3PL MRO supply chain for spare parts

Abstract

‘Company X’, A major agricultural, construction, and forestry vehicle manufacturer, sells its products through an extensive dealer network. All the products are sold with a service warranty, and the dealers have their own service engineers for the maintenance and servicing. However, ‘Company X’ decides the suppliers for the Spare parts. Recently ‘Company X’ decided to outsource the supply chain of spare parts to TVS Logistics Services Limited, which means that TVS LSL will take complete control of the entire Spare Parts Supply Chain i.e. procurement from suppliers approved by Joh Deere, maintaining inventory, and inbound and outbound logistics. This process is different from existing projects of TVS-LSL. Currently, TVS LSL doesn’t own inventory for any of the clients. However, with ‘Company X’ TVS LSL will source from the suppliers, will manage inventory in its central warehouse, forecast demand and supply the parts to the dealers.