INTRODUCTION
C OMPANY I NTRODUCTION
KOBELCO Construction Machinery Co., Ltd specializes in manufacturing and selling construction and transport machinery, including hydraulic excavators, mini excavators, and recycling machines The company also provides machinery parts and a range of services, from regular after-sales machine check-ups to inspections and expert advice Additionally, KOBELCO resells used equipment and serves a global customer base Founded in 1999 and headquartered in Tokyo, Japan, KOBELCO has manufacturing centers in Japan, China, Thailand, and India, along with parts centers in Japan and Singapore The company operates across Southeast Asia, Australia, New Zealand, China, India, Mongolia, Europe, Turkey, Africa, the Middle East, and the Russian Federation.
C I S , N o r t h America,a n d S o u t h America.KOBELCOConstructionMachineryCo.,Ltd.operatesasasu bsidiaryofKobeSteelL t d
KobelcoV ie t n a m (KCMV)i s a c o m pa n y w i t h 1 0 0 % f o r e i g n i n v e s t e d byKobelco C onstructionMachineryJapan,amembersofKobeSteel,oneofthebiggestmanufacturerso f construct ionmachineryinJapan.K C M V wasfoundedin2004withtheheadofficeinBienH o a 2industrialzone,Do ngNaiProvince,in2005onebranchwasestablishedinTienSonI nd ustr ial Zone,BacNinhprovi nce.
From2004to2008,thebusinesswasrestrictedonlyinserviceandsupplyofsparepartsforK o b e l c o machine.A f t e r V i e t n a m j o i n e d t h e WTO,i n 2 0 0 8 , K o b e l c o g o t t h e license d fordirectlyimport,andsince2009wewasgrantedthelicenseforsellingproducttotheend- u s e r s Inordertoquickly respondtocustomerdemandandbetterdoingserviceandsupplys p a r e parts,Kobelcoopenedth erepresentativeofficesandcustomerservicecentersinLaoC a i , DienBien,NgheAn,DaNang, andGiaLai.
Top r o v i d e m a c h i n e s , se r v i c ea n d s p a r e p a r t s i n ac c o r d a nc e w i t h J a pa n es e a n d internationalstandards.
Tocontribute totheenvironment protection, sa vi ng operating costs through a dva nce d techniquesofKobelco.
C OMPANY STRUCTURE
(Source:KCMVAdministrationDepartment)K o b e l c o VietnamestablishedheadofficeinDongNaiprovinceandheadofficecontrolsallo p e r a t i o n s o f B a c N i n h b r a n c h a n d f i v e r e p r e s e n t a t i v e o f f i c e s i n V i e t n a m A b o v e o rganizat io nal structure is appliedforDongNaiheadofficemanagedbyMember’sCouncila n d ManagingDirector.Therear efourdepartmentsinstructurelike:Administration,A c c o u n t i n g , S a l e s &MarketingandC ustomerSupport.E a c h d e p a r t m e n t i s i n c h a r g e o f d i f f e r e n t taskbutcooperatetoget hertowardmissionsandstrategiesofcompany.AlthoughS a l e s &Marketingbringstherevenue directlytocompany,thisdepartmentcouldnotoperate independentlyw i t h o u t supportofotherdepartments,e s p e c i a l l y C u s t o m e r Support department.
ThisthesisfocusesontheresearchofCustomerSupportdepartmentwhichplaysanimportantr o l e inthegrow thofKobelco’sbusiness.ThisdepartmentincludessomesectionssuchasA f t e r -
S a l e s s e c t i o n , t h e r e a r e t w o sections:Partss e c t i o n providingsparep a r t s f o r machineandS e r v i c e s e c t i o n offeringtechnicalassistandrepairingmachine.
K o b e l c o V i e t n a m isconsideredasatradingcompanythatimportsmachinefromJap anfactoryandT h a i l a n d factory,thensellstocustomersinVietnam.Thus,thetransactionbetweenth esellera n d buyercannotfinishwithdelivery,butitalsoincludesthepostsalesservice.Theafter- s a l e s serviceismoreprofessional,thecustomersaremoreinterestedinKobelco’sproductsa n d highlyappreciateditsbrandname.Moreover,whilemarketingprogramslikepromotion,customerg a t h e r i n g o r l a u n c h i n g n e w p r o d u c t a i m t o i n c r e a s e c u s t o m e r ’ s a w a r e n e s s o f K o b e l c o ’ s products,after- salesservicesmaintaincustomer’s loyaltyandincreasebuyingintentionofcustomersinthef uture.Consequently,itcouldnotdenythattheactivitiesofafter- salesservicegreatlyimpactonoperationandbusinesssituationofcompany.
