JinanLubinServiceStationINTERVIEWDATE:Feb29th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.ZhaoGuang-pingPositionDirectorCompanyandAddressJinanLubingServiceStation,No.191DuandianNorthRd.,Jinan250022Telephone/Fax(0531)7984287BackgroundKeyProcessesKeyIssuesBackgroundJinanLubinServiceStationbelongstoShandongLubinGroup,whichisaprivateownedcompany.CurrentlyJinanLubinServiceStationhas68employees.UpfrontinvestmentforJinanLubinServiceStationisaround1.5MillionRMB.Lastyear'sserviceincomereached4MillionRMBandSparepartsincomereached5.5MillionRMB.67newtrucksaresoldaswell.95%ofthebuyersareprivatetruckowners.Thedirector,Mr.Zhaoandtheinformationcollector,Ms.Han,wonFAW's1999nationalprizeasexcellentserviceproviderandinformationcollector.KeyprocessesAmongLubin's3MillinRMBworth,1000-SKUpartsinventory,20%arerecognisedasobsolescence.Averageturnoverofpartsinventoryis4months.LubinsetsupminimalinventorylevelforeachSKU.FAWprovidestrainingtotechniciansonetotwotimesperyear.Qualifiedtechnicianareissuedwithcertificationandallowedtoservicecustomers.Besidesbasiccustomer/serviceinformationrecord,Lubinpayssecondvisittocustomersserviced.ThismethodgainsLubingoodfameinlocalservicemarketandenhanceditsimage.KeyIssuesTheirrationalsettlementpolicybroughtconsiderablelosstoLubin.Forthewithinwarrantyservice,nofeeischargedtocustomers.Lubinreceivescustomercomplaints,handlestherepair/serviceat1sttime.Theserviceischargedatastandardhourlyfee.Togetherwithmaterialcosts,Lubinfillsthecompensationformforwarrantyservice,andsendsittoFAW.1FAWusuallywillreviewithalfayear,orevenlonger.In1999,Lubindid0.9millionRMBwarrantyservicesonbehalfofFAW,only0.6Millionissettleduptillnow.Usually,compensationispaidinformsofpartswithequalvalue.Lubincannotchoosethetypesofparts.SometimeFAWgivesengines,sometimestyres.Whentruckdesignsareupdated,plentyofpartsbecomeuseless.E.g.,Lubingetslotsofoilfilterslastyear,whicharenotusedatall.UnabletohaveturnaroundtrucksLubinexpressedstrongwishtosellnewtrucksandwasconfidentforitspotential.AccordingtoMr.Zhao,Lubin'simageisverypositivefactorforthetrucksales.However,sinceLubindoesnotanyturnovertrucksfromFAWside,itcannotconvincepotentialcustomersthattheyareacknowledgedFAWdealers.SomeLCVproducers,e.g.JilinLCV,agreedtoputtheirturnoverLCVsatLubin'sside.Mr.ZhaohopesJiefangtruckscanloosethecontroltoqualifiedservicestations.ConclusionLubinServiceStationisnew,activeandcommittedtoFAW.ItwillbeanidealpartnerofFAW,whetherintheformofsingleserviceprovider,or3in1dealer.2