SPARE PARTS BUSINESS

- A/S Service Department of CIC-

2019 年 7 月版
01 SPARE PART SUPPORT TEAM 02 SPARE PARTS IT SYSTEM

03 SPARE PARTS ORDER PROCESS 04 INVENTORY MANAGEMENT

05 PARTS TECHNICAL SUPPORT 06 BASIC PARTS KNOWLEDGE

07 GENUINE PARTS 08 PRICE, PROMOTION & MARKETING

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SPARE PART SUPPORT TEAM
1. Organization Structure
Name: Ms. Qunee Ren / Ren Quanlin
E-mail: renql@changan.com.cn
Tel: 0086-23-6035 0439
Responsibility: Parts Supply

Name: TBC
E-mail:
Tel:
Responsibility:Parts Supply
Name: Huling
E-mail:huling@changan.com.cn
Tel:0086-23-6035 0424
Mobile & WeChat: 13500310800
Name: Mr. Leo Jiang / Jiang Mingjun
Responsibility:Parts supply & Parts tech
E-mail:jiangmj2@changan.com.cn
support
Tel:0086-23-6035 0424
Responsibility:Parts catalog & Parts
tech support

Name: Ms. Wang Yunlu

E-mail:chenyf@changan.com.cn
Tel:0086-23-6035 0424
Responsibility:Parts catalog & Parts
tech support

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SPARE PARTS IT SYSTEM
EPC guide

2. EPC system (Electronic parts catalog) manual

Route Address
Website address http://at.changan.com.cn:9111/
China Unicom http://113.204.207.86:9111/
IP address
China Telecom http://183.66.200.206:9111/
 CIC provide online EPC to distributors and dealers, pls use ID and
password to enter.
 For new dealer, please contact Sales Manager to get your ID and
password.
 If forgot password, please contact Mr Jiang Mingjun to renew.
Jiangmj2@changan.com.cn

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SPARE PARTS ORDER PROCESS
3.1 Order type
Order type code Order type Order frequency Shipping Mode

S Regular Order Once per month S, A

(monthly stock order)
E Emergency Order Twice per month A, D
C Claim order - S, A
I New Model Initial Order New Model launch S, A
W Quality Order - S, A
V VOR Order Once per week D

3.2 Ship mode

Ship Mode Description Remark
A Air
S Sea
D Courier Courier company is chosen by Changan

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SPARE PARTS ORDER PROCESS
3.3 Order process
 Distributor need confirm PI and
make payment, otherwise the order
will not be allocated

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SPARE PARTS ORDER PROCESS
3.4 Order process
3.4.1Regular order
 For regular order, lead time from order confirm&payment to parts finish packaging ready for delivery.
 Regular order will be confirmed monthly.
 Order size need be kept in 500 lines and 150K USD.
 Fill rate will be higher than 90%, line fill rate
 Lead time 25 working days. For each extra 100K USD, needs extra 2~5 working daysfrom Confirmed order&made
payment to finish packaging ready for delivery).

3.4.2Emergency order
 Will be confirmed weekly.
 Order size need be kept in 50 lines(totally for each month). and need reduce emergency order for big size parts
such as bumpers, panels, windshields. And do not order dangerous such air bags.
 Fill rate will be higher than 90%, line fill rate.
 Lead time 7 working days. For extra order line, needs more working days.(from Confirmed order&made payment to
finish packaging ready for delivery)

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SPARE PARTS ORDER PROCESS
3.4 Order process
3.4.3VOR order
 Here will be no order limited for VOR order, but should be really VOR.
 Distributor need send VOR order and VOR Info. to CHANGAN as soon as Dist. Confirmed the VOR requirement.
 CHANGAN will arrange delivery in two working days if here’s inventory in PDC.
 Or will arrange delivery in five working days, in case that here’s China local RDC have stock.
 Or will feed back in case that all network are out of stock and need suppliers to manufacture.

3.4.4NEW Network INV. order

 Distributor place new network inventory order according the network extend plan.

3.4.5New model launch INV. Order

 Changan and Distributor will discuss and confirm the New model launch Order as new model launch schedule.
 Changan suggest the first IPL order need kept in 50 lines fast moving parts, shipping together with first batch
vehicles. And shipping the second order(500~600lines) in next month. As the R&D will frozen BOM while first
vehicle order manufacture, and not enough time left for parts teams finish full list parts order.