PROBLEMCONTEXT
B USINESSSITUATIONOF K OBELCO V IETNAM
YearlyERGReport,Kobelcodideffectivelybusinessinearlyyearsa f t er gettinglicenseforse llingproducttotheEnd- users.ThedataofFigure2showedthat,themarkets h a r e r e m a i n e d highly1 9 % i n a v e r a g e d u r i n g 04yearsfrom2 0 0 9 to2 0 1 2 U n f o r t u n a t e l y , themarketsharehasexhibitedthede clineoftrendsincebeginningof2013.Itfelldramaticallyto14.9%in2013,16.3%in2014and15 5%in2015.TheassignmentofK o b e l c o ’ s BoardofDirectoristoincreasemarketshareto20%inf ollowingyears.Therefore,itisrequiredtofindeffectivesolutionstoregainmarketshare.
Market share of Construction Machinery Brands in 2015
5.2% KOBELCO KOMATSU HITACHI HYUNDAI CAT DOOSAN SUMITOMO
Therearemanyconstructionmachinerybrandsontheworld.However,inVietnam,Kobelco,Komatsu,Hita chi,Huyndai,Cat,Doosan,Sumitomo,Liugongarebrandswhataresupplyinge x c a v a t o r s toVietna mmarketcurrently.Figure3showsthemarketshareofallbrandsin2 01 5 Aswecanseethat
,Kobelco,Hitachi,Huyndaiarebigfourcompaniesinwhicht o t a l markets h a r e tooko v e r 8 0 % w h i l e r e m a i n i n g b r a n d s l i k e C a t , S u m i t o m o , D o o s a n , L i u g o n g onlyto okne gl ig ib le sh a r e of theexcavator’smarketinV i e t n a m B a s e d ont h e c o r r e s p o n d i n g marketshare,themaincompetitorsofKobelcoVietnamareKomatsu,Huyndai,Hitachi.
During0 4 yearsf r o m 2 0 0 9 t o 2 0 1 2 , c o m p a r e d w i t h mainc o m p e t i t o r s , K o b e l c o m o s t l y r e m a i n e d secondlevelinmarketwhileKomatsuwasalwaysinfirstposition;Hitachiran kednumberf o u r i n 2 0 0 9 a n d n u m b e r t h r e e f r o m 2 0 1 0 to2 0 1 2 w h e r e a s H u y n d a i w a s g r a t e d number5in2009andnumber4intheperiodof03years2010-
2012.Nonetheless,attheb e g i n n i n g ofyear2013,thepositionofKobelcodroppeddown tonumber4in2013,2014a n d 2015thatrankedafterKomatsu,Hitachi,Huyndai.Because Komatsuwasstillinfirstg r a d e , HitachirosetosecondlevelandHuyndaialsotookthirdplace(se eTable1).
Thedecreaseinmarketshareandlowpositionaretheoutcomeofmanyproblems.Therefore,t h e purposeof thisthesisistoclarifythemainproblemaswellasfindoutthecausesinordertohaveeffectivesolutionsofga iningmarketshareandrecoveringrankingposition.
SalesServiceisasupportactivityafterproductsaredeliveredtobuyers.Itisakeyelement ofproductqualityandsuccessfulcompetitionwhichfinallydependsonsatisfaction ofcustomers.A l m o s t c a s e s , t h e missiono f a f t e r s a l e s s e r v i c e s h o u l d b e i n d i c a t e d a s t h e c o n t r i b u t i o n ofbusinesscooperation.Itissuggestedthatthesupervisorofaftersalesserviced epartmentc a n r i s e b o t h f i r s t timea n d r e p e t i t i o n s a l e s , b e c a u s e o f t h a t i n c r e a s e marketshare (1) After-salesserviceisconsideredasfactorofintangibleproductasstatedbyAsugmane t al.
(2)After- salesservicewasclassifiedasaprocessofbusinessnetworkbecauseitaffectedd i rec t ly t o b u s i n e s s p e r f o r m a n c e a n d c o m p e t i t i v e a d v a n t a g e s a s s t a t e d byE a r l e t a l
( 3 ) S e r v i c e sandSalesshouldworktogetherinordertounderstandthevaluethatwecreateandt o im proveprograms.Wewillprovidetoourtargetedcustomerstheaddedvaluetheyneedt o maintain long-termrelationships Itis suggestedthat serviceshouldbeused asavaluablet o o l inoursalestoolbox.( 4 )Tavakolietal (5) indicatedthatindustrialafter- salesserviceisincludinggoodsandservicesw h e n sparepartsareastangibleproductscombining withcustomersupport.
