Foreword
The manual is used to assist all authorized JAC distributors to provide better
spare parts management.It summarizes genuine parts identification, spare
parts marketing,spare parts support policy and spare parts informatization.The
order procedure,parts order fill rate and lead time,how to make economical
inventory are all included in the manual.Wish we can make better spare parts
business with this guideline.
In case of any discrepancy between the manual and spare parts distribution
agreement, the signed spare parts distribution agreement shall prevail.
If necessary, JAC will reserve the right to alter any content of the manual at
any time without prior notice to the authorized distributors.
JAC reserves the final right to interpret the manual.
If you have any doubt, please do not hesitate to contact the following person:
CONTENTS
Chapter ⅠBrief Introduction Of JAC Spare Parts System
Section 1 Spare parts business organization structure…………………………………...01
Section 2 Spare parts support system………………………………………………………..01
Chapter Ⅱ JAC Genuine Spare Parts
Section 1 Genuine spare parts VI and element identification……………………………05
Section 2 Demonstration of genuine spare parts…………………………………………..08
Section 3 SWOT analysis of genuine and non-genuine spare parts……………………10
Section 4 Hazards of non-genuine spare parts and case show…………………………10
Chapter Ⅲ JAC Spare Parts Marketing
Section 1 Spare parts business human resources…………………………………………13
Section 2 Spare parts order and warehouse management standard……………………18
Section 3 Spare parts sales and operation management………………………………….26
Section 4 Spare parts value-added service…………………………………………………..35
Chapter Ⅳ JAC Spare Parts Support Policy
Section 1Spare parts warranty and claim policy……………………………………………40
Section 2 Spare parts training………………………………………………………………….41
Chapter ⅤJAC Spare Parts Informatization
Section 1 Online catalogue system –EPC…………………………………………………..42
Section 2 Order informatization –DMS………………………………………………………42
Section 3 Warehouse informatization – WMS……………………………………………....44
Chapter ⅠBrief Introduction Of JAC Spare Parts System
Section 1 Spare parts business organization structure
1. Brief introduction of JAC spare parts business team
1.1. Global spare parts market is divided into 4 areas: Asian and the Gulf Area, African Area,
Europe and American Area and LA PDC Area (including Peru, Panama, Venezuela,
Columbia, Uruguay, etc.). These teams mainly works on spare parts order dealing and
analysis, spare parts marketing management, satisfy market demand of spare parts, help
distributors keep reasonable stock of spare parts, shorten lead time of spare parts orders,
improve spare parts order fill rate and accuracy, etc. to improve operation level of spare
parts management.
1.2. Spare parts data management team deals with switching of part number, spare parts
that are unavailable and quotation of new spare parts.
1.3. Order management team is responsible for collecting of spare parts orders, following up
suppliers to meet spare parts demand of international market timely.
1.4. Warehouse management team is responsible for management of warehouse, including
spare parts inspection, storage, package, shipping, etc. Continuously improve package
process of spare parts to ensure the spare parts are correct and in good condition as well as
to make full use of container space.
Section 2 Spare parts support system
1. JAC set up three levels spare parts network service system to make sure spare
parts can be timely delivered to distributors.
1.1.First level：JAC central warehouse
1.2.Second level：JAC overseas regional distribution center, can supply spare parts for
surrounding market.
1.3.Third level：National central warehouse
National central
warehouse
Regional
distribution
center
JAC central
warehouse
Spare parts business
Asian and
the Gulf
area
Africa
n area
Europe
and
America
n area
LA
PD
C
area
Spare
parts data
manageme
nt team
Order
managemen
t team
Warehous
e
manageme
nt team
2. JAC central warehouse
2.1.JAC central warehouse consists of light commercial vehicle spare parts central
warehouse, heavy duty truck spare parts central warehouse and passenger vehicle spare
parts central warehouse, supply spare parts for international distributors.
light commercial vehicle spare parts central warehouse
：
16000
㎡
, 26000 items of spare
parts.
heavy duty truck spare parts central warehouse： 6650 ㎡, 13000 items of spare parts.
passenger vehicle spare parts central warehouse： 22000 ㎡, 32000 items of spare parts.
3. Regional distribution center
JAC Panama distribution center, located in Colon Free Zone, Panama, was officially put
into operation on July 2015, serving South American market. It has a two story warehouse
with an area of about 6000 square meters, consists of storage area, packing area, shipping
area and office area. The distribution center has been supplying JAC genuine spare parts for
main distributors in South American.
3.1 National central warehouse
（1）Saudi Arabia national central warehouse
（2）Mexico national central warehouse
（3）Chile national central warehouse （4）Egypt national central warehouse
Chapter Ⅱ JAC Genuine Spare Parts
Section 1 Genuine spare parts VI and element identification
1. How to identify genuine JAC products
1.1. Permanent identification of JAC: On surface of genuine spare parts there will be JAC
word and part number and supplier code information.
1.2. Genuine spare parts package identification: JAC genuine spare parts package can be
divided into three levels, the first is wooden boxes or pallets, second cartons and third plastic
bags all have JAC LOGO.
1.3. JAC genuine spare parts label identification: JAC label has security QR code and
special security design in places such as character to tell from non-genuine spare parts.
1.3.1. Permanent identification of JAC
1.3.2. Genuine spare parts package
Genuine passenger vehicle spare parts package
1.3.3. Genuine commercial vehicle spare parts package
1.3.4. Genuine spare parts label
Commercial vehicle label Passenger vehicle label
1.4. JAC service brand logo
JAC released service brand logo officially in 2016; JAC service brand slogan is serve miles
and smiles. Service brand logo is printed on spare parts label and spare parts package,
which is an important part of the identification of genuine JAC products.
Section 2 Demonstration of genuine spare parts
1. Core parts
Engine assembly Gearbox assembly Turbocharger
2. Accident parts
Body assembly Side trim Left front door
3. Quick wear parts
Window regulator Spoiler Wheel cover
4. Functional parts
Driving shaft Seats Vacuum booster
5. Electrical parts
Combined instrument Tire pressure sensor Wiper motor
6. High frequency maintenance parts
Fuel filter Air filter
7. Regular maintenance parts
Friction pad Tire
Section 3 SWOT analysis of genuine and non-genuine spare parts
Section 4 Hazards of non-genuine spare parts and case show
1. Case 1：Engine oil
Genuine spare parts Non-genuine spare parts
S
W
O
T
1. Warranty for 3-12 months.
2. Designed and tested for JAC
vehicle, safe and reliable.
