Cummins builds parts distribution center to improve service

“ Cummins products are first-class, but there is still room for improvement in after-sales service levels.” On October 21, 2015, Liu Xiaoxing, vice president of Cummins and general manager of China's medium-to-heavy-duty business, said outright.

Cummins Vice President Liu Xiaoxing, General Manager of Lightweight Medium & Heavy Business in China

Indeed, in terms of after-sales service, the overall level of the industry has not reached the top level, and in particular foreign companies and joint ventures suffer more. Liu Xiaoxing said that because of policies and other factors, the past were all advanced oral products, and afterwards they provided services. The services have been in a catch-up state.

As the world's largest independent engine company, Cummins has been in China for a full 40 years, and has established five joint ventures for engine manufacturing in China. Products from import to local production, then to local development, full access to China's trucks, passenger cars and Construction Machinery and other mainstream markets. Corresponding to the products, Cummins is also working hard to improve after-sales service.

Liu Xiaoxing said: "In the future, products and services will be integrated. As a world-class engine manufacturer, Cummins must match the first-class service. Serving customers and improving customer satisfaction in the post-market is the top priority for Cummins."

Establish part distribution center to improve "minimum board"

On October 21, 2015, Cummins (China) Southwest Regional Distribution Center held its opening ceremony in Chengdu. The parts center has an area of ​​2,100 square meters and nearly 3,500 kinds of storage parts. It is estimated that the average daily receipt and shipment will exceed 200 kinds of products, and the highest daily workload can reach 500 kinds of products.

Cummins (China) Southwest Regional Distribution Center

This is Cummins' fifth regional distribution center in China. Since 2012, Cummins has established four regional distribution centers in Shenyang, Beijing, Xi’an, and Shanghai, aiming to fully enhance Cummins’ component supply capabilities in the Chinese domestic market. It refers directly to the issue of efficiency of joint ventures that suffer the most.

Liu Xiaoxing told reporters: "The parts distribution center mainly solves three problems, improving the availability of parts, rapid delivery, and reducing the total cost."

According to Zhan Li, Director of Cummins Global Logistics (China), Cummins has established a strong logistics distribution network and advanced information technology platform in the past ten years to provide fast, professional and high-quality parts to different customers around the world. Logistics Services. With the globally standardized standardized logistics operation system and powerful online intelligent information platform, each regional parts distribution center will provide integrated, optimized, and intelligent fast logistics services to customers in the coverage area, allowing customers to obtain high-quality products at low cost in a timely manner. spare parts.

For example, the Cummins Beijing Regional Parts Distribution Center that was put into use before has benefited the Beijing Public Transport Group. The relevant person in charge of the group stated: “Cummins actively communicated with us to improve various logistics issues and cooperated with the upgrade of our company's procurement system. The delivery time of the parts was reduced from the previous 15 days to 5 days, which made us very satisfied."

After the establishment of the regional parts distribution center, Cummins's response to customers has been greatly accelerated. The satisfaction rate of one order has increased from 80% to 90%, and the overall satisfaction rating of logistics services has increased by 30%.

According to reports, according to market demand, Cummins will also establish more regional distribution centers in China to further improve service efficiency.

Passive to active service upgrade

The establishment of regional distribution centers to increase the availability of parts is only one aspect. Cummins' efforts in after-sales service have more initiatives.

According to Liu Xiaoxing, there are many Cummins products, many joint venture factories, and more complete vehicle manufacturers, which brings many challenges to the after-sales service. In the past, cooperation with the vehicle manufacturers to build service stations, owners of other brands to repair inconvenience, so Cummins is building its own service network, unified standards, standardize service. At the same time, using the resources of the joint venture company can also provide personalized services.

Second, Cummins continues to improve its service level. At present, China's diesel vehicle emission standards have been upgraded from State III to State IV, and construction machinery has been upgraded from State II to State III. The maintenance of electronically controlled engines requires higher technical support.

In addition, Cummins is actively using big data, car networking and other technical means to launch Cummins C-Link remote intelligent service system, providing users with a variety of pre-judgment, reminding and other services, the past passive service upgrade to active service.

It can be said that Cummins’ relationship with users will become closer as the level of service is upgraded. In the aftermarket, Cummins will also expand a series of action plans.

According to Lin Jing, general manager of Cummins China's accessories business, Cummins will implement market-oriented product and pricing policies, from global unified prices to regional prices in China, and expand ReCon® remanufacturing product lines to provide customers with diversified product choices. Constantly cracking down on counterfeiting, purifying the market environment and protecting the interests of customers; consolidating promotional resources and concentrating on building a brand image of Cummins' pure parts.

This time, in order to tie in with the establishment of the southwest regional parts distribution center, Cummins united its five engine joint venture companies in Chengdu's Chuanhua Logistics Base to carry out large-scale roadshow activities that include “genuine and huge benefits” as slogans, including genuine and fake accessories. Display, low-cost promotions, interactive draws and other links. Through on-site communication with customers, Cummins has a deeper understanding of user needs and will help further improve service quality.

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