Boenitz (6)found thatthereisthestrongpositiverelationshipsbetweencustomer- relatedlevelso f customersatisfactionandROI,economicreturnsandmarketvalue.Customerretentionhasa majorimpactonmarketshare,marketgrowthrate,market"chum"(customersenteringorleavingt hemarket,evengivena stablemarketsize),competitorsretentionrates,andt h e e f f e c t i v e n e s s of
"offensive"marketingefforts(advertising,pricing,convenience)allplayar o l e indetermi ningm a r k e t share Levitt (7) agreedt ha tthelong- termrelationship between SellerandBuyeraftersellingaproductdeterminesthelong- termprofitabilitybecauseafter- s a l e s serviceactivitiescontributetomakecompetitiveadvantagesandprofits.Therearemanytypesofafter- salesservicesuchascustomersupport,technicalsupport,productsupport,etca s statedbyGoffin.
The success of after-sales service is influenced by various factors, including field technical assistance, spare parts distribution, and customer care The customer support department oversees after-sales service, ensuring thorough checks of machine status before storage Upon delivery, handover minutes and pre-delivery inspection records document the condition of the machine and buyer information Technicians provide training and operational guidance at the job site, especially during the initial 50 hours of operation, with continuous support for maintenance However, for subsequent maintenance and unexpected damages, customers are responsible for contacting the company to report machine issues Despite the ability to reach out to customer support for inquiries or service information, many customers express dissatisfaction with the company's after-sales service, which fails to meet their expectations.
Actuallyafter- salesserviceplaysa veryimportantr o l e , i t i s thebridgebetweencustomersandcompany.Basedonthewa yofdoingservice,almostthemmaydecidetocontinuetousetheproducto r not.Aftersellingmachine,werecei vedalotofcomplaintfromcustomersbecausetheydidnotbet a k e d carewell
Accordingtotheprocessofservice,themechanicswillcontacttoend- usersformaintenanceforthefirst50hoursofoperation.Duringrest,customersmustactivelyrequestservicef romthecompany.Therefore,theysupposedthatthewayofprovidingKobelcoservicewasnotprofessionaland efficient
Servicedepartmentlacksproactivemaintenanceofthemachine.Kobelco’smechaniccomestocheckt h e m achineonlyonetimeaftermachinehandling.Ourstaffshavet o requireservicefornextinspections.Sowewoul dnotbeforewarnediffailshappened
Level of customer’s satisfaction about after-sales service of Kobelco
Ioftengetcomplaintsfromcustomersafterbuyingourmachines,theydonotgetthetakingcareofservicefrom KobelcowhileotherfirmssuchasKomatsu,Hitachi,doitverywell
6%during03yearsfrom2009to2012.Nonetheless,fromyear2013andl a t e r , itexhibitedaninc reasingtrendofunsatisfactoryofclients.In2013,thepercentageroseto 8%,nearly4 thtimes comparedwith2012.Then,it continuouslyincreasedto10%in2014a n d peaked12%in2015.Obviously,thereweremanyreas onsthatmaketheunsatisfactiono f customersandthelevelofdissatisfactionincreasedyearbyyear( seeFigure4).
C URRENTSTATUS OF A FTER -S ALES S ERVICEAT K OBELCO V IETNAM
Kobelco is at risk of losing loyal and potential customers in the near future According to the managers of the Sales & Marketing and Customer Support departments, the company is exploring various solutions to enhance aftersales service and better serve clients However, finding the most effective solutions is challenging, as it depends on factors such as strategy, objectives, budget, and human resources Additionally, as a subsidiary of Kobelco Japan, Kobelco Vietnam requires approval from its parent company for significant investments and the adoption of new technologies Kobelco Japan's Research and Development Center has developed a GPS system called KOME XS, which allows for convenient remote monitoring of machines, improving control over machine conditions and locations via satellite This system addresses many existing aftersales service issues at Kobelco Vietnam Initially launched in Japan in 2004, KOME XS was later introduced in India, the EU, the USA, and Thailand in 2013, followed by Vietnam, Laos, and Cambodia in 2016, making its implementation in Kobelco Vietnam feasible since then.
PROBLEMIDENTIFICATION
R EACTIVE A FTER -S ALES S ERVICE
Bowman (10)stated thatafter– salesserviceisprovidedbysuppliersaspercustomers’request,supplierscanservethemreactively.Reactiv epostsalesserviceisassameasareactionwhatsuppliersrequitet o t h e i r customer’c o m p l a i n t s
(11)Thus,B e r r y (12) suggestedthatreactivea p p r o a c h e s couldnotfindouttheproblemofser vice.Thecomplaintofcustomersincludest h r e e steps:problemcomprehended,problemstatedandsol utionseekingasstatedbyBest.
