"Spare parts service for harvest machines -
High demands for a short season", Peter Rudzio, CLAAS Service and Parts GmbH presentation at Spare Parts Business Platform 2014.
Fin out more http://www.sparepartseurope.com/
The byproduct of sericulture in different industries.pptx
Peter Rudzio, CLAAS presentation at Spare Parts 2013
1. Spare parts service for harvest machines -
High demands for a short season
Spare parts business platform 2013 – Peter Rudzio – CLAAS Service and Parts GmbH
1 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
2. Agenda
- Who we are
– CLAAS Group and CLAAS Service and Parts
- What do our customers need?
– Aftersales requirements and customer expectations
- How do we cope with this?
– Tailored logistics concepts and processes for seasonal demand patterns
2 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
3. CLAAS at a glance
2013 – 100st anniversary of CLAAS
1913 2013
3 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
4. CLAAS at a glance
The product range
Combines
Telehandlers
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Forage harvesting machines
Software and Systems
Tractors
Service & Parts
Forage harvesters
Balers
5. CLAAS at a glance
Continous growth over the last decade
in € million or as a % of sales
1,265
1,496
1,928
2,175
2,351
3,236
5 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
2,901
2,475
3,304
3,436
2,659
56
23
36
86
131
176
248
112
77
255
316
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Sales
Profit before
taxes
6. After Sales Service at CLAAS
After Sales is the No. 1 purchase criterion when buying a harvesting machine
Question: Which criteria are essential for you when buying a combine?
0 1 2 3 4 5
spare parts supply / service
operation / handling
technical specification
distance to next dealer
individual contact with the dealer
price
test reports
manufacturer / brand
recommendation / indiv. references
financial facilities
(leasing, rate etc.)
Ø amount of points
rating with points: 1 = unimportant, 5 = the most important
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Source: DLG Praxis Monitor 08/11
7. After Sales Service at CLAAS
Parts business and service are essential for the profitability of dealers
Profit split by business unit for an average well-managed agricultural dealer (Germany)
7 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
13%
59%
1%
20,4%
New machines
Workshop
Parts and accessories
Used machines
Nearly 60 % of
operating income
from after sales!
8. After Sales Service at CLAAS
CLAAS Service and Parts GmbH (CSP) – a legal entity within the CLAAS group
Sales & Service Grain Harvest Forage Harvest Tractors
Sales Companies Product Companies
8 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
corporate functions
CLAAS KGaA mbH
CLAAS Global Sales GmbH
CLAAS Service and Parts GmbH
CLAAS Vertriebsgesellschaft mbH
CLAAS France S.A.S.
CLAAS U.K. Ltd.
CLAAS Italia S.p.A.
CLAAS Ibérica S.A.
CLAAS of America Inc.
CLAAS Argentinia S.A.
CLAAS Réseau Agricole S.A.S.
CLAAS Vostok OOO
CLAAS China
CLAAS Selbstfahrende Erntemaschinen GmbH
CLAAS Tractor S.A.S.
CLAAS Saulgau GmbH
Usines CLAAS France S.A.S.
CLAAS Hungaria Kft.
CLAAS Omaha Inc.
CLAAS India Ltd.
OOO CLAAS
CLAAS Agrosystems Gmbh Co. KGaA
9. CLAAS Service and Parts GmbH
Covering all functions of After Sales on corporate level
Profile of CLAAS Service and Parts GmbH
Functional areas:
• Product Support Service
• Product Support Parts
• Product Management • Controlling
• Technical documentation
• Logistics / SCM • IT
• Sales / Marketing • Warranty
• Pricing / Purchasing
Locations:
Subsidiaries:
• Field Service
9 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
• QM
• Merchandising
• Hamm (Parts) • Harsewinkel (Service) • Le Mans/F (regional warehouse)
• CLAAS Ukraina, Kiew
(Daughter company
for the parts business
in Ukraine)
• CS Parts Logistics GmbH
(JV with STUTE-Verkehrs-
GmbH, operating company of
the warehouse in Hamm)
Our vision: Provide the best service for farm machinery worldwide.
