Importance of availability




    Johan Devenyns, Sony Customer Satisfaction Europe
The Repair Network


          Repair Partners




   TECs
Creativity
  Innovation
      Customer Centricity


  What added value can CS teams – centrally
           and locally – provide?


  Competence & Professionality
  Delivering to promises
  Overall (IW and OW ) “unique”
                   CUSTOMER experience
                Sony “Touch points”
Sony is developing in various countries … a new concept to
give customers an outstanding experience (even within the
        “fast” multi-branded dealers environment) .




   Increase visibility of Sony in the multi-brand environment
     Support and control the proposition on the shop front
Demonstrate to consumers the overall unique “Sony Experience”
Providing excellent Customer Service - Together


                                       CREATE DIRECT
                        CUSTOMER
                        TO IMPROVE CUSTOMER SERVICE :
                                     MARKETING ACTIVIIES
                       REGISTRATION    focused on customer
                        • Customer claims management
                        • Short repair time
                        AFTER SALES
                        •PRIORITY
                          Temporary product replacement
                        • Product Training
                        • Home installation
                        • Connectivity with otherTRAFFIC
                                          GENERATE devices
                                      Influence of Parts
                          EVENTS
                        • Periodical check-up business
                                          - Expand
                                          Availability?
                        • Repair helpdesk
                        •…                 ADDED VALUE
                        MANAGEMENT       PERSONNEL
                                         - Train , Involve , …
How do we make sure that parts are available?
                          -
  Organisation of Parts Procurement & Distribution
 Organisation of Parts Procurement & Distribution
                  Regional Zone Parts Centres with following Responsibilities:
                  • Purchasing from other zone WRPCs (HUB)
                  • Procurement and control of local parts (PPC)
                  • Distribution of spare parts to field service in the European zone (HUB)



                                       WRPC(E)

              Kansas City                            •
                                              Brussels
                                                                                         WRPC(J)
WRPC(A)                   •                                             Shangai
                                                                                        Tokyo

                                                                          CRPC

                                                                    Singapore   •
                                                                       WRPC(S)



WRPC: World Repair Parts Centre
PPC: Parts Procurement Centre
         Procurement and control of “local parts”
Regional Zone Parts Centres with following Responsibilities:
• Purchasing from other zone WRPCs (HUB)
• Procurement and control of local parts (PPC)
• Distribution of spare parts to field service in the European zone (HUB)




Total number of
parts suppliers: 185
               Distribution - Main Parts Flows

                INBOUND                     OUTBOUND                                RE-USE
                                             Direct Distribution

                    AIR                           D-t-D
                                                   70%
                                                                                      VAIO
    Far East       80%                                                                       ALS TEC
                                                                      R-ASC         DI TGA
      SEA           SEA                       BreakBulk
                               WRPC(E)                               ASC/D
     China          10%                            20%
                                                                       TEC            FTV
                   Road                         Consol.                                      BCN TEC
    EUROPE
                   10%                             10%

                                            AIR >< ROAD                              ROAD
                                            36% >< 64%                               > 95%

                                                                   Road - Consolidation

Remarks :
•  FTV = 50% of total volume = complete re-use cycle (60% recovery)
•  Re-useable FTV Panel packaging material = 2 ~ 3 cycles
•  Shipping volume highly determined by ‘Parts Individual Packing’ (PIP)
•  High ratio of AIR inbound in function of fast & flexible replenishment of most economic parts
   inventory levels, in balance with market leading spot availability to customer demand.
                       Market Support
DIRECT ELECTRONIC order taking : IBISS Parts Line
       Parts search, enquiry on prices and availability
       Manual order entry or order file upload
       Historic order enquiry
       24/7

                                             Direct (Electronic) Parts Ordering                            98%
                                   100                                                                 2
                                                                               14                     11
                                   90
                                                           27
                                   80         43                                     EDI / Batch
                                                                               20    File Transfer
                                   70

                                   60
                                                           37
                                   50
                                                                                                      87
                                   40    %
                                              46                               66
                                   30
                                                                                                    Internet
                                   20                      36                                  (IBISS Parts Line)

                                   10
                                              11
                                    0
      Daily Volume :                         1999         2000                2002                   2005
                                                                                                     2006

6500 customer order lines                           WWW IBISS    EDI   Manual Phone, FAX, Mail

     4000 enquiries
                     Distribution : Pace & Speed
                                                                 Overnight
          100%                                                    Delivery
                                    Warehouse
          Direct                                                To Network
                                    Processing
        Electronic
        Ordering                                                   DHL
                                   Mon-Fri
                                                                   TNT
                                 07:00 – 20:00
           24/7                                                    UPS
                                                                    …