)statedthatalmostheavyequipmentisu s e d morewide- rangingandoriginativethanlightequipment.Therefore,heavyusershave knowledgeaboutstrengthsandweaknessesofproducts.Thesuppliersbegintocontactheavyu s e r s tocoll ectinformationasmuchaspossibletoimprovetheserviceandovercometheproblem (14) 3.1.1 Correctivemaintenance
Correctivemaintenancecontainsunscheduledactivitiestocorrectdeficienciesduringtheyearin wh ich theyoc cur.Equipmenti s pe r m i t t e d to o pe r a t e u n t i l b r e a k d o w n Af te rt h a t , i t isr e p l a c e d o r r e p a i r e d ass t a t e d byP a z
(15)Gallimore( 16)indicatedthatfirstly,machineisr e s t o r e d t e m p o r a r i l y tor e c o v e r n o r m a l o p e r a t i o n a n d l a s t i n g r e p a i r s i s d o n e l a t e r T h i s maintenanceis tominimizemanpower,keepmoneyinordertomaintainmachine’srunningi n shorttime.Theref ore,itincreasesoverallcostofmaintenancesbecauseofunpredictabledamage (17)
Afterfinishingtheseabovesteps,machinecouldbereturnedtoruntemporarilyanditpossiblyb r o k e downag ain.Therefore,customersusuallyblamedthatmachinewasregularlyd i s r u p t i o n s i noperationprocess
Emergencymaintenance i s un der st oo d t h a t t heac ti vi ti es a r e u n s c he d u l e d maintena ncet o c o r r e c t deficienciesimmediately.Itspurposeistopreventdamaged,propertyloss,etc.Theser e p ai r s areimplementedinveryshorttimeaboutseveralhours.Mr.TrinhXuanThang-
Becausetherewasnoperiodicinspectionorpreplannedmaintenanceactivities,Kobelcoservicecouldn o t controlstatusofmachine.Whenfailureoccurredsuddenly,emergencymaintenanceisprioritymethodtocon sidersolvingtheproblem.Theincurredfeewasveryexpensivewhichwashigherthanp l a n fromfourtoeigh ttimes.Thereweresomereasonsasfollows:
Kobelcomadefreeinspectiontomachineafterdeliveryfirst50hoursofoperationwhileothercompetitorslik eKomatsu,Huyndai,Hitachiappliedserviceproactivelywithregularinspectionstocus tomers(seeTable2).Itledtoafter- salesserviceofKobelcolessprofessionalthanotherbrands.Mr.TrinhXuanThang–
CustomersstronglycomplaintthatKobelcodidnotprovidemaintenanceserviceinperiodicallyatjobsitecom paredwithothercompetitorsKomatsu,HitachiandHuyndai.Isupposedthatunscheduledactivitiesofreactiv eafter-salesserviceimpact negativelyonafter-salesserviceofKobelco
CustomerS u p p o r t Manager,customersstronglycomplaintaboutreactivepostsalesserviceofKobel cob e c a u se itnotonlyaccruedbigamountofrepairfeebutalsoaffectseriouslytotheirbusiness.Theywillh avebeenconsideredcarefullybeforeusingKobelco’sserviceorbuyingmachinei n thefuture.Tosu mup,reactivepostsalesservicewasnotsuitableforusersandtherootc a u s e ofinappropriate servicetype.Fromthat,itledtomarketsharedeclineinrecentyears.
C USTOMERCARE
(9)Customerservicehasmanytypesanddifferentdistributionsystem.Customerc a n a b s o r b t e c h n i c a l i n f o r m a t i o n f r o m c o m p a n y t h r o u g h c e n t r a l i z a t i o n o f c a l l c e n t e r , c o m p a n y w e b s i t e a n d l o c a l r e p a i r s t o r e K a n t s p e r g e r (18) foundthatt h e a c t i v i t y o f customertransferredfromsimplicitytocomplexity.Atfirst,themissionofcustomerservicei s togi veinformationofserviceandprocessorders,butnowthetaskismorecomplexbyconsultin gandmaintainingtherelationship.Kahn(19)concludesthatalmostenterprisespayattentionmoreo ncustomersduetocustomers’view.Inordertoexistinfiercecompetitivemarketwhatproducts areconstantlybeingimproved with fastspeed,the companies havetoc h a n g e toadapt.
InKobelco,customercareisundertakenbycustomersupportdepartment.Uponreceivin gf e e d b a c k o f e q u i p m e n t ’ s s t a t u s fromc l i e n t s ,theyw i l l c l a s s i f y i n t o d i f f e r e n t l e v e l s o f b r e a k d o w n togivethemostappropriatesolution.Forthoseslightlydamaged machinery,theyw i l l adviseclientsonthespotsettlement.Conversely,asforbigtroubles,thesei nformationw i l l berecordedandreverttothecustomersafterreceivingspecificdecisionsf romsenior.
Kobelcoprovidestechnicalinformationinwebsiteorofficialpaper.Customerscanchoosetyp esofcontactsuchasphone,faxoremail.Mostofcases,customersgetincontactviaphonew h i c h i s a va i l a b l e from7 amto4 3 0 pm,w h i l e i t t a ke s l o n g e r timefore m a i l f ee d b a c k C o m p an y didnota pplyanyspecialpolicyforurgentcaseswhatcustomersneedresponsesassoonaspossible.Mr.TrinhXuan Thang-SeniorServiceSectioninformedthat:
ThereisnospecialpolicyforfastnessoffeedbackfromKobelco.Itdependsoneachspecificcase,forexample,S erviceSectionwillgiveprioritysupportforseriousproblemwhereasnormalproblemwillb e consideredtoso lve
Therewere98% ofclientswhocomedirectlytoofficeandorderparts,only2%ofcustomerscalledf o r buying.Kobelcohadno tstillsetupsystemofpurchasingonline.Therefore,informationprovisionwaslimitedforcustomertoaccessan dcontactquickly
Kobelco does not offer a warranty policy for spare parts with a low life cycle, such as oil, filters, sprocket teeth, seal kits, and rollers, limiting the warranty to main components like the engine, boom, motor, electric sensors, solenoids, and valves Compared to competitors like Komatsu, Hitachi, and Hyundai, Kobelco's warranty period is shorter, which may impact consumer satisfaction According to Slotegraaf, customers value the warranty duration as it enhances their perception of product quality Conversely, unresolved issues regarding product attributes can diminish overall satisfaction with quality over time.
F IELD T ECHNICAL A SSISTANCE
(21)Itissuggestedthatoutsourcinghasbeenbecomemorepopularfrom1990’sa n d dependedonthefiel dtechnicalassistance’sactivity.
(22)Armisteadetal(23)suggestedthatt h e enterpriseswithbigamountofservicemostlyprefertotheoutsourcing. Russell (22)agreed thatbecausetherearetechnicalproblemsalwaysmaketroublestocustomers,theyneedh ighl e v e l ofcorporationfromthesellers.Chien(24)demonstratedthatitaimstoprovideafter- salesservicequicklytocustomerincasetheproductsbreakdowninthewarrantyperiod.Moreover, thewarrantyplanshouldbepredictedaccuratelyinordertoofferwarrantyinlongtime.Am a n u f a c t u r e r hasresponsibilitytoensurethefunctionofproductbyprovidingwarrantyass tatedbyBlischkeWRetal (25)
ThewarrantyperiodofKobelcomachineis12(twelve)monthsortwothousand(2,000)h o u r s ofoperationwhichevercomesfirstfromthedateof deliverytothefirstuser.Thi sw a r r a n t y timeisthesameasothercompetitorslikeKomatsu,Hitachi,Huyndaigenerall y.Withinthewarrantyperiod,exceptsomelimitations,Kobelcowillrepairorreplaceati tso p t i o n , freeofcharge,F.O.B.KOBELCO’sfactoryorDistributoratKOBELCO’sopt ion,a n y partorpartsofthewarrantedmachinewhicharefoundbyKOBELCOtobedetectiveinmaterial andworkmanship.AnypartsreplacedmustbereturnedtoKOBELCO’s factoryinJapan,ThailandoritsauthorizedDistributor,transportationchargeprepaidbysender. 3.3.2 Productdisposal
Thelifetimeofthemachineisaveragefrom10to15years.Theoldermodelhasthelongerlifetimeco mparedtolatermodelalthoughnewermachineisappliedadvancedtechnologies.F o r example,Ko belcomark8wasinnovatedtolowerfuelconsumptionandmoreefficientperformanceagainstm ark6.Asforusedmachinefrom1980sthatisoutofdate,harmfulwithe n v i r o n m e n t anddifficulttob uysparepartsincurrentmarket.Mr.NguyenThanhTuan–S a l e s Managersaidthat:
Kobelcoimportedusedmachinewiththequalityupto80%fromJapan,thenmachinewasrepairands o l d Ho wever,machineiswarrantedmaincomponentslikeengine,hydraulicsystemwith06monthso r 1 0 0 0 h o u r s whicheverc o m e first.After0 6 months,Kobelcowillnotb e i n chargeo f productdisposalforcustomers
Inaddition,thereweretwosourcesofsparepartsthatKobelcoimportedfromoversea.Thefirsto neisgenuinepartsinJapanesemanufacturer,thesecondoneisnotgenuinepartsnamelyK2GPwhatwereproduce dinChina.Inrecentyears,inordertosavetransportationcostandt i m e, Kobelcointensifiedtoimportmor eK2GPsparepartswhichaccountedfor20%in2009,thenitoverdoubledin2015(seeTable4).Themoreso urcesofnotgenuinepartsincreased,t h e lifetimeofpartsdecreased.
S PAREPARTSDISTRIBUTION
Saccani (9) agreedthatdistributionofsparepartsisinchargeofinventory,orderanddeliverym a n a g e m e n t Kennedyetal (26) confirmedthatsparepartswhichsoldtocustomer,arenotthef i n a l parts.T hefindingindicatedthecompaniesthatmeettheirclients’requirementsofpart- s u p p l y ontime,cansharplyimprovecustomers’satisfactionininteractionandqualityofafter-s a l e s service.
(27)Thedeliverytimeofsparepartsdependedoneachitemwhatwasavailableo nstockornot.C ustomerwillfeelsatisfiedifthesparepartscansupplyontimefortheirrequirement.Sothedi stributionsystemismorestableandstabilize,thelevelofsatisfactioni s higher.Inaddition,inventorym anagementaimstoprovidesparepartstimelyforequipmentr e p a i r e d asstatedbyHopp.
(28)Kennedy(26)concludedthatholdinginventoryassistsmaintenanceandtroubleshootingefficiently,becauseitisverydifficulttopredictthenumber ofpartswhichshouldbereplacedinthefuture.Forunplannedmaintenance,itwillcostmoree x p e n s e in casedamagedpartsdonotreplaceassoonaspossible.
Kobelcoh a s s e v e n p a r t s w a r e h o u s e s i n s e v e n o f f i c e s a t D o n g N a i p r o v i n c e , B a c N i n h p r o v i n c e , LaoCaiprovince,DienBienprovince,NgheAnprovince,Da NangprovinceandG i a Laiprovince.WhileHitachiandHuydaistockpartsandmakeser viceinalmosteachprovinceofVietnaminordertoassistcustomersthoughtfully.
The delivery time for spare parts varies based on stock availability If items are in stock at the warehouse, delivery takes one to two days However, if parts need to be ordered from foreign manufacturers in Japan, Malaysia, or Thailand, the delivery timeframe extends to two to four weeks This delay has led to customer dissatisfaction, as it hinders their business operations Consequently, long delivery times significantly influence clients' purchasing decisions, prompting them to seek spare parts from competitors instead of Kobelco.
Reactive After – Sales Service Customer care
Market share decreases Inappropriate After - Sales Service type
During and after warranty assistance
Ranking position decreases Product disposal Delivery of spare parts
Field Technical Assistance Spare parts distribution
CAUSESANDEFFECT
Accordingtoabovecausesandeffecttreeandrespondentsinterviews,itfoundthatinappropri atepostsalesserviceistheb i g p r o b l e m thatl e d t o markets h a r e o f K o b e l c o d e c r e a s e d a n d r a n k i n g p o s i t i o n d r o p p e d d o w n i n r e c e n t years.I n s h o r t t e r m i t a f f e c t s t o b u s i n e s s a c t i v i t y a n d r e v e n u e o f company,b u t i n l o n g t e r m b r a n d imageo f K o b e l c o isg r a d u a l l y lost.B e c a u s e o ft he serious andemergency oft hi s factor, itrequire sBoardof
DirectorofKobelcoVietnamfocusonthemandfindthebestsoultiontoovercomeimmediately. Almostpeoplewhojoinindepthinterviewincludingcompany’sstaffsandcustomersaddresst h e keyfactor l e a d s tot h e i n a p p r o p r i a t e p o s t s a l e s s e r v i c e i s r e a c t i v e a f t e r - s a l e s s e r v i c e N e v e r t h e l e s s , itcan notdeniedthat t hr ee o t h e r factors li ke custo mercar e, fieldtechnical assistantandsparepartsdistributionalsoimpactonafter- salesserviceactivityofKobelco.Buttheyarelessurgentthanreactiveafter- salesserviceandc a n besolvedinternallyinshortterm.Consequently,itistimetodeeplyfocusonkeyfact or:Reactiveafter-salesservice.
CAUSE VALIDATION
Asconfirmationofcorrespondentsthroughin- depthinterviewsandtheoriesinformed,therea r e manycausesledbyinappropriateafter- salesservice:reactiveafter- salesservice,customerc a r e , fieldtechnicalassistantandsparepartsdistribution.
Throughc u s t o m e r s e r v i c e r e c o r d s c o l l e c t e d byc u s t o m e r s u p p o r t d e p a r t m e n t a nnually,ita c k n o w l e d g e d t h a t s a t i s f a c t i o n o f customersf o r K o b e l c o ’ s s e r v i c e i s d e c i d e d bymanyelements.Customersweresatisfiedwithinformationprovisionandfi eldtechnicalassistantw h i c h havehighpercentage80%and60%respectively.Sparepartsdistributiona ndwarrantyextensionaretwosignificancefactorswhethercustomersarenothappysomuchbuttheywillc o n s i d e r u s i n g i n the future Onthe otherhand, theyextremelyunpleasedwithreactive posts a l e s serviceofKobelco,forinstance,correctivemaintenanceandemergencymaintenan cea r e highestpercentageofdissatisfaction65%and50%respectively(seeTable5).
(Source:CustomerServiceReportin2015)Bas ed onabovereport,itcanberecognizedthatreactivepostsalesserviceisprovedtobethemainfactorofthisiss uebecauseofitsimpactonlevelofcustomer’ssatisfactionaboutafter- salesserviceingeneralandKobelco’sbusinessasawhole.
Asf o r customersw h o a r e u s i n g K o b e l c o ’smachine,i t d i r e c t l y af fec ts s a t i s f a c t i o n ofcustomera n d theya r e n o l o n g e r i n t e r e s t e d i n t h e s e r v i c e s a n d p r o d u c t s o f
Turnonnewcustomers,whentheyheardthebadinformationofKobelco’sservicewhichisunprofes sionalservicesandnotproactive,theybecomeanxiousandwouldconsidermorebef oredecidingtobuynewequipmentfromthecompany.
Inconclusion,reactivepostsalesserviceisunprofessionalservicebecausetheusersalwaysr e q u i r e activetechnicalassistfortheirequipment.Customersupportdepartmentandrelativedepartmentswe reindicated toimprove thissituation,but itisf a c i n g somefollowingd i f f i c u l t i e s :
Firstly,thereareonly33technicalstaffswhilethenumberofmachinessoldtotally551u n i t s from2009to2015.Itmeansthateachmechanicastakencare17unitsinaverage.T h u s thehu manresourceisnotenoughtoservewell.
Secondly,currentlythereissevenservicecentersestablishedacrossthecountry.Soeachc e n t e r managestheamountofunitsinnineprovinces.Itisrecognizedthattheservicec e n t e r numberislessthanthedemandsofservicewhichareprovidedtousers.
Toresolvethissituationandbemoreproactiveinprovidingservices,companiesconsi dera p p r o a c h i n g somepotentialsolutionssuchasrecruitingmoretechnicalstaffs,estab lishingmoreservicecentersorapplyingGPStechnologytotracktheactivitiesofmachineefficiently.
ALTERNATIVESOLUTIONS
A LTERNATIVE S OLUTION 1:A SSEMBLING GPS(KOMEXS– KOBELCOMONITORINGEXCAVATORSYSTEM)
KOMEXSisbothawirelessequipmentmonitoringsystemandasecure,web- based,applicationusedforreviewingthedatawhichcollectsandsends.KOMEXSnotonlygive syouthepowerofknowledge,butalsotheconvenienceofmanagingyourfleetontheWeb,w h e r e v e r youare.KOMEXSdataispackagedspecificallyforeasy andintuitiveanalysisin maps,l i s t s , g r a p h s a n d c h a r t s t h a t a r e r e a d y forv i e w i n g a t yourc o n v e n i e n c e I t w i l l b e installedt o almostmachinemark8 — andi t ’ s r e a d y t o r u n f r e e t h e f i r s t f i v e years( n o c o m m u n i c a t i o n servicefees). Thistechnologycanalsobeinstalledinalmostanythingusinga 12Vor24Velectricalsystemtocollectb asicoperatinginformation.
KOMEXS utilizes a network of low Earth-orbit satellites to relay essential performance data from your machines to your computer and local Kobelco distributor, who is available for expert analysis and feedback It collects detailed daily information from your machines and generates reports on both basic and advanced performance metrics Through its web application, users can easily access a variety of search parameters to find specific machine information based on factors such as utilization rates and age Additionally, KOMEXS data can be integrated into existing management applications or downloaded for further analysis in spreadsheet programs KOMEXS not only provides information but also delivers actionable insights.
KOMEXSg i v e s yout h e p o w e r a n d k n o w l e d g e t o h e l p youmakef a c t - b a s e d , b a s i c a n d strategicbusinessdecisionsregardingyourmachinesandtheiroperations.Th ispaysoffinincreasedproductivityandavailability,proactivesupport,smartermanagement,andm uch more.TheinformationKOMEXSreportswillvarybymachinemodelforKobelcoE q u i p m e n t
Workingdatadisplaysthestatusofdailyworking,useoftheoptionalattachment,andp a r k i n g statepermonth.Theperiodofthedailyoperationtimeisdisplayedpermonth.T h e graphofthemonthlytotaloperationtimeisdisplayedwiththeworktypeperyear.T h e ope rationtimeandradiobyworktypearedisplayedintheselectedtargetrange.Eachmodeloffuelconsum ptionaredisplayed.Operationinformation(workinghours,days,w o r k load,etc.)durin gtheperiodoftimespecifiedinthetargetrangeislisted.
GoogleEarth(night, afternoon,realtime).F o r theselectedtargetmachine,theunitsthatarel ocatedwithinthes p e c i f i e d distancearedisplayedonGoogleEarththeWebmap.
Maintenanceinformationcanbed o w n l o a d e d asanExcelfile.R e p l a c e m e n t timeo f c o n s u m a b l e s c a n b e c h e c k e d N e g a t i v e v a l u e s h o w s t h e e l a p s e d times i n c e t h e approximatetimingofreplacement.
This systemisused formaintenanceplanninginorderto changepassivemaintenancetop o s i t i v e maintenance.
KOMEXSa l lo w s youandyourlocaldealertobemoreproactiveinscheduling informed ,intelligentp r e v e n t i v e m a i n t e n a n c e f o r yourm a c h i n e s E a c h day,t h e K O M E
X S Webs i t e displaysi n f o r m a t i o n oneachmachine’sperformance,includingservicemeterrea dings,cautions,ande n g i n e performancedetailssuchasworkingandidletimes.Maintenance reminderscoupledw i t h theabnormalitycodesyourdealerreceivesallowsyouoryourdea lertoidentifyanda d d r e s s p o t e n t i a l f u t u r e i s s u e s d u r i n g r o u t i n e m a i n t e n a n c e c h e c k s — andt o e n s u r e p a r t s a v a i l a b i l i t y forfasterrepairsandgreatermachineavailability.
Smartmanagement:KOMEXS allowsyoutolocateequipmentonlargejobsitesor aroundyourterritory,monitormachinemovement,determinewhichoperatorsaremoreefficientin w h i c h situations,trackfuelconsumption,identifyoperatoruseandhabits,andchart dailyh o u r s ofoperation.Withdealerprovidedoperationalreportsyoucanseehowman yhoursyourmachinespentinvariousmodesofoperationsuchasdigging,traveling,hydraulicrelief,p o w e r mode,economymode,liftingmode,andmore.
FreedomandConvenience:Withthetouchofabutton,youhavealltheinformationyoun e e d aboutyourfleetrightatyourfingertips—onaneasy-to- use,secureWebapplicationthatl e t s youanalyzethedatathroughmaps,graphs,lists,andcharts.
KOMEX offers service without monthly communication fees for the first five years, providing significant cost advantages The potential for a higher resale value of your machines is enhanced by KOMEX's detailed records of maintenance, item replacement history, actual working hours, and operational load levels Additionally, advanced security features such as geo-fencing and engine lock reduce the risk of theft, potentially lowering insurance costs The engine lock functionality allows for the prevention of machine startup at any time, the establishment of recurring daily lock periods, and the implementation of a "calendar lock" to restrict operation during specific times of the year, including holidays like Thanksgiving.
6.ThetotaloperatingcostisVND3.760.000/ systemperyear.With551unitsKobelcomark8 soldfrom2009to2015,thetotalcostisVND2.071.760. 000.
ConnectFuelconsumptionsensor.Co nnectstart/ stopswitchCheckingviaSmartphone /PCConnectCamera.
(Saveitinerary,timereports,speed,km,etc)
A LTERNATION S OLUTION 2:E STABLISHMORE S ERVICE C ENTERS
Kobelco currently operates seven Service Centers across Bac Ninh, Lao Cai, Dien Bien, Nghe An, Da Nang, Gia Lai, and Dong Nai Since 2012, the company has held annual customer gatherings at these locations to express gratitude and enhance brand awareness In June 2016, the first customer gathering was held in Can Tho province, motivated by Can Tho’s highest sales in 2015, accounting for 24.56% of total machines sold Additionally, the event aimed to assess market demand and gather customer feedback regarding a potential service center in Can Tho The gathering attracted 320 attendees from the Mekong Delta provinces, with 80% supporting the establishment of a service center in the area for various reasons.
WhenKobelcohasservicecenterinCanTho,wewilleasilybuygenuinepartsatofficeinsteadofg o i n g thr oughotherretailstores.IttakesaboutonedayformechanictogofromCanThotojobsitea n d repairthemac hine,wewillnotwaitforseveraldaysasthepresent.Moreover,theservicesectionwillproactivelycontacttoen d-usersanddomaintenancetoequipmentperiodically
TheT a b l e 8 s h o w s t h a t t h e t o t a l e x p e n s e s o f n i n e c e n t e r s i n o n e year.E a c h c e n t e r h a s r espo nsibil it y ofmanagingallunitsatitsarea.
To sumup, assemblingGPS systemand establishingmoreservicecenters aretwoproposedsolutionsthatcanbeