After-Sales Service Parts Supply Chain System in OEM Telecommunication Firms

Abstract

After-sales service is an important source of revenue and profit for OEM (Original Equipment Manufacturer) Telecom firms. A good performance of the after-sale service provides a competitive advantage for the OEM firm against their competitors in case of customer acquisition or even retention. However the design and management of the after-sales service is a challenge for many reasons, e.g. obviously the OEM can’t produce services in advance of demand, the only thing they can do is just make predictions about product failure. In the other hand, the supply process is also a source of variability. The match demand and supply process is another challenge. In order to tackle and mitigate this kind of problems this paper shows how to build the system of the after-sales service supply chain going from strategic business plan, master production plan for spare parts and labor, safety levels of inventory in consignation to customer, etc. Also we emphasize the information technology and coordination that need to exist within the different echelons into the supply chain, so this can be viewed as a system which included the repair process, the delivery process and the collect process.