                             Avg Throughput : 2 hrs
Service level : same day dispatch                Proximity of main European Hubs :
                                                  DHL – Brussels Airport (20’)
 Standard : order entry cut off 14:00 hrs.       TNT – Liège Airport ( 60’)
 Express : order entry cut off 17:00 hrs.
        (PSE, VAIO SMB)                          Service levels :
 EUROHUB : stand by 24/7                         Economy : 48 hrs (bulky parts)
        - PSE contract support                    Express : 24 hrs (=std service)
        - PSE Broadcast events support            Dedicated services on request
                 (World Cup, Olympics, …)
               WRPC(E) Key Figures

1. Procurement
    - 1.000 Purchase order lines (daily)
    - 185 parts suppliers

2. Inventory Management & Data Control
    - 150 new parts registrations (daily)
    - 165.000 part numbers stocked
    - >500.000 part numbers registered

3. Customer Order Processing & Direct Delivery.
    - Countries         :      39
    - Avg.nr. of orderlines (daily)  : 6.500
    - Avg. nr. of deliveries (daily) : 2.000
    - Night & weekend stand-by for PSE-Eurohub and
      global broadcast events (Olympics, World Cup) : 364 days/yr
How long do we want parts to be available?
                Recommendation for Service Retention
  Country: EUROPE / ALL COUNTRIES                                           Service operation method


                                                Parts
          Product Price               Service
 Category                                        Ret.     1year    2years 3years 4years 5years 6years 7years
          (Sales Price)               Period
                                                Period
                     =< 150€            2          2      Repair   Repair

                > 150€ & =< 300 €       3          3      Repair   Repair     Repair

       ALL      > 300 € & =< 500 €      4          4      Repair   Repair     Repair   Repair
      DI – HV

      AU - TV
                > 500 € & =< 1000 €     5          5      Repair   Repair     Repair   Repair   Repair

                     > 1000 €           7          7      Repair   Repair     Repair   Repair   Repair   Repair   Repair

                                                                                 (Reflection of Major Markets Reality)

Source :                        – Quality of Service Guidelines Document

Remarks :

(1)     Repair as standard service method, supported by ‘Exchange as better service remedy’, when appropriate

(2)     (Alternative) service solutions possible beyond indicated service periods

(3)     General need for flexible interpretation
What are the challenges to guarantee parts
    availability during these periods?


         1. Market price erosion
         2. Short product lifecycles
Market price erosion & Short Product Lifecycles

• Example: LCD TV
    – Through market price erosion, the price of a new
      panel for a 2-year old LCD TV is very high
      compared to today’s market price of a new product

End-User price of LCD TV




              -20% ~ -40%




                            Panel cost of FY06 model
                                                       Panels no longer available
                                                       after production has ended
                                                        Panel Price doesn’t
                                                       follow market trend

                Apr-07                   Apr-08
What’s the solution?
  Recycling of Panels and Main Boards




• Why?
  – Short product lifetime + no parts availability after production ended
      • Consequence: no recycling  no long term availability

  – Pricing: no recycling  high parts prices for O/W repairs
      Supply and Return routes (Panels and MCB’s)
                            New or
                      Repaired Panel / MCB
                                               WRPC(E)




                         ASC
                                                      Repaired
                                                     Panel / MCB

                             Defect.
                           Panel / MCB
One Return Route

    One Supply
(& Invoicing) Route      BCN
                                               Return made
  Supported by
                                             mandatory by using
One Reporting Tool
                                               Warranty Key
                                             validation process
                Flow for Panel / MCB Return


                     ASC


           Assist               Warranty
           Report                Claim


          RMA Id                                       Based on matching with
                                                       Assist Module Exchange Report on
Central                         Warranty               Model Name, S/N and RMA Id
 DB                             Validation

           Return
          Shipment


                            BCN Validation
                           (confirmation of receipt)




                                 Warranty
                                 Payment
Procedure of Panel / MCB Return for Network
              Technician creates
               Failure Report in
              Module Exchange
                      Tool

                                          RMAid =
                                         Warranty Key


                Paper Output of
               report is attached
                  to the Panel



               Defective Panel is
                shipped to TEC.
               RMAid entered in
                    WISE for
                Reimbursement
      Physical Inspection by TEC – Web Tool
 Search                           Locate




                Data input directly from
                 Assist by Technician

Analyse                                    Validate
Service Network Control and Monitoring




         Sales Companies are able
         to see reports uploaded by
          their own service centres.
                                        But have No
                                       validation rights
How well are we doing in recycling parts?
                      LCD Panel Returns KPI in Europe
                                                                                                              GB   FR
                                               LCD Panels Returned in FY07
                                                                                                              ES   IT
 1800
                                                                                                              DE   NL

