The Definitive Guide to Supply Chain Best Practices: Comprehensive Lessons and Cases in Effective SCM

1. Dockomo Heavy Machinery Equipment, Ltd.: Spare Parts Supply Chain Management (SCM)

A. Narayanan, University of HoustonS. Seshadri, Texas A&M University

Introduction

Only when the custodial staff showed up at his office door did Vinod Mehra realize that it was already 3:00 a.m. Vinod is the vice president of supply chain for Dockomo Heavy Machinery Equipment, Ltd. He spent the entire night analyzing the data from the Spare Parts Division in Pune, India. It was April 15, 2010, and he had just two weeks to go before the annual company review.

The Spare Parts Division’s growth at Dockomo had slowed down to about 10 percent annually when compared with the growth rate of 20 percent annually over the previous years. Canceled orders stood at a staggering ...