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INVENTORY MANAGEMENT
4.1 INVENTORY MANAGEMENT THEORY

INVENTORY CYCLE

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INVENTORY MANAGEMENT
4.2 SOQ & S/S

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INVENTORY MANAGEMENT
4.3 Definition of Double Bin System

Setting The Fixed Order Quantity & Reorder Point

In Case That Stock Quantity meet the Reorder Point

Automatic P.O by System (Fixed Order Quantity

: R.O.P
Stock : Fixed Order Quantity(Q)
Q
Q
1 2 3 4

LT LT Time

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INVENTORY MANAGEMENT
4.4.1 Physical Inventory Inspection - Method
: Matching stock quantities between ledger and real

1) Regular: Regularly performed as planed ( 1~2 times/ year )

TYPE
2) Irregular: Performed irregularly, if needed

Method Cycle Inventory : Inspection while operating warehouse

1) Ledger : Generally performed by most companies

2) Real Parts : On specific purpose, count real parts and then update a
Standard ledger
e.g) In case when a vendor goes bankrupt and Changan undertake
vendor’s total stock

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INVENTORY MANAGEMENT
4.4.2 Physical Inventory Inspection - Process
By Cycle Inventory- ( Two times in a year)

Selecting Objective Parts By Inventory DATA

Conducting Physical Inventory and up-dating results

When discrepancy happens, if necessary, recount

Discrepancy- Reflecting in ledger as abnormal profit or

cost

- Excess: Abnormal Profit

- Shortage: Abnormal Cost

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PARTS TECHNICAL SUPPORT
5.1 Parts Technical support operation process

 Ask for
technical
support by
 Ask for Technical
technical support
support report

Dealer Distributor Changan

 Reply the  Reply the
solution solution
within 24 within 24
hours hours

 Distributor should analyze and make the solution when receive the enquire from the dealer, and reply within 24 hours;
 When distributor is unable to solve the parts technical problem reported by dealer, fill in Parts Technical Support Report and
submit to Parts Tech Engineer of Changan,Changan will reply within 24 hours;

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PARTS TECHNICAL SUPPORT
5.2 New Model launch process
Process New Model launch Spare parts Business Process

Market Depart.
Time Sales Depart.
Service Depart. Logistic Depart. Dist.

1. New Model launch

Immediately Plan Decision

-190 Days 2.1 Catalog develop

-145 Days 3.1 IPLdevelop

-130 Days 3.2 IPL launch

-116 Days 4. Submit IPO & payment

-115 Days 5.1 IPO prepare

-80 Days 2.2 Catalog finish

-75 Days 5.2 IPO Transfer

JOB 1 2.3 Catalog launch

6.1 IPO arrive &

-30 Days customs clearance
Dealer should storage parts as new model launching process in advance to ensure parts arrive together
with schedule.
Dealer should follow process, submit IPO (Initial Parts Order) and make payment 3.5 months before new
-10 Days 6.2 IPO Distribute
model launching day to ensure parts deliver & arrive on time.
Actual plan of Process 1.6.1 6.2 6.3, dealer can adjust as time schedule of local market, and feed back to
New Model
CIC service dept to ensure new model parts arriving on time. 6.3 Dealer accept IPO
Launch

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BASIC PARTS KNOWLEDGE
6.1 Vehicle Identification Chart - VIN
WMI VDS VIS
□□□ □□□□□■ □□○○○○○○
 A Vehicle Identification Number, commonly abbreviated to VIN, is a unique serial number used by the
automotive industry to identify individual motor vehicles.
 VINs were first used in 1954. From 1954 to 1981, there was no accepted standard for these numbers, so
different manufacturers used different formats.
 In 1981, the National Highway Traffic Safety Administration of the United States standardized the format. It
required all over-the-road-vehicles sold to contain a 17-character VIN.
 Modern-day Vehicle Identification Number systems are based on two related standards, originally issued
by the International Organization for Standardization (ISO) in 1979 and 1980; ISO 3779 and ISO 3780,
respectively. Compatible but somewhat different implementations of these ISO standards have been
adopted by the European Union and the United States of America.