3. Long service life, reliable quality,
saving time and comprehensive cost.
1. No warranty, caused security risks
and indirect injury.
2. Poor package quality.
3. Short service life, poor quality, high
cost in the same cycle.
1. With improvement of JAC brand
power, customer acceptance
increase.
2. With development of social,
customer will pay more attention to
quality.
1. Price is cheaper, poor markets
customers are willing to buy.
2. More and more China Trading
Company exports non-genuine spare
parts.
Appearance
Service condition
Attrition rate
The color is pure
and transparent
with a faint
fragrance
The engine parts
are clean, no any
oil deposition
Wear out not
badly
The color is turbid
and with a irritative
gas smell
Oil and impurity
deposition are too
much
Wear out badly and
with obvious scratch
Harm: the use of non-genuine oil may lead to early wear of engine. Poor quality of engine oil
caused insufficient lubrication during work of the engine, causing wear, poor heat dissipation
and engine carbon deposition and other issues.
2. Case 2: Air filter
Harm: The use of non-genuine air filter can easily lead to poor filtering of dust and particles,
causing early wear and reduce engine life.
3. Case 3: friction pad
After 3000 km test
filter
After 3000 kms testing,
filters are damaged
Service
condition
Quality
1, sealing effect is
good to prevent
impurities. 2,
bonding with metal
clips make the seal
more complete.
1, poor sealing will let particles go
from the gap between filter paper
and the cover, leading to poor
filter function. 2, sewn with
staples or bonded filter paper
vertically will make the impurities
from the gap between the
moldings or staples slip.
After 3000
kms testing,
filters are
intact and
clean
The surface is smooth, the friction coefficient
cannot meet standard, the friction ability is weak,
and the braking effect is poor.
Appearance
Character
Material
The utility model is made of material with abrasion
resistance and noise suppression, can keep stable
regardless influence of temperature difference, the
appearance is frosted, can offer sufficient friction
during braking, ensure good braking effect.
Big braking noise and smoke during braking,
short service life
Low braking noise and smoke and little
damage to the brake disc
The friction plate and the
metal plate are not firmly
contacted, may fell apart
during braking, and
threaten driving safety.
The friction plate is firmly
stick to metal plate, cannot
be easily disengaged,
effectively ensuring the
safety of driving.
Harm: Non-genuine friction pad may contain asbestos, cause pollution and harm and violate
laws and regulations, it has short service life and poor braking effect, may cause great harm
to personal safety.
4. Case 4: Spark plug
Harm: non-genuine spark plug electrode material under high temperature is inferior.
Insulation materials are poor or even with blisters, unable to withstand the high voltage
during ignition, causing decreased output power and severe wobble of vehicle.
Appearance
Material
The electrode and the
metal case are not
symmetrical, firing
gaps not the same, the
glaze on ceramic
insulator and welding
are not smooth.
The electrode and the metal
case are symmetrical, firing
gap is the same size, and the
glaze on ceramic insulator is
smooth, welding is smooth.
The center electrode is steel core with very poor
thermal conductivity and poor oxidation
resistance.
The center electrode is copper, nickel alloy core,
platinum or iridium core has best thermal
conductivity as well as good antioxidant ability.
Chapter Ⅲ JAC Spare Parts Marketing
Section 1 Spare parts business human resources
1. Distributor spare parts team structure
Distributors must have spare parts team to run spare parts business, the team should
have national spare parts manager, service station spare parts manager, spare parts order
manager, sales manager, purchasing manager, spare parts technician, warehouse manager
and warehouse workers. Spare parts manager is in charge of overall sales and other related
work of national market.
National spare parts manager
Service station spare parts manager
Spare parts technician
Spare parts purchasing specialist
Spare parts planning specialist
Spare parts sales specialist
Spare parts warehouse manager
Inspector
Storekeeper
Warehouse office staff
Occupation
Duty
Requirement
Spare
parts
manager
1) Set up Dept. target, set up
annual and monthly business plan
and realize control
1) With five years working
experience of Automobile spare
parts sales or more, familiar with the
spare parts market.
2) Inspect and guide to set up
reasonable spare parts inventory
level/ orderly and favorable
warehouse management.
2）With abundant Automobile theory
and structure, spare parts
knowledge, maintenance and
marketing knowledge.
3) Be responsible for organizing
and launching spare parts
marketing activities
3 ） With good management
experience, have certain English
basis, can communicate and write in
English, have certain computer
basis, master JAC systems DMS
and EPC.
4) Set out training plan for spare
parts specialist, assess the
employees performance
4）Be qualified of trainer, can carry
out training courses for spare parts
team regularly
5) Submit report forms needed by
JAC regularly
Service
station
spare parts
manager
1) Manage all the spare parts
work in service station
2) Handle the lack of the spare
parts in time
3) Achieve all kinds of working
goals according to the
requirement of the spare parts
manager
1） With five years or more working
experience of Auto spare parts
sales, familiar with the spare
parts market.
2） With abundant Automobile
theory and structure, spare parts
knowledge, maintenance and
marketing knowledge.
3） With certain management
experience/certain English
basis/certain computer
knowledge
Spare
parts
planning
specialist
1) Make spare parts purchasing
plans, and purchase according to
JAC regulation.
1 ） With three years working
experience of Automobile spare
parts sales or more
2) Deal with the price inquiry by the
sales specialist, workshop and
service adviser and quote
2
）
With certain Automobile theory
and structure, spare parts
knowledge, maintenance and
marketing knowledge.
3) Organize and file the material
requisition, inform the receiver after
receiving the ordered spare parts
3
）
Have certain organization and
coordination ability, with clear
thought, master the product features
of JAC vehicles and coding rules
4) Help the storekeeper check and
accept the type, number and price
of the received spare parts
5) Propose advice of inventory
promotion
Spare
parts sales
specialist
1) Launch the spare parts
marketing activities, ensure the
accomplishment of target
1
）
With three years working
experience of Automobile spare
parts sales or more
2) Update the price in time and
quote accurately
2 ） With certain Automobile theory
and structure, spare parts
knowledge, maintenance and
marketing knowledge.
