YunnanNo.1RepairFactory,FAWPartsShopINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMs.SuPositionGeneralManagerCompanyandAddressYunnanNo.1RepairFactoryTelephone/FaxBackgroundMs.Su’sshopisoneofthreepartsshopsundertheYunnanNo.1RepairFactorythatsellFAWtruckparts.TheothertwoshopsarelocatedinotherpartsofKunmingThepartsshopsareunderthepartsretaildepartmentwithintheNo.1Repairfactory.SalesLastyear,theshophadsalesofRMB8-9million,including50%enginepartsforDalianDiesel,WuxidieselaswellasYuchaiengine.Theother50%isforchassisandothertruckpartsFordieselengineparts,Ms.SupurchasesaboutRMB1millionayearfromDalianandWuxiDiesel’ssuppliersdirectly,therestispurchasedfromDalianandWuxidiesel,whoalsomaintaintheirownpartswarehouseinYunnanNo.1factoryMostoftheFAWtruckpartsispurchasedfromFAWpartscenterwhichislocatedinthesamefactory.TheothertwopartsshopsunderNo.1factorydidnotsellasmuchpartsasthisone.Lastyear,theyeachhadsalesofaboutRMB1million.Mostofhersaleslastyearwaswholesaletootherservicestationsandpartshop.Thereissmallamountofretaildirectsales.InventoryandpurchaseMs.SumaintainsasmallinventoryofRMB500K,whichinclude500SKUs(shedoesnotsellpartsforlighttrucks)PartsorderingismadebythePartsSalesDepartmentundertheNo.1factorywhosettlesaccountwithFAWpartcenterdirectly.ProfitabilityAveragemarginisaround14%In1999,Ms.Su’sshopmadeanetprofitofRMB580KMajorcostcomponentsofheroperationare:OfficeandwarehouserentalSalaryof8employees1Operatingcostof2deliverytrucksTotaloperatingcostin1999wasRMB50KpermonthProblemswithFAWpartsAvailabilityofpartsforre-fittedtruckandvariationtrucksintroducedbyFAWinrecentyearsisabigproblemIobservedonedriverwhocameinandcomplainedthathisfivetontruckbrokedownlastDecember,anduntiltoday,hestillcouldnotfindthepartsheneed.Heplacedorderfor7FAWtrucks,twohavebeendelivered,heiswonderingwhetherheshouldtakedeliveryoftheotherfivegiventhepoorpartsavailability2