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BASIC PARTS KNOWLEDGE
6.2 Vehicle Identification Chart - WMI
WMI VDS VIS
□□□ □□□□□■ □□○○○○○○
WMI World Manufacturer Identifier
□ □ □
3rd Manufacturer
2nd Country
1st Region

The Society of Automotive Engineers (SAE) in the U.S. assigns WMIs to countries and manufacturers.
The 1st character of the WMI is the region in which the manufacturer is located.
The 2nd character of the WMI is the country in which the manufacturer is located. also assigned by SAE.
The 3rd character is the manufacturer code assigned by each country.

wmi 17
BASIC PARTS KNOWLEDGE
6.3 Vehicle Identification Chart - VDS
WMI VDS VIS
□□□ □□□□□■ □□○○○○○○
VDS Vehicle Descriptor Section
□ □□□ □ ■
9th Check digit
8th Engine character
5th~7th Vehicle character
4th Brand
The 4th to 8th character are as below:
code 4th 5th 6th 7th 8th

BUS Brand Length Safety system/Body type Brake & AC Engine

CAR Brand Body type Safety system Transmission Engine

TRUCK Brand Max total weight Body & chassis type Brake & AC Engine

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BASIC PARTS KNOWLEDGE
6.4 Vehicle Identification Chart - VIS
WMI VDS VIS
□□□ □□□□□■ □□○○○○○○
VIS Vehicle Identifier Section
□ □ ○○○○○○
12th-17th Sequential number
11th Plant Code
10th Model year encoding
Model year encoding Plant code Plant
Code Year Code Year Code Year Code Year Code Year Code Year
A= 1980 L= 1990 Y= 2000 A= 2010 L= 2020 Y= 2030 A Changan
B= 1981 M= 1991 1= 2001 B= 2011 M= 2021 1= 2031
C= 1982 N= 1992 2= 2002 C= 2012 N= 2022 2= 2032
E Changan light duty truck
D= 1983 P= 1993 3= 2003 D= 2013 P= 2023 3= 2033
F Nanjin Changan
E= 1984 R= 1994 4= 2004 E= 2014 R= 2024 4= 2034
F= 1985 S= 1995 5= 2005 F= 2015 S= 2025 5= 2035 G Hebei Changan
G= 1986 T= 1996 6= 2006 G= 2016 T= 2026 6= 2036
H= 1987 V= 1997 7= 2007 H= 2017 V= 2027 7= 2037 H Changan Bus
J= 1988 W= 1998 8= 2008 J= 2018 W= 2028 8= 2038
K= 1989 X= 1999 9= 2009 K= 2019 X= 2029 9= 2039
L Landwind

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BASIC PARTS KNOWLEDGE
6.5 Changan vehicle types code Chart
□□ ◇◇◇◇ □□□ ■■
Code defined by
manufacture
Special vehicle type
Main parametric
Manufacture(2 or 3
letter)
□ By Letter
◇ By Number
■ By Letter and/or number
SC
Changan

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 BASIC PARTS KNOWLEDGE
6.5 Changan vehicle types code Chart
□□ ◇◇◇◇ □□□ ■■
Code defined by manufacture
Special vehicle type
Main parametric
Manufacture(2 or 3 letter)
◇ ◇◇ ◇

Vehicle type Main parametric Series code

code type code type
 type1 、 2 、 3 、 4 、 5 is total weight by By Number
1 Truck 5 Special Ton From 0 、 1 、 2……etc.
 Type 6 is total length
2 cross-country 6 Bus  Type 7 is engine displacement by liter ×10
 Add 0 before number if not enough digit
3 Self unload 7 Car

4 Draw vehicle

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BASIC PARTS KNOWLEDGE
6.5 Changan vehicle types code Chart
□□ ◇◇◇◇ □□□ ■■
Code defined by manufacture
Special vehicle type
Main parametric
Manufacture(2 or 3 letter)
■■
Code defined by manufacture, if here’s Sth. Different to be
define, such as petrol & diesel, Euro 3 & Euro 4, Different
□ □□ Wheelbase, Etc.