3) Keep good relationship with
customers and manage the
customers information
3 ） Be good at communicating with
others, have strong public relation
ability
4) Statistic the spare parts sales
information regularly
Spare
parts
purchasing
specialist
1) Be responsible for purchasing
relevant spare parts according to
the spare parts manager’s order to
meet the customers’ requirements
1) With one years working
experience of Automobile spare
parts sales or more
Spare
parts
technician
1) Solve the spare parts data and
technical problems
2) Upload the replacing parts
number to the system
1) With three years working
experience of Automobile spare
parts sales or more
2) Familiar with Automobile
structure and principle
Spare
parts
warehouse
staff
（ storekee
per ，
inspector）
1) Be responsible for the
warehouse management of
acceptance and delivery ,manage
the account of spare parts
receiving/delete/keeping
1 ） With three years working
experience of Automobile spare
parts sales or more
2) Make an inventory of the spare
parts regularly, and check the
inventory with financial staff
2
）
With certain management
experience and knowledge
3) Record the missing spare parts
and inform the spare parts
planning specialist to add
3
）
Can operate the computer
expertly
4) Check and accept the
type/number/price of the received
spare parts.
5) Keep the warehouse clean and
tidy, ensure the positions of the
spare parts match the storage
number
6) Be responsible for spare parts
exterior, storage method, fire
safety, make record of the inactive
inventory
7)Propose advice on the inventory
structure
Spare
parts
warehouse
manager
1) Be responsible for the
warehouse running and
management, ensure the
information and state of spare
parts is correct and good.
1 ） With three years working
experience of Automobile spare
parts sales or more
2) Be responsible for delivering the
spare parts in the center
warehouse to each Outlet
2 ） Have certain warehouse
management experience and
knowledge
3) Check the inventory and
analysis regularly
3
）
Can operate the computer
expertly
Section 2 Spare parts order and warehouse management standard
1. How to make a spare parts order to JAC
1.1. JAC spare parts order procedure
2. Spare parts payment standard
2.1. Emergency order: The dealers should prepay deposit or ensure enough claim expense
to meet the requirement of the emergency order.
2.2.Common order/T payment，the dealers prepay part of the deposit,JAC requires the first
payment cannot lower than 30%,the rest balance payment must be paid in full once before
delivery .L/C payment, ensure the validity of the letter of credit is over 6 months or more, we
can continue to use it after amendment to it if expires, or the dealers can apply a new letter
of credit to meet the requirement of the market spare part order. FOB is not recommended
by JAC，instead, dealers can use CFR or CIF.
3. Spare parts delivery standard
At present ,JAC has cooperation with many world-famous freight forwarder company
and keep great relationship with them, such as DHL、TNT、UPS、OOCL、COSCO，JAC
has its own professional Automobile spare parts freight forwarder company, which can help
JAC deal with different problems during spare parts delivery, declaration, custom clearance,
so our dealers do not need to find other Automobile spare parts freight forwarder company,
because using other freight forwarder may cause many other problems, such as spare parts
delay, fail in declaration and custom clearance, generating extra expenses. JAC demands
dealer using CFR or CIF ， if the dealers have any questions on our company’s freight
quotation, we can check and provide the best freight quotation.
4. JAC spare parts order rules
4.1.Order by sea: twice per month, dealers can make an order in DMS on 5th and 20th per
month（can arrange two days foe making orders per month, the first order of the new product
and DMS data problems are not included)
4.2. Order by air: Once per two weeks, dealers can make an order by air on any day during
the two weeks.
4.3.Order by express：Once a week, dealers can make an order on any day during the week.
4.4. JAC spare parts order cycle time and fill rate standard
（1）Supply cycle time: Time from the date that order audited by financial dept. in DMS to the
departure date from JAC warehouse.
（2）Fill rate: the actual supply items(including the items not meet yet)/all the items in the
order×100%。
（3）Order by sea: within 40 working days, fill rate≥95%；
（4）Order by air(20 items/within 2000 USD):within 15 working days, fill rate≥95%；
（5）Order by express(10 items/within 1000 USD):within 10 working days, fill rate≥98%；
Remark: the premise of calculating the Supply cycle time is that the dealers must use JAC
freight forwarder, if not, JAC cannot control the arrival date of the container, and the
calculating period is from the date that order audited by financial dept. In DMS to the
finishing date of the packing date.
4.5. Spare parts demand preliminary preparations and replenishment rules
（1）The standard of making new products distribution list: for the first distribution list of new
products, distribute according to JAC standard，JAC spare part sales specialist will make the
list according to the vehicles holdings in the market.
（2）Regular replenishment rules: for regular replenishment, the dealers need to control the
spare parts sales and lack information in all networks, after collecting regularly and send
replenishment lists to JAC in time; according to the inventory report form, our dealers make
a replenishment list once a month to solve the spare parts shorts and customers’ complain
because of making an order until the spare parts short happens.
4.6. Spare parts reserve type’s reference standard
To ensure successful development of the market service work, we advise to reserve the
following spare parts:
（1）Maintenance parts: During the running of the vehicles, parts need to be replaced
regularly and has short lifetime. Such as different kinds of filter.
（2）Consumption parts: During the running of the vehicles, some parts must be replaces
when they expire and have failures. Such as different electronic parts: preheating
plug/sensor/relay/switch/wiper blade/fuse/combination meter etc.
（
3
）
Broken parts: During the running of the vehicles, some parts will be broken because
of wear and operating. Such as bearing/injector/piston ring/piston/cylinder
liner/pump/valve/main pin/main pin bushing/hub/brake drum/oil seal/friction plate/driven
plate/fan/cross shaft/middle support/engine seal pad/clips etc.
（
4
）
Service parts: Parts break down during certain cycle and need repair or
replacement, such as starter/generator/shock absorb/turbo/air condition
component/light/water tank/belt/compressor/front and rear axle component/engine
component/transmission component.
（
5
）
Basic parts: Some main assemblies with high price, normally they have long lifetime,
but they may brake down because of the changes of working conditions, we can repair or
replace. Such as engine assembly/crankshaft/cylinder body/rear axle, axle cover and
brake assembly/brake shoe with friction plate/gearbox cover and gearbox assembly.
（ 6 ） Failure parts: Parts broken because of accident. Such as body cover/rear
mirror/bumper/window.
Remark
：
Different markets have different features, so the dealers should make relevant
adjustments according to the market features and customers’ demand
5. Spare parts warehouse management
5.1. Regular management standard and building requirement of warehouse
(1) The warehouse should have enough storing area and height, ensure the installation of
the multilevel rack, and keep the passages of warehouse entry and delivery of cargo from
storage unimpeded.
