Changchun_Parts.docVIP免费

FAWChangchunPartsCenterINTERVIEWDATE:March14,2000INTERVIEWERNAME:BillHeIntervieweeNameMr.YangJunsheng,ManagerCompanyandAddressChangchun,JilinBackgroundThepartssalesrevenuehasbeendecreasingoverthepastseveralyears.Themainreasonwastwofolds:ManysubstitutionssellingatveryinexpensivepricesFAW’spriceisnotoptimal.Forthesameparts,FAW’spricefromitscontractorishigherthanthepricethecontractorsellittothemarketdirectly.ThecurrentbusinessismainlybecauseoftheFAWpaidservicetotheservicestations.IfFAWdecidestopaycashinsteadofparts,wewillnotbeabletocompetewitha“mumandpap”shop.Currently,wehaveinventoryworthRMB7million.However,aboutRMB2.7millionofthe7millionareobsoleteanduselessparts.Therefore,onlyRMB4.3millionofinventoryisvalidinventory.SeveralcompaniesintheAutoTradingCityinChangchunarebigenoughtomanufacture,sell,anddistributetheFAWsubstitutionsonverylargescale.Theirpriceisusuallyonlyhalfofourprice.Wedon’thaveanysayrethepriceofparts.WearetoldbytheDept.ofPlanningandAccountingofFAWthepriceoftheparts.Wehave10employeesinthispartscenter,5managementand5clerks.Thiscenterisawarehouseonly.Itdoesnothavethesalesfunction.FAWTradingCompany’spartssalesislosingmoney.ThemarkupisdecidedbytheDept.ofPlanningandAccountingofFAW.However,wehavetopaythewarehousingcost,packagingcost,laborcostandtransportationcostourselves.Themindsetofpartsalesistoservethesalesoftrucks.Noonecareaboutitsprofitability.Ourrevenuein1999wasRMB16million.Y-T-Din2000isRMB2.4million.Wealsochangethepriceveryfrequently.Moreover,westilllowerthepricesforthosepartswecansellwithoutanyproblemsonthemarket.Butwedon’tlowerthepricesforthosepartswecannotsellinthemarket.Manypartsinthesecondcategoryisdefinitelysellableifwecanlowerthepricealittlebit.Amanagementdecisionisneededrethedirectionofourpartssales.Ifwewanttotreatitasarevenuestream,wehavetoimprovethecurrentsituationsignificantly.Ifwedon’twanttotreatitasourcorebusiness,wemayconsidertooutsourceitcompletely.1