XiamenFAWServiceStationINTERVIEWDATE:5May2025INTERVIEWERNAME:JaneXuIntervieweeNameMr.Zheng,StationManagerMr.Chen,DachaiManagerinXinlinStationCompanyandAddressXiamenXinlinJiefangtruckServiceStationTelephone/Fax0592-6280996BackgroundXiamenFAWServiceStationisasubsidiaryofXiamenTransportation&DevelopmentCompanyTotalinventoryvalueisRMB1million(includingRMB500KFAWcomponentandRMB600KDachaienginecomponent)Thereare5Dachaipeopleworkinginthestation,theyaremainlyresponsiblefortheDachaienginesales,service,componentandpaymentbusiness;TheirsalaryispaidbyDachai.DachaiandXichai’smarketsharerationinFujianisaround1:9Profitrateofcomponentisaround15%KeyIssuesMr.ZhengthinkthenewlybuiltJiguanComponentcouldn’treplacetheformerFAWFujiancomponentcenterfromthefollowingaspects:It’snowhardtogetsomeemergencypartsonatemporarybasis:FormerFujianComponentcenterisnota100%profitcenter,ithadrelativelyabundantcomponentstockthanJiguanhasnow.Jiguanonlypurchasescomponentsmonthlyorderedbyservicestationandthoseprofitablepartsaccordingtohisjudgement,Whenservicestationisrunshortofsomeunpopularcomponentinventory,it’shardtopurchasefromJiguanonatemporarybasis.Notes:Servicestationisnotabletoorderthepropercomponentsitneedsinthenextmonthbecauseof:1)Asmall-scaledservicestationislackofabundantcapitalforcomponentpurchasing;2)It’shardtopredicttheoverallcomponentdemand,especiallythecomponentdemandfromthepassbytruckAsaprofit-orientedcomponentprovider,Jiguanhasthetendencyofpurchasingthecomponentfromotherresources,whichmightbeapotentialtroubleforsomeparts’futurewarrantyserviceNotes:SomeFAWout-sourcedcomponentmanufacturersdidn’tprovideclearproductstampontheparts,whenservicestationtake1themforthewarrantycompensation,FAWwillnotrecognizethemasthecomponentwithinwarrantyscopeMr.ZhengissatisfiedwiththeengineserviceprovidedbyDachaiincomparisonwiththeserviceprovidedbyFAWDachaiisquickinadjustitsinventorystructurewhenthenewproductsaredeveloped.Forthoseemergencypartswhichcouldn’tfindinwarehouse,Dachaiwillevendeliverthembyplanein1to2daysNotes:Fortheservicewithinwarrantyperiod,servicestationtaketheengine/partsfromDachaiandreportbacktoFAW,FAWwilldealwithDachaionthecompensationpayment.DachaiadjusteditsinventorystructurequicklyoncethewarehouselevelchangesattheservicestationsidesWishesFAWshouldstillsetacomponentcenterdirectlyunderFAWwhichprovidearelativelyfullarrangeofcomponentsFAWcouldspeedupitscompensationprocesswithservicestationsFAWshouldprovideservicestationwiththeupdated-versionofcomponentinformationforthosenew-typetrucks.2