(2) An individual area for storing dangerous goods should be built, with typical identification
and isolate them from other spare parts, ensure it comply with the national corresponding
fire control and management of dangerous goods regulations.
(3) Spare parts warehouse should have enough ventilation and anti-theft equipment; keep
the light bright/abundant/equal.
(4) An independent area for storing the claimed parts should exist in spare parts house.
(5) JAC advice to choose the fixed storage location which means each component has its
own position. The set of the storage location should consider the using frequency of the
parts, the convenience of picking and moving.
(6) The identification of storage location should be easy to understand and find.
(7) Spare parts from other dept. Is forbidden to reserve in the warehouse.
(8) Unqualified spare parts are forbidden to put on the rack in the warehouse.
(9) Protect the spare parts effectively, in principle, the spare parts should be kept in the
original package and correspond to the requirements like No reverse. For pipes like fuel pipe,
braking oil pipe, oil pipe, seal the ends with plug before putting them onto the rack. The tires
are not permitted to be stacked, use special tire rack instead; the shock absorb should be
put vertically.
(10) Prevention and treatment of spare parts corrosion during storing
① Enhance the control of the temperature and humidity in the warehouse, we can take
natural ventilation, mechanical ventilation and damp proof agents. For metal parts, additional
pad can be applied and inspect it regularly.
② Corrosion on the parts’ surface during the storing period, the storekeeper can take the
following methods to solve the problem:
For rough metal parts, we can use steel brush or abrasive cloth (paper) to polish them.
For normal precision metal part, we can use fine abrasive cloth (paper) to polish them.
For metal parts which are polished or have coating on the surface, we can use fine abrasive
cloth fine abrasive cloth with polishing paste or cleaning powder to polish.
Please use WD40 to prevent and descale the rust.
Coding rule and label setting of warehouse section and location
（1）Coding rule
（2）Design warehouse section labels/identification/card etc.
Hang/paste different labels/identification/, ensure the area 6S and locating
Seven spare parts storage rules
5.2. Spare parts warehouse entry inspection and acceptance standard
5.3. Spare parts warehouse 6S management
SEIR, SEITON, SEISI, SEIKETSU, SHITSUKE, SAFETY
Safeties implement key points:
Damp-proof/rust-proof/aging-proof/fire-proof
Make specific rules and check regularly
Specific person for specific cupboard, rules in person
Rules-breaks is forbidden, treasure your life
Inventory stock-taking
Count the spare parts regularly, to help master the numbers/types/amount of the spare parts,
avoid the parts shortage/missing/breaking/overstock or overdue, ensure the account,
material, card are the same.
5.4. Types of stock taking
（1）perpetual stocktaking
①The storekeeper make a stocktaking to the spare parts which has moves or updates to
find fault easily, this type of stocktaking takes little time, can detect the fault quickly, ensure
the account, material, card are the same effectively
② During the daily work, the storekeeper should insist the perpetual stocktaking, make a
stocktaking to the spare parts which has moves or updates, accomplish “check if there is a
movement, finish counting in the day”.
（2）periodic stocktaking
We can divide the warehouse into 6 sections, make a complete inventory to one section in
7 rules of spare parts storage
Easy to get
Every part has its number and position
position
Store according to type
Keep the special part vertical
Keep the heavy parts down
First in first out
Put parts close to the exit according to turnover cycle
Unload
inspection
Check the
freight bill
Check the
appearance
Open the box
to check
Ensure the
difference
Prove of the
logistic
Report of the
shortage and
break
one type and quantity every month, check and master whether the account, material, card
are the same and whether there is increase or decrease of sluggish spare parts.
（3）important stocktaking
Make a stocking and inspection to the warehouse spare parts for certain reasons
according to the working need, such as occupation movement, accident, warehouse
movement.
（4）complete stocktaking
①make a complete stocktaking every half a year, implement an overall stocktaking to the
spare parts assets.
②The dealers should take the complete stocktaking in the middle or end of the year.
③The spare parts dismantled from the new vehicle due to the particular reasons cannot be
included in this stocktaking.
（5）Basic principle of inventory stock taking
①The spare parts manager must in charge of stock taking ,and the important stocktaking
and complete stocktaking must be monitored by the financial staff
②The spare parts stocktaking should be accomplished in one day(the annual stocktaking
can be finished in two days).
③ the spare parts periodic stocktaking should be arranged in weekend, avoid making
stocktaking in working days, and the annual stocktaking should arranged in the weekend.
（6）Basic procedures of inventory stock taking
①preparations before inventory stock taking
Establish good warehouse storage system.
Make a stocktaking plan by storekeepers including (date, progress and counting area)
Organize stocktaking team according to the leaders and members.
Implement cleaning, move the rubbish and waste.
Divide and arrange the spare parts, make marks and records of broken and overdue parts,
record the quantity in order to following measures.
Prepare stocktaking tools.
Stocktaking
Make the stocktaking to each parts twice(including broken and scrapped parts)according to
the chart carefully .
Arrange the warehouse location and clean the parts during stocktaking.
Register the stocktaking chart carefully.
The spare parts manager should make a sample checking to the stocktaking result to ensure
the accuracy of the result.
Follow-up works after stocktaking
Upload the result of the stocktaking chart into the system; generate the stocktaking result
report after verified with the system account.
The stocktaking result report can only be handed to the financial dept. After be agreed and
signed by the spare parts manager.
Do research on the problems generated by the differences of the result, and implement
responses.
Update the inventory information after being confirmed by leaders.
Keep the stocktaking material.
（7）The result management
① if there are situations like inventory profit or losses, wastage, disorder of specification,
shortage, we should organize and recheck, make analysis and solve them in time.
②inventory profit and loss adjustment. If inventory profit or losses happen during stocktaking,
we should investigate the cause again and again, divide the responsibility. Fill in the
inventory profit or losses form, after being audited and signed by spare parts manager; send
the form to the financial dept. for approval. And the difference ratio (The shortage items ratio
and the shortage money ratio )should be controlled less than 0.3％
Warehouse orders and safe stock settings
（1）Fixed Quantity System (FQS) and Fixed Interval System (FIS).
Fixed Quantity System (FQS) definition: when the inventory level decreases to the minimum
level, make an order according to the regulated economic quantity Q to replenish the stock.
