Study On The Optimization Of After-sales Parts Supply Chain In FAW-GM

Since 2010, along with the economic development and transformation of consumption concept,the domestic industry has been unprecedented developed. The automobile production in 2014 reached 23 million, have an increase of 7% compared to 2013. Civil and private car has reached 269 million vehicles, an increase of 16% compared to 2013. With the rapid development of automobile market, automobile accessories sales also increased, auto parts sales reached 3 trillion and 440 billion of China in 2014, an increase of 13% compared to 2013. From the above data we can see that the auto parts sale is a great source of profit for automobile industry.Nowadays auto parts industry supply chain management is becoming a booming industry which is full of opportunities and challenges. As a network node of supply chain, the reasonable location of the distribution center is not only affect the distribution center operating costs, operating performance, competitive strategy and the future development, but also affect the entire supply chain logistics cost, logistics strategy and competition strategy. Supply chain management research for spare parts inventory management can effectively guide the auto parts manufacturers of the business environment, market development, foster strengths and circumvent weaknesses, assess the situation, seize the moment, and gather more intense market competition in the future always maintain their advantage. Transporters in the supply chain management are very important to spare parts for timeliness and accuracy. Selection of good operational ability and sense of responsibility transport operators can make the whole supply chain network develop more perfect.Therefore, in-depth study the related theory of automobile spare parts supply chain, combined with the status quo and development trend of the automobile and accessories market in China, then optimization the basic model and operation strategy of automobile customer service parts supply chain in China, has a very important practical significance.Based on the customer service parts supply chain of FAW-GM,We analyze the operation characteristics and the status quo of this company.Analyze the existing problems in the supply chain of the company’s after sales parts. Firstly due to the historical reasons, and the lack of overall concept of the supply chain, company warehouse location is not reasonable, fixed cost and variable cost is high, the efficiency of warehouse staff is low. Secondly irrational purchasing behavior and work habits lead to unreasonable warehouse structure, inventory turnover rate is low. Finally, the market demand and the information are not shared caused low company’s accessories sales and high proportion of transport costs.In the aspect of optimization design, firstly we analysis and improve the accessories Center Library location, inventory structure, major items of operating costs and existing problems in FAW-GM. In the optimization design, we find an reasonable location of parts center library in order to reduce the freight and in a timely manner to meet the market demand, which also can reduce the rent, labor and equipment costs. Secondly, adjust the structure of spare parts inventory, improve the company’s inventory turnover rate, to make the whole supply chain inventory structure more reasonable accessories. Finally, a reasonable adjustment in the receiving and processing orders, shipping methods, so as to reduce the company’s operating costs, improve customer satisfaction rate and satisfaction.