10. Agenda
- Who we are
– CLAAS Group and CLAAS Service and Parts
- What do our customers need?
– Aftersales requirements and customer expectations
- How do we cope with this?
– Tailored logistics concepts and processes for seasonal demand patterns
10 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
11. Requirements of our customers
High influence of seasonality
Summer:
• short harvest period,
• immediate availability of
parts required,
• Prices less important
Winter:
• focus on prices,
• Lead time with lower priority,
• Time for “active selling” of maintenance
and repair parts and labour
11 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
12. Requirements of our customers
..lead to several challenges for parts logistics
• Harvest machines work in sensitive logistics process chains
• High seasonality (~20 harvesting days p.a. for grain)
• Machines operate day and night, no weekend during harvest period
• High investment up to 500 T€, high cost in case of breakdowns
• Machines work far away from commercial / logistics hubs
• Wear and tear depends strongly on harvest conditions
(weather + soil condition!)
• Large and heavy parts
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13. Requirements of our customers
Seasonality of demand: 50% of parts sales to end customers during harvest season!
50,00%
45,00%
40,00%
35,00%
30,00%
25,00%
20,00%
15,00%
10,00%
5,00%
0,00%
Jan to Mar Apr to Jun Jul to Sep Oct to Dec
13 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
14. Agenda
- Who we are
– CLAAS Group and CLAAS Service and Parts
- What do our customers need?
– Aftersales requirements and customer expectations
- How do we cope with this?
– Tailored logistics concepts and processes for seasonal demand patterns
14 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
15. Parts logistics solutions at CLAAS
Parts distribution with multi-level distribution network
End customer
Dealer
Local Warehouses
(Same-day-Service)
Regional Warehouses
(SC‘s / Importers)
Central Warehouse
(CLAAS Service Parts GmbH)
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16. Parts logistics solutions at CLAAS
Parts logistics network Europe
Central Warehouses
CLAAS of America
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CLAAS China
Regional Warehouses
Own Parts Centres
(„Same-Day-Service“)
17. Parts logistics solutions at CLAAS
Segmentation of parts assortment for different distribution levels
Maintenance parts (e.g. filter),
Wear and tear parts (e.g. knives)
Fast moving parts
(Bearings, gears, belts,..)
Parts criticality, ease of transportation
Frequency
(orders p.a.),
differentiated per
machine type
100
100
10
3
1
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Large parts,
critical parts
(e.g. intake augers)
Medium moving parts
Smaller parts
(Bolts,
nuts, ..)
„build-to-order“
Slow moving parts
Typical dealer stock
Regional warehouse
Central warehouse
0
Product classification is defined for every new part and determines the
inventory planning parameters on central and regional level
18. Parts logistics solutions at CLAAS
Central and “emergency” regional warehouses combined to a flexible network
18 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Regional
Warehouses
CLAAS dealer
Central
warehouse
Hamm (D)
Direct shipment
+ lowest handling effort
+ no regional stock
- Higher transport cost
Delivery from regional
warehouse
+ overnight / same-day supply
+ low transport cost
- Stock in regional warehouse
- Additional handling
“Cross-Docking”
+ low transport cost
+ less handling
+ no regional stock
- medium lead time
Supply channel is selected according to required service and optimized cost
19. Parts logistics solutions at CLAAS
Seasonality requires the right setup for each season
Stocking-period Pre-season Harvest season Post-harvest
Production
(Suppliers, own
factories)
Central parts
warehouse
Hamm
Regional
warehouse
Dealers
End customers
Stocking
Fast replenishment,
Urgent orders
19 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts returns
Winter inspections Maintenance before
harvest
Immediate repairs Post-harvest check
Seasonal supply chain for parts at CLAAS
20. Parts logistics solutions at CLAAS
Special terms and delivery conditions in order to balance seasonality
Delivery
time
(from order entry to
shipment)
Delivery from central or regional warehouse,
due to distance, cross docking
Urgent order
Best possible service offer
for urgent demand
Weekly order
Continuous dealer
replenishment
„Super stock“ order
Storage in winter; stocking of the dealers
with fast moving parts long time for season
(time for payment 15.08.)
