Case Analysis On The Transformation Of Spare Parts Supply Model In J Trading Corporation

Since the2008financial crisis, the steel industry is influenced by three mountains of"high cost, high productivity, low profit". Under the situation of high capacity, fiercecompetition of steel manufacturers, steel prices are falling. In2012, the average return onsales of member enterprise of the China Steel Association hit a low, only0.04%. Most ofsteel mills are fallen into the predicament of the loss. J trading company as a company ofsteel industry is necessary to transform because of severe situation of steel industry. Oneof the main responsibilities of J trading company for W iron and steel group is spare partssupply.Firstly, the thesis introduces about the literature theory and research results ofBusiness Model and Business Model Innovation, Vendor Managed Inventory (VMI) basedon supply chain, Vertical Integration Strategy, Spare Parts Supply of Maintenance, Repairand Operation (MRO) from both at home and abroad. Secondly, the thesis describes thepresent situation of spare parts supply mode of J trading company and the problemanalysis detailedly. Then, on the basis of thorough analysis of the problems and reasons oftraditional spare parts supply model in J trading company, the thesis puts forward the newtrain of thought about transformation model called Spare Parts Supermarket through theinvestigation and research from the perspectives of above theoretical research. Finally, thethesis explains the implementation plan and project benefit analysis of Spare PartsSupermarket and offers valuable suggestions about problems needed to deal with in theimplementation process. Under severe situation of reversed transmission mechanism insteel industry market, successful transformation of spare parts supply in J trading companycan be expected. Spare Parts Supermarket adapts to changing market requirements anddevelopment direction in order to reduce the supply cost of spare parts for J tradingcompany and at the same time to implement structure transformation of spare partsbusiness to open up the new profit growth point by out-sales of spare parts business,carrying out the J trading company’s strategy of "going out".Therefore, how to find a suitable transformation way of spare parts supply for Jtrading company and W iron and steel group has very important strategic significance. And also hope that the reference significance of the case analysis about the thought oftransformation model of spare parts supply can be provided for other firms in steelindustry.