Purpose Chart
Code Type Code Type Construction Chart
X Van Base on Chinese National Standard GB-T 17350

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BASIC PARTS KNOWLEDGE
6.6 Engine Identification Chart
☆ ◇ □□ △△ XXXXXX ☆
End Sign
Sequential Number
Status
Engine Model Code
Produced Year Encoding
Start Sign
Engine Model
Code Year Code Year Code Year Code Year Code Year Code Year
A= 1980 L= 1990 Y= 2000 A= 2010 L= 2020 Y= 2030
B= 1981 M= 1991 1= 2001 B= 2011 M= 2021 1= 2031
C= 1982 N= 1992 2= 2002 C= 2012 N= 2022 2= 2032
D= 1983 P= 1993 3= 2003 D= 2013 P= 2023 3= 2033
Model year encoding
E= 1984 R= 1994 4= 2004 E= 2014 R= 2024 4= 2034
F= 1985 S= 1995 5= 2005 F= 2015 S= 2025 5= 2035
G= 1986 T= 1996 6= 2006 G= 2016 T= 2026 6= 2036
H= 1987 V= 1997 7= 2007 H= 2017 V= 2027 7= 2037
J= 1988 W= 1998 8= 2008 J= 2018 W= 2028 8= 2038
K= 1989 X= 1999 9= 2009 K= 2019 X= 2029 9= 2039

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BASIC PARTS KNOWLEDGE
6.7 Position of the Engine Number
The engine number is marked on the CRANK CASE COVER, just like
the picture as below

JL465Q5☆9561M001261☆

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BASIC PARTS KNOWLEDGE
6.8 Changan Spare parts code Chart

S401 041 - 010 3 Head light, FR LH , for CS95

Imp
ort
ant

Variation code

Location code in Fig

Blank character

Fig No.: 41 fig of all catalog

Vehicle model: CS95

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BASIC PARTS KNOWLEDGE
6.8 Changan Spare parts code Chart

S401 041 - 010 3 Head light, FR LH , for CS95

Imp
ort
ant

Variation code

Location code in Fig

Blank character

Fig No.: 41 fig of all catalog

Vehicle model: CS95

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GENUINE PARTS
7.1 Genuine Parts Perception Graph

CURRENT TARGET

Price
EXPENSIVE EXPENSIVE
Perception

Genuine

Quality
Perception
Genuine
POOR GOOD POOR
Gray
Gray GOOD
Imitations

Imitations

CHEAP

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GENUINE PARTS
7.2 General Market Tendency of Genuine parts

Demand

Dealer Control Customers’ Loyalty to Brand

TARGET

CURRENT
Vehicle Life
End of Warranty Period

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GENUINE PARTS
7.3 Countermeasures for distributors
1. Improve Genuine Parts availability
- Inventory control
- Periodical ordering based on the reasonable parts demand expectation
- Lost sales control
- Investment
2. Recovery of Price Competitiveness
- Periodic Market Survey of dealer net & retail parts price
- Categorization of Parts group for competitive pricing
- Changan will do annual “Parts Price Survey” for fixing and adjusting the part price
- Pls Submit a “Parts Price Survey” report & a “Price Structure” report to Changan ONCE PER YEAR

- Establish a competitive pricing strategy that reflects

genuine parts as value for money
- Construct market-oriented dealer & retail pricing

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GENUINE PARTS
7.3 Countermeasures for distributors

3. Recovery of Customer’s Loyalty to Genuine parts

- Promote awareness to the public of the Parts Warranty Policy
- Provide awareness to vehicles’ owners that vehicle warranty
policy will be affected if non genuine parts are being used
- Advertisement of reliable quality genuine parts

4. Dealer Control
- Monitor & on a look out for dealers who deal with gray parts
- Periodical visits and meetings

5. Protection of Genuine brand

- Use the right to legally protect registered Changan brand
- Work and cooperate with local government to battle counterfeits

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PRICE, PROMOTION & MARKETING
8.1 BASIC PRICING POLICY
Changan continuously tries to maximize service at all levels of parts
distribution and encourage customers’ satisfaction. One of the key factors to
achieve these goals are to establish a competitive pricing strategy which will
ensure value for money and reinforce Changan's brand image. Changan
establishes prices for new part numbers by using optimized formulas which
are subject to approval of the management, and maintain FOB prices. They are
consistent with the overall corporate objective of providing high value for
dollar expanded.
Changan will do annual “Parts Price Survey” for fixing and adjusting the part price.

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PRICE, PROMOTION & MARKETING
8.2 PROMOTION & MARKETING
 Changan encourage Distributor to do Spare parts promotion or Parts Marketing.
 Normally Changan and distributor business team will deliberate parts as a package
in annual marketing budget.
 Distributor parts team need provide Changan the promotion plan and result.

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