 1600                                                                                                         BE   DK
                                                                                                              SE   FI
 1400                                                                                                         PL   PT
                                                                                                              GR   CH
 1200
                                                                                                              AT   RU
                                                                                                              TR   IE
 1000
                                                                                                              CZ   NO
Qty




      800                                                                                                     BG   HR
                                                                                                              SK   RO
      600                                                                                                     EE   SI
                                                                                                              LV   CB
      400
                                                                                                              UA   YU
                                                                                                              HU   LT
      200
                                                                                                              MK   KZ

        0                                                                                                     EU   BA
            Apr-07 May-07   Jun-07   Jul-07   Aug-07 Sep-07   Oct-07   Nov-07 Dec-07 Jan-08   Feb-08 Mar-08   PE   TB

                                     Total Panel Return ratio in FY07:                                        SL   AD

                                     97.5% of total WRPC(E) Panel sales
The results of recycling: price decreases

  – Reduced prices from WRPC(E) through reviewed integration of central
    Panel Repair activity in TV factory (Barcelona)
                                                               LCD Panel Parts Price Evolution


                                        1400                                                        KDL-46V2000
                                                                                        -30%        KDL-40V2500
                                        1200                                                        KDL-32V2500
                                                                                                    KLV-32U2530
                   Panel Price in EUR




                                        1000


                                        800


                                        600


                                        400


                                        200-50%
                                               Initial Price       Jul-07      Oct-07      Jan-08




  – Additional panel price reductions introduced E/April 2008 make O/W
    panel exchange affordable for the end-users
How well are we doing in supplying parts?
         Parts Availability from Sony WRPC(E)

        100
         98   Target 96%
         96
         94   Target 93%

         92
    %




         90
         88
         86
         84
         82
         80

              FY04     FY04    FY05   FY05    FY06   FY06   FY07    FY07   FY08
               1H       2H      1H     2H      1H     2H     1H      2H    (Apr)

                           Spot Fill Rate   Fill Rate in 5 Business Days

Fill rate in 2 weeks: 98%
How well are you doing?
                Network Performance measurements
    Measured centrally:
 TAT13, Avg. cost, Quantity...

                                                                    Measured locally:
                                                                     Backlog, NPS...
                                                                    3500

                                                                    3000
                                                                                                                                                  Backlog
                                                                    2500

                                                                    2000

                                                                    1500

                                                                    1000
20%                                                                                                                                                                          Backlog I/W
                                                                     500
                                                                                                                                                                             Backlog O/W
                CIS                                                    0




                                                                           1-10
                                                                                  9-10
                                                                                         17-10
                                                                                                 25-10
                                                                                                         2-11
                                                                                                                10-11
                                                                                                                        18-11
                                                                                                                                26-11
                                                                                                                                        4-12
                                                                                                                                               12-12
                                                                                                                                                       20-12
                                                                                                                                                               28-12
                                                                                                                                                                       5-1
                                                                                                                                                                             13-1
                                                                                                                                                                                    21-1
                                                                                                                                                                                           29-1
                                                                                                                                                                                                  6-2
                                                                                                                                                                                                        14-2
                                                                                                                                                                                                               22-2
                                                                                                                                                                                                                      1-3
                                                                                                                                                                                                                            9-3
                                                                                                                                                                                                                                  17-3
                                                                                                                                                                                                                                         25-3
                                                                                                                                                                                                                                                2-4
                                                                                                                                                                                                                                                      10-4
                                                                                                                                                                                                                                                             18-4
                                                                                                                                                                                                                                                                    26-4
                541
15%                                                    SCSE
                                         NL   NORDIC    75
                                      IT 73     99
           BE                     FR 113
           29                     65
10%
      AT                                                    TR
      28        CH
                                                       PT    0 UK
                27          ES
                                                       33      27
                            170   GR
                                               PL
5%                                85
                                               128

                       DE
                      1081
0%
                        TAT 13 (2006 – 2007)
•Nearly all
countries made
improvement in   40%                                  Nordic

                        Negative
2007                                          = No. 3 improvement in
•Some made                                            Europe
marvellous
improvement      30%

•Nordic
improved by
6.3%!!!
                 20%


                                                                        IT
                                              CIS                                          PT
                                    BE                                       NL
                                                              FR                  NORDIC               TR
                 10%               AT                                                                       UK
                                                         ES                                     SCSE
                                         CH
                        Positive




                                                                   GR                 PL
                                                    DE
Portion due to
                   0%
Parts supply problems

								
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