Delivery from central warehouse
Delivery from regional
warehouse; from central
warehouse if not available in
regional warehouse
minimum maximum
Discount
8-10 weeks
3-4 weeks
3-7 days
Same day
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Stock order
Attractive conditions for the
monthly replenishment
The required delivery time defines the source of parts (regional or central).
21. Parts logistics solutions at CLAAS
Different demand patterns for wear and tear and repair parts
Quantity delivered to dealers
Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep
Knife section - supplied from central warehouse
Knife section - supplied from regional warehouse
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Quantity delivered to dealers
Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep
Bearing unit - supplied from central warehouse
Bearing unit - supplied from regional warehouse
Maintenance part (high consumption):
Supplied in stock orders during winter
season from central warehouse
Repair part (medium consumption):
Lower stock orders, more urgent
deliveries from regional warehouse
during harvest
22. Parts logistics solutions at CLAAS
Seasonal stock orders help to level out volumes from central warehouse
Turnover dealer to end customer in comparison to turnover ex central warehouse
50,00%
40,00%
30,00%
20,00%
10,00%
0,00%
Pull forward dealer demands
By „super stock orders“,
very attractive discounts
payment terms up to 8 months
Jan to Mar Apr to Jun Jul to Sep Oct to Dec
Dealer to end customer
Central warehouse to retail market / regional warehouse
22 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service 22 and Parts GmbH
23. Parts logistics solutions at CLAAS – central warehouse
CLAAS PLC Hamm – operated by Joint Venture between CLAAS and STUTE (3PL)
• Flexible working hours
• Saturday as regular working day
• Regular operation on Sundays from April to October
• 3 shift operation in summer and on demand
• 24-h-standby service at 365 days/year
• 30 minutes order processing time for highest priorities
• Dedicated transport solutions to main markets
23 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
24. Parts logistics solutions at CLAAS – regional warehouses and same-day centers
France: Regional warehouse for fast supply; selected dealers with additional stock
Example France: ~250 critical part numbers at selected dealers during harvest season
C.R.A NOYAL
S/VILAINE
Ets DEBOFFE
SALEUX
DOUSSET
MATELIN
Neuville de Poitou
24 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
LOUIS DAVIGNON
BELLEVILLE SMEUSE
Midi Pyrénées
Moisson
St Jory
FAVIER Fils
CHÂTEAU GAILLARD
25. Parts logistics solutions at CLAAS – regional warehouses and same-day centers
Germany: Same-day availability with regional competence centres
Example Germany: 7 regional warehouses for 200 dealers
• Availability of about 90%, in particular critical and bulky parts
• maximum 2,5 hours distance for each dealer (200) in Germany
• Qualified CLAAS employees close to the customer
• 24 h – service at 365 days per year
• Parts collection possible around-the-clock
• Late cut-off times, departure of in-night shipments at 10 p.m.
• PLUS - Express (order cut-off 8:30 a.m., delivery until 2 p.m.)
25 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
26. Parts logistics solutions at CLAAS – inventory planning
Seasonality requires longer planning horizons
• Safety stock only relevant for
harvest season
• Progress of season has to be
taken into account for re-ordering
• Regional stocked slow-movers
have to be re-distributed after
harvest
• Demand of regional warehouses
has to be considered in central
warehouse – and pulled forward
Demand only during harvest
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27. Parts logistics solutions at CLAAS
Outlook – upcoming projects
End customer
Dealer
Retail inventory
management:
Actively optimize
dealer stocks
Local Warehouses
(Same-day-Service)
Regional Warehouses
(SC‘s / Importers)
Central Warehouse
Increase availability
at selected
competence
(CLAAS Service Parts GmbH)
centers
27 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Expand worldwide
network especially
in growth regions
Increase capacity for
further growth of
parts business by
major investments
Make them happy
with first CLAAS
service!
28. Thank you for your attention
28 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service 28 2189 th January 2012 CLAAS Service and Parts GmbH – Suppliers‘ Day CLAAS Group 20 a12nd Parts GmbH