This kind of order method is applied to the spare parts which have few types and occupy lots
of money.
When the inventory level decreases to the ordering point, make an order according to the
preassigned quantity Q, passing the delivery cycle LT, the inventory level keeps decreasing,
when reaching the safe stock quantity Receive the order Q, the inventory level keeps
increasing.
Regular parts/oil need fix quantity list, and the ordering method must ensure the inventory
quantity in the warehouse R and preassigned quantity Q
R = LT×D/365
In the formula：R —— the inventory quantity in the warehouse ;
LT —— delivery cycle time;
D —— the annual quantity demand of this part.
However, in the practical work, we always meet different fluctuation, if the demanding
quantity changes, or the delivery cycle time is delayed, we have to set safe stock S, and the
inventory quantity should be applied in the following formula:
R＝LT×D／365+S
In the formulas means the safe stock.
Preassigned quantity Q is determined by Economical Order Quantity (EOQ),which
means the order quantity at the minimum stocking value. normally, the annual inventory cost
formula is like below:
Annual inventory cost=annual purchasing cost+annual storage cost+shortage cost
If in the situation that no shortage happens, the annual inventory cost=annual
purchasing cost+annual ordering cost+annual storage cost
TC＝DP+DC／Q+QH／2
TC: annual inventory cost;
D:annual demand;
P:purchasing cost of each part;
C:ordering cost ,RMB/one time;
H:annual storage cost,RMB/one time;
Q means batch quantity or order quantity.
Economic order quantitymeans the order quantity which leads the inventory cost to the
minimum level, it can be calculated by storage cost and balanced order cost. The calculating
formula is shown below:
economic order quantity
At this moment, the minimum annual inventory cost TC＝DP+H（EOQ）
Annual order times N＝D／EOQ＝
Average order interval cycle time T＝365／N＝365EOQ／D
（2）Periodic order method
Definition: it means a control method that replenish spare parts by ordering spare parts in
predetermined interval.
Periodic order method is used for the spare parts that occupy large quantities and small
money.
Target inventory level: meet demand during the ordering period and advanced period.it
contains two parts: one is the demand during the ordering period plus advanced period, and
another part is the storage quantity based on the service capability.
Q0= (T+L) r+ZS2, in the formula:
T: the order cycle time;
L: the order leads time;
R: average daily demand;
Z: use the supply rate based on the service capability to check the normal distribution form
and find the value t.
S: standard deviation of the demand fluctuation during the ordering period.
If the given standard deviation is S0，then:S2= S0*
According to the target stocking level, we can get the order quantity after making a
stocktaking:
Q=Q0－Qt
In the formula Qt— the actual inventory level in the t times check.
Safe stock calculating method
The customers’ demand is not sure, the producing procedure is not certain, the delivery
cycle changes a lot, and the service standard differs a lot, they are all key points which affect
the safe stock level .according to the classical safe stock calculating formula,
In the formula
SS—— Safe inventor， ——average advanced date， ——average daily demand， z——
standard deviation under certain service standard，σd ——average daily demand standard
deviation σL —— average advanced date standard deviation.
② The calculating principle of safe stock
The calculate of the safe stock mainly bases on some professional statistic knowledge,
make some basic assumption of customer demand and advanced date, so when in the
situation that the customers’ demand and advanced date changes. Calculate the safe stock
quantity independently. Which means，the customers’ demand meet the normal distribution,
estimate the maximum demand according to the typical level, and determine the reasonable
stock.
The typical level α in statistic is named stock-out rate, which is correspond to the service
level in logistic （ 1- α ， order fill rate ） ,typical level=stock-out rate=1-service level. For
example ,in statistic we always regard typical level as α=0.05，which means service level
0.95,stock-out rate 0.05.
Service level means the customers demand satisfaction level.
Inactive inventory management
（1）Aim at the inactive inventory, we should check the material not sold over 2 years after
stocktaking, the inactive inventory share should not be higher than 5%,when the share
becomes bigger, the spare parts manager have to enhance the management of the
warehouse.
（2）Make different plans to handle and d-stocking, organize promotion activities and hold
service month activities combining the market vehicle share, the following vehicle order, the
terminal customer distribution. Make estimated cost of inactive inventory at the beginning of
every year, normally, if the inactive inventory are not handled after a year, we need scrap
them, the scrap rate should not over 2%.
Section 3 Spare parts sales and operation management
1. Spare part sales target
JAC and dealers will confirm the sales target of the next year in December every year. The
confirmation of the target must base on this year’s sales situation and next year’s vehicle
plan.
2. Routine management
2.1. JAC requires its dealers buy the JAC genuine parts, refuse buying any other parts
applied to JAC products. The dealers have to require their networks use genuine parts,
reject using any other parts.
2.2. The dealer can develop their secondary dealers, to expand sales routines.
3. Price management
The price of JAC spare parts is shown in the DMS system. JAC ensures the price in the
system doesn’t change for half a year from the price releasing date, if the price changes
after half a year, JAC will inform all the dealers. During the management of JAC spare parts,
dealers should make a reasonable and stable price according to local commodity price, and
the profit should not be higher than the average standard of competing brand. The dealers
have the responsibility to survey on the spare parts price according to JAC requirement, and
the price made by dealers have to be audited and approved by JAC.
3.1 Promotion management
（1）Dealers can make spare parts promotion plans on their own every year, or carry out
spare parts promotion activities with service month activities. The promotion is held to satisfy
the demand of customers, improve the satisfaction and loyalty. Through this promotion
activity, we offer some profits to terminal customers and let them feel the care from JAC.
（2）There are many different methods of spare parts promotion activities, we can make a
plan through network platform, internationalize marketing method, and the detailed
promotion method can only be executed after confirmed by two sides.
4.The dealers realize “24h、48h、72h” quick response management
4.1.The dealers select excellent logistics company to guarantee the delivery according to the
establishment requirement of “24h 、 48h 、 72h” mechanism; Avoid the risk of changing
vehicles because of overtime waiting, set up “spare parts quick response mechanism” to
outlets.
4.2.The covering radius of dealers’ spare part warehouse center should be optimized
continuously, keep the covering radius up to 800km,make sure the parts can reach less than
72h,increase the satisfaction.
