Spare Parts Importance of availability

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Spare Parts Importance of availability

• Johan Devenyns, Sony Customer Satisfaction Europe

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The Repair Network
3
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

4
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
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Providing excellent Customer Service - Together

• TO IMPROVE CUSTOMER SERVICE
• Customer claims management
• Short repair time
• Temporary product replacement
• Product Training
• Home installation
• Connectivity with other devices
• Periodical check-up
• Repair helpdesk

CUSTOMER REGISTRATION
CREATE DIRECT MARKETING ACTIVIIES focused on
customer
AFTER SALES PRIORITY
Influence of Parts Availability?
EVENTS
GENERATE TRAFFIC - Expand business
ADDED VALUE PERSONNEL - Train , Involve ,
MANAGEMENT
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How do we make sure that parts are
available?-Organisation of Parts Procurement
Distribution
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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)

WRPC(J)
Kansas City
Brussels

Tokyo
WRPC(A)
Shangai
CRPC

Singapore
WRPC(S)

WRPC World Repair Parts Centre PPC Parts
Procurement Centre
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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
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Distribution - Main Parts Flows
INBOUND
OUTBOUND Direct Distribution
RE-USE
AIR 80
D-t-D
VAIO DI TGA
70
Far East SEA China
ALS TEC
R-ASC ASC/D TEC
SEA 10
BreakBulk
WRPC(E)
20
FTV
BCN TEC
Road 10
Consol.
EUROPE
10
ROAD gt 95
AIR gtlt ROAD 36 gtlt 64
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.

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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

98
Daily Volume 6500 customer order lines 4000
enquiries
2006
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Distribution Pace Speed
100 Direct Electronic Ordering 24/7
Warehouse Processing Mon-Fri 0700 2000
Overnight Delivery To Network DHL TNT UPS
Avg Throughput 2 hrs

• Service level same day dispatch
• Standard order entry cut off 1400 hrs.
• Express order entry cut off 1700 hrs.
• (PSE, VAIO SMB)
• EUROHUB stand by 24/7
• - PSE contract support
• - PSE Broadcast events support
• (World Cup, Olympics, )

• Proximity of main European Hubs
• DHL Brussels Airport (20)
• TNT Liège Airport ( 60)
• Service levels
• Economy 48 hrs (bulky parts)
• Express 24 hrs (std service)
• Dedicated services on request

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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
• - gt500.000 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

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How long do we want parts to be available?
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Recommendation for Service Retention
DI HV AU - TV
(Reflection of Major Markets Reality)

• Source Quality of
  Service Guidelines Document
• Remarks
• Repair as standard service method, supported by
  Exchange as better service remedy, when
  appropriate
• (Alternative) service solutions possible beyond
  indicated service periods
• General need for flexible interpretation

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What are the challenges to guarantee parts
availability during these periods?

• Market price erosion
• Short product lifecycles

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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 todays market price of a new product

Panels no longer available after production has
ended ? Panel Price doesnt follow market trend
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Whats the solution?
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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

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Supply and Return routes (Panels and MCBs)
New or Repaired Panel / MCB
WRPC(E)
ASC
Repaired Panel / MCB
Defect. Panel / MCB
One Return Route One Supply ( Invoicing)
Route Supported by One Reporting Tool
BCN
Return made mandatory by using Warranty Key
validation process
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Flow for Panel / MCB Return
ASC
Assist Report
Warranty Claim
RMA Id
Based on matching with Assist Module Exchange
Report on Model Name, S/N and RMA Id
Central DB
Warranty Validation
Return Shipment
BCN Validation (confirmation of receipt)
Warranty Payment
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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
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Physical Inspection by TEC Web Tool
Search
Locate
Data input directly from Assist by Technician
Analyse
Validate
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Service Network Control and Monitoring
Sales Companies are able to see reports uploaded
by their own service centres.
But have No validation rights
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How well are we doing in recycling parts?
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LCD Panel Returns KPI in Europe
Total Panel Return ratio in FY07 97.5 of total
WRPC(E) Panel sales
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The results of recycling price decreases

• Reduced prices from WRPC(E) through reviewed
  integration of central Panel Repair activity in
  TV factory (Barcelona)
• Additional panel price reductions introduced
  E/April 2008 make O/W panel exchange affordable
  for the end-users

-30
-50
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How well are we doing in supplying parts?
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Parts Availability from Sony WRPC(E)
Target 96
Target 93
Fill rate in 2 weeks 98
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How well are you doing?
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Network Performance measurements
Measured centrallyTAT13, Avg. cost, Quantity...
Measured locallyBacklog, NPS...
STRONGLY ADVISED FOR LARGE RASCs (Whenever
possible)
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TAT 13 (2006 2007)
Nordic No. 3 improvement in Europe

• Nearly all countries made improvement in 2007
• Some made marvellous improvement
• Nordic improved by 6.3!!!

Negative
Conclusion Besides some occasional parts supply
problems, Long repair times have also other causes
Positive
Portion due to Parts supply problems