ZTE’s Spare Part Services

For telecom operators of traditional business models, besides maintenance and guaranty services, operators have to purchase pare parts and boards for certain network equipment after the equipment has been put into service, to minimize the duration of failures, shorten network disruption, and improve the network stability and continuous operation.

However, along with the business growth, network scale expansion, and upgrading of equipment versions, the shortage of spare parts availability becomes a greater concern. It is wasteful if excessive spare parts are maintained or the inventory turnover rate stays low; while insufficient spare parts will damage the objective of emergency troubleshooting. At the same time, the management of spare parts themselves (such as inspection, version management, inventory and logistics) is also a prominent problem effecting efficiency. For maintaining the quality of spare parts, operators even have to purchase additional instruments, apparatus, test tools and special tools which are in fact used infrequently. It is difficult to eliminate idle resources and wasting.

Experience of major domestic and offshore operators indicate that the investment in maintaining proper inventory of spare parts is huge for procumbent of spare parts, administrative costs, labor costs, warehousing, tools, etc. This investment is far higher than that in spare part services. Moreover, experience suggests that spare part services offer faster response and better quality, suitable for safeguarding the network of operators.

Spare parts management solutions

ZTE maintains national, provincial and prefecture/local levels of inventory of spare parts and is able to provide spare part services customized based on customers’ requirements.

ZTE provides timely and efficient spare part services needed to ensure the proper operation of customers’ networks. ZTE will be responsible for managing the spare parts, making up the inventory, and delivering spare parts in accordance with the service agreements. ZTE updates the inventory with spare parts of the current (online) versions and periodically inspect spare parts, to help customers to avert the risks of idle spare parts due to network upgrading or optimization.

ZTE offers the following spare part services, including spare part management, spare part inspection, spare part replacement, spare part pre-replacement, etc. By offering various solutions of spare part services, ZTE is committed to reducing the costs related to the purchase, depreciation and scrapping of spare parts as well as the risks during warehousing and transport for customers.

Values of spare parts management

The spare part services provided by ZTE will help customers reduce investment in spare parts, optimize cash flows and asset structures, improve spare pats management, improve service quality, and pay more attention to their core business.

A solution package solves nine spare part problems

1.　　　　 It is unnecessary for customers to invest in their own spare part inventory.

2.　　　　 Customers do not bother about procurement of a large number of spare parts, meeting the requirement for fine management. There is no occupation of the operating capital for spare parts or loss due to wearing of inventory.

3.　　　　 Customers will enjoy quality spare parts and quick-response services.

4.　　　　 Customers are not responsible for scrapped parts due to network upgrading or optimization, and ZTE updates the inventory with spare parts of the current (online) versions.

5.　　　　 Customers do not bear the costs for making up the inventory for used spare parts or newly purchased spare parts.

6.　　　　 Customers are freed from the labor, inventory management and control and information systems used in spare part management. Existing warehouse personnel may be engaged in outsourcing, data analysis and other work of higher levels.

7.　　　　 Customers do not pay warehousing, logistics and insurance costs.

8.　　　　 Customers do not deal with repairs, and those are done by ZTE’s warehouses.

9.　　　　 Customers are not concerned for scrapping due to repairs.

Higher turnover rates of inventory of both parties

Customers need the minimum investment or no investment at all in the inventory of spare parts, and incur no related costs.

The spare part services provide statistics and analysis reports and safety stock reports for analysis of rate of on-time delivery of spare parts, turnover rate of spare par inventory, rate of overdue borrowings and rate of on-time return of borrowed spare parts. Management of spare parts and turnover is strengthened, and costs are reduced by higher efficiency.

With spare part services, the overall management costs of operators in connection with spare parts may be reduced by about 21% (The reduction differs for different networks and in deferent periods).