Spare parts network
construction plan
and system
capability reaches
the standard
Dealers realize
“24h、48h、72h”
quick response
management
Spare parts, improved
structure, accurate and
effective, the structure
is reasonable and
effective
Improvement of
the fill rate
5. CRM
5.1. The spare parts personnel from dealers should visit terminal customers regularly, know
the requirement and demand of terminal customers.
5.2. Dealers make terminal customers caring plans to enhance the relationship between
terminal customers and dealers.
5.3. Market complain management
If the terminal customers send any complaint mail to JAC complaint E-mail, JAC will
connect relevant dealers and handle this complaint until the customer stops complain.
5.3.1. Dealers spare parts sales team is responsible for spare parts satisfaction
improvement and management.
5.3.2. The dealers’ outlets are responsible for prevent and avoid customers’ complaint and
improve the satisfaction.
5.3.3. Dealers should set their own complaint hot line to know and master the problems
complained by customers and solve them in time.
5.3.4. Key index of spare parts operating
Type
Item
Operating index
Remark
Key index of
spare parts
operating
Income
Profit
Less than the average
profit of competing
brand
Customer
satisfaction
＞ 800 points （ Total
1000）
According to the market
holdings, survey 80%
customers and carry out
analysis.
Spare parts
market share
＞
60%
According to JAC
calculating standard
Spare parts
service index
Urgent order fill
rate
98%
Storage order fill
rate
95%
Spare parts
storage index
Inventory
turnover rate
＞0.2
Scrap rate
＜
2%
Inactive
inventory
＜5%
Stocktaking
difference rate
＜0.3%
Make stocktaking
regularly, if any
problems happen, solve
them in time, ensure the
information is accuracy.
Spare parts key index calculating formula
（1）Income: the total money of terminal sales, can be evaluated every month.
（2）Profit: the income-spare parts cost(purchasing money, logistic cost, custom clearance
cost, storage cost, management cost, employee salary)
（3）Customer satisfaction: Count the points according to JAC questionnaires.
（4）Spare parts market share: It is used to calculate whether the spare parts in the market
can meet the service demand.
Calculating formula: spare parts market share=spare parts purchasing cost（FOB）/planning
purchasing money(FOB)
Heavy-duty commercial vehicle business calculates the last 3 years accumulation:
Planning purchasing money(FOB)=S(N)×1%+S(N-1)×2%+S(N-2)×1.5%；
Light commercial vehicle business calculates the last 5 years accumulation:
Planning purchasing money(FOB)=S(N)×1%+S(N-1)×2%+S(N-2)×1.5%+ S(N-3)×1.2%+
S(N-4)×1%
S(N):vehicle sales money in the year.
（5）Urgent order fill rate: The actual: the actual items/total items in the orderX100%
（6）Storage order fill rate: The actual items/total items in the orderX100%
（7）Inventory turnover rate: Monthly out quantity/average monthly inventory quantity
（8）Scrap rate: Inactive material stores over 2 years and handing time over 1 year/overall
inventory cost.
（9）Inactive inventory :Do not sell over 2 years.
（ 10 ） Stocktaking difference rate: Wrong items during stocktaking/overall items during
stocktaking.
5.3.5. Evaluating standard of JAC international dealers’ spare parts operating capability
JAC will check and grade all the dealers’ networks, the grading result will affect the scores
of dealers’ star service station, spare part star and service star.
JAC international market dealers’ spare parts marketing ability evaluating standard
Primary
factor
secondar
y factor
third
factor
Evaluating content
Output of
the
evaluation
Standard of
evaluation
sc
or
e
Spar
e
part
s
basi
c
man
age
men
t
5
0
%
Spa
re
part
s
tea
m
buil
ding
10
%
key
positio
n
setting
6%
Whether it has
spare parts
manager, Spare
parts purchasing
specialist, Spare
parts planning
specialist, Spare
parts marketing
specialist, spare
parts sales
specialist and
urgent assistant
commissioner
（UAC）
Organizatio
n structure
diagram
If the dealer has 6
positions, it
scores 6 points,
each position
value 1 point.
team
trainin
g
4%
The training
attending rate
The position
qualified
certificate
spar
e
part
s
orde
r
man
age
men
t
11
%
Ration
ality of
spare
parts
order
5%
Whether the
frequency of the
spare parts
order is
reasonable M
Monthly
frequency of
spare parts
order
（
sum
of normal
order and
urgent
order):the
monthly
urgent order
ratio
（
the
proportion of
urgent order
sum in the
total order
sum
）
1
）：
the frequency
of the spare parts
order M≤2 or ≥8
times
，
2points
；
2
＜
M
＜
8 times
，
5poinnts
；
2
） ：
the ratio of
urgent order
S≤3%
，
3points
；
3%
＜
S
＜
10%
，
2poinnts
；
S≥10%
，
0poinnts
；
Urgent
order
ratio
6%
The rationality of
urgent order
ratio
（
S
）
Spare pasts
order
uniformity=o
rder times
The difference
value between
max and min≤2,3
points
，
2
＜
M≤5
，
2points
；
≥6
，
1points
；
spar
e
part
s
plan
man
age
men
t
15
%
Spare
parts
plan
analysi
s
5%
Whether
analyze the
spare parts
sales and
inventory
monthly
Spare parts
monthly
inventory
and sales
report forms
Have monthly
inventory and
sales report form
，
5points
；
only have
one form
，
2points
；
no
forms
，
0 point
；
New
model
spare
parts
order
5%
The rationality of
the time making
the new model
spare parts
order
IPL the date
of making
the order
The spare part
order should be in
advance of the
vehicle order （ at
least one week
early），5 points；
the two orders
date are the
same，3points；
the spare parts
order is later than
the vehicle order
（ less than 1
week），1point；
the spare parts
order is 1 week
later than the
vehicle order ，
0point；
Key
model
spare
parts
5%
The covering
rate of the key
model spare
parts
（
the
standard parts
are not
included
）
The
covering
rate of the
key model
spare parts
Spare parts
covering rate
（
M
）
M≥80%
，
5 points
；
50%
＜
M
＜
80%
，
3
points
；
M≤50%,1
point
；
Net
wor
k
man
age
men
t
6
%
The
dealer
s’
networ
k
spare
parts
supple
ment
2%
The spare parts
cycle and fill rate
of the secondary
agents
The report
of the spare
parts cycle
and fill rate
of the
secondary
agents
Have the monthly
or
quarterlyanalysis
of the order cycle
and fill rate
，
2
points
；
only have
one analysis
，
1
point
；
none
，
0
point
termin
al
custo
me r
Satisfa
ction
2%
Management of
the terminal
customer
satisfaction in
the market
Customer
satisfaction
report
Have monthly or
quarterly analysis
of terminal
customer
satisfaction
，
2
points
；
only have
one analysis
，
1
point
；
none
，
0
point
The
accura
cy of
the
spare
parts
order
2%
The accuracy of
the spare parts
for terminal
customer
The report
of The
accuracy of
the spare
parts for
terminal
customer
The accurate rate
of the first order
（M）：M≥99% 2
points；97%≤M＜
99% 1 point ；
95%≤M ＜ 97%
1point；M＜95% 0
point
Sale
s
man
age
8
%
Image
of the
secon
dary
2%
Whether make
VI image
according to the
requirements of
VI image
picture
make VI image
according to the
requirements of
JAC ：2 points；
men
t of
the
sec
ond
ary
deal
er
dealer
JAC
have VI but not
meet the
requirement ： 1
point；no image：
0 point
Evalua
ting
standa
rd for
secon
dary
dealer
spare
parts
2%
Whether there is
a evaluating
standard for the
secondary
dealers
Evaluating
form of the
secondary
dealer for
spare part
（
sales
volume,
wearing,
environment
, perform
standard,
promotion
）
Have the detailed
form,2 points
；
have a simple
form
，
1 point
；
none
，
0 point
；
Spare
parts
trainin
g for
secon
dary
dealer
s
2%
Whether there is
a training for the
secondary
dealers every
year
Training
record
（
picture
）
yes
，
2 points
；
no
，
0 points
；
Applic
ant of
EPC
among
the
secon
dary
dealer
s
2%
The covering
rate of EPC
among the
secondary
dealers
Survey the
relevant
information
of the
secondary
dealers,
output
picture and
other
material
Network covering
rate
（
M
） ：
M≥100% 2
points
；
50%≤M
＜
100% 1 point
；
M
＜
50% 0 point
Spar
e
part
s
mar
ketin
g
2
1
%
Spa
re
part
s
sale
s
13
%
Spare
parts
networ
k
2%
The
quantity/distribut
ion/effectivenes
s
The spare
parts
network
distribution
diagram
The covering
radius of the
spare parts
network （ M ） ：
M≤100KM 2
points;100km ＜
M≤300KM ， 1
point;300km＜M，
0 point
Spare
parts
sales
index
8%
Achieving status
of annual spare
parts sales
index
Spare parts
purchasing
quantity
（ until the
evaluating
date）
The achieving
rate of the spare
parts sales sort
by the time
M:M≤70%,0
point；70%＜M＜
100%，4 points；
M≥100% ， 8
points；
Spare
parts
sales
analysi
s
3%
Monthly spare
parts sales
analysis
The report
form of the
monthly
spare parts
sales
analysis
（
model,
region,
network,
flowing
level
）
Have the detailed
monthly spare
parts sales
analysis,3 points
；
have the analysis
but not detailed,2
points
；
none
，
0
point.
Spa
re
part
s
busi
nes
s
8
%
Spare
parts
sales
promot
ion
4%
Whether have
normative spare
parts sales
promotion
activities
Action plans
and pictures
of spare
parts
promotion
activities
（
at
least once a
year
）
Have the action
plan and carry
out:
：
4 points;
have the plan but
don’t carry out:2
points,none:0
point
Spare
parts
price
4%
The rationality
and
competitiveness
of the spare
parts price
Survey on
terminal
spare parts
price
The price is lower
than the
competing goods
from china, 4
points
；
The price
is higher than the
competing goods
from china but
lower than the
international
brand,
2points;The price
is higher than the
international
brand,0 point.
Spar
e
part
s
infor
mati
zatio
n
1
5
%
infor
mati
zati
on
15
%
Spare
parts
plan
manag
ement
inform
atizati
on
syste
m
2%
Whether have
the spare parts
plan
management
system
Survey on
the dealers’
managemen
t system,
output
pictures.
Have the spare
parts plan
management
system and
operate well ,2
points; have the
system but not
good,1 point ；
none,0 point;
EPC
syste
m
5%
Whether can
use EPC system
expertly
Operate on
the site,
output the
result
Can operate and
make orders
independently
，
5
points
，
can only
inquiry the price;3
points
；
can’t
use
，
0 point
；
DMS
syste
m
5%
Whether can
use DMS
system expertly
Inquiry the
price and
make an
order on site
output the
result
Can operate and
make orders
independently
，
5
points
，
can only
inquiry the price;3
points
；
can’t
use
，
0 point
；
Wareh
ouse
inform
atizati
on
syste
m
2%
Whether the
warehouse
apply
informatization
system
Introduction
of the
informatizati
on system
informatization
2points
，
without
informatization
system but in
great order
：
1
point
；
in bad
management
：
0
point
War
eho
use
stor
age
1
4
%
Spa
re
part
s
stor
age
8
%
Spare
parts
invent
ory
manag
ement
5%
Spare parts
inventory rate
The dealers’
turnover
rate
turnover rate M:M
＜ 0.2 ， 0 point ；
0.2≤M ＜ 0.5 3
points;M≥0.5 ， 5
points
The
rationa
lity of
the
invent
ory
3%
The A class
spare parts
proportion
A class
spare parts
proportion
M
A class spare
parts proportion
（ M ） :75%≤M ＜
85%，3 points；M
＜ 75%or
M≥85%，1 point；
Inve
ntor
y
man
age
men
t
6
%
Spare
parts
invent
ory
stockt
aking
2%
Whether make
stocktaking
regularly
Stocktaking
record
（pictures）
Quarterly
stocktaking ， 3
points ； annual
stocktaking ， 2
points ； none ， 0
point；
Spare
parts
manag
ement
standa
rd
2%
The
management
standard of
spare parts
in-out stock
Managemen
t standard of
spare parts
in-out stock
（
pictures
）
Yes,2
points;none,0
point;
Check
and
accept
the
parts
2%
Whether have
the feedback
mechanism
Spare parts
feedback
form
yes
，
2 points
；
no
，
0 points
；
Not qualified: less than 60 points; Qualified 60-75 point;Good:76-90 points
；
Excellent:
91-100 points.
Section 4 Spare parts value-added service
1. JAC spare parts accessory
1.1. Area divided and product shown
JAC genuine accessory should be shown at the high density area like entry/the reception
desk/the dispatching desk etc. Attract the customers to view, experience them with high
quality and fine accessories, stimulating.
1.2. Exhibition of some accessories:
For more accessories, please check the accessory catalog.
2. JAC oils
2.1. JAC formally began to promote the genuine oil to the global dealers from 2016,ensuring
that JAC vehicles can use the genuine oil all around the world.
JAC lubricant With API,ISO/TS16949,HSE certification
HSE
JASO
2.2. The package of the JAC genuine oils
For more detailed information, please contact our spare parts sales personnel.
Chapter Ⅳ JAC Spare Parts Support Policy
Section 1 Spare parts warranty and claim policy
1. Spare parts warranty policy
The spare parts warranty: change the spare parts for free if the spare parts have some
non-artificial quality problems during certain period.
2. The demarcation of the JAC spare parts warranty period.
The date of invoicing when the dealers sale the parts is the start date of the warranty
period.
3. JAC spare parts claim
Dealers submit the spare parts warranty claim sheet according to the requirements of JAC,
after being audited by JAC, we will input the money into the DMS system after auditing, and
the money in the DMS can be used to buy spare parts.
4. JAC spare parts warranty policy:
Type
Warranty
period
Passenger vehicle spare parts
Commercial vehicle spare
parts
A
3 months
/8000km
Relays/fuses/tires/belts/spark
plugs/friction plates/windshield
blade/alarms
Relays/fuses/tires/belts/frict
ion plates/windshield
blade/alarms
B
12 months
/30000km
Spare parts excluding A type
Spare parts excluding A
type
Note：Based on information from DMS
5. Spare parts claim management
Definition of claim scope of spare parts
5.1.Types difference
：
The parts are not same as the parts in the invoice or loading status, but
the sane quantity, no broken parts;
5.2.Quality difference:：Some break/deformation/rust/pushing/missing happens because of
package or transporting, but the quantity and type are same as the invoice.
5.3. Quantity difference: the receiving quantity is not same with the invoice, but type is same
and no broken parts.
5.4.The dealers have to feedback the claim information in 15 working days after the customs
clearanceby sea, and the JAC will give the confirmation in 5 working days; dealers have to
feedback the claim information in 15 working days after the customs clearanceby air or by
express, and the JAC will give the confirmation in 3 working days
5.5.For claim information that spare parts cannot be used in the vehicles because of the
technical improvement, the dealers feedback the information in 2 days after finding the
problems and JAC will give the confirmation in 2 working days. If the situation is true, JAC
will compensate the dealers same as the FOB price in the spare parts margin or add parts in
the next order after negotiating.
Section 2 Spare parts training
1. Aim of the training
1.1.As the international automobile market competition becomes increasingly fierce, the
automobile industry has gradually extended to service area ,good service experience from
product /sales ,which promote a lot to brand construction /customer satisfaction and
sales .and the most after-sales services need abundant spare parts to guarantee, such as
quality guarantee/maintenance/urgent service, so the spare parts supplement is the material
base of the after-sales service，and how to store the spare parts reasonably becomes the
key point of the service. So the different types of spare parts training are quite important, we
can improve our dealers marketing capability and let them know the usage of our
informational zed system, get familiar with our products by carrying out different training. Lay
a solid foundation for building the first-class spare parts team.
2. JAC spare parts training courses
2.1. At present, the spare parts training courses launched by JAC is shown as below, and
JAC can add new courses.
Spare parts training courses-spare parts specialist
No.
Type
Course name
Period
（hour）
Note
1
JAC introduction
2
Online test
2
Product
introduction
Authorized model introduction
2
Online test
3
Professional
knowledge
Spare parts technology and usage of
EPC
4
4
Spare parts order and usage of DMS
4
5
Spare parts marketing and accessory
promotion
4
6
Spare parts warehouse management
4
7
Maintenance workshop management
2
3. Methods to participate in JAC training
3.1.JAC spare parts training based on JAC global training net, provides a great benefit to the
customers through two models “go out “and “invite”. The dealers can communicate with
spare parts personnel; select proper ways to take the training, JAC will give certification to
the personnel passing the exams.
3.2. JAC training flow chart
Dealer
JAC
Report of training demand
Audit and approve
Dealer confirm the personnel
attending the training
Confirm the training location and time
and courses
Have exams after training
Award the qualified trainees with
certification
Chapter ⅤJAC Spare Parts Informatization
Section 1 Online catalogue system–EPC
1. Basic Information
1.1.EPC website：http://epc.jac.com.cn/
1.2.EPC account and password：Applied to the JAC personnel
2. EPC Sever choice
2.1. Default server is: JAC Service
2.2. Selective cloud sever: CDN Cloud Front
Dealers can find the catalog in the market from EPC, get the spare part No.in the market,
find out whether there is a change or replacement, the vehicle chassis number can be used
to reverse and find out the vehicle model and the unique equipment, we can identify which
model the part belongs to, and make a spare parts order in EPC system. The detailed
information can be seen in the EPC manual
Section 2 Order informatization–DMS
1. Basic Information
1.1. DMS website: http://dms.jac.com.cn/JACINTERDMS/
1.2. DMS account and password: Account please contact the relevant business personnel,
the initial password is 12345
Remark: please note that the browser choice, browser version is too low, will cause DMS
cannot run normally.
2. IE compatibilitysetting
The JAC DMS is applicable for Microsoft Internet Explorer 6.0 and above or other browsers
with IE kernel. We strongly suggest you to update your explorer to IE11 and set compatibility
mood under below instructions：
2.1. Open your explorer and click to find “Compatibility View settings”
2.2.Click Compatibility View settings and input website “192.168.11.41” in red address bar
and then click “Add”：
2.3. Then you will see below page, this means you have successfully added JAC DMS to
compatible website. Restart the browser and you will have normal access to JAC DMS.
Dealers can inquiry the price, the arrival status and delivery status of the spare parts from
DMS system, we can help the dealers manage their spare parts orders much more better
through DMS system, the detailed information can be seen in the DMS manual.
Section 3 Warehouse informatization – WMS
1. JAC uses WMS to manage the warehouse.
2. Implement scanning system
Use WMS system, implement scanning and packing, raise in and out efficiency and
accuracy; realize the assembly line work during output, enhance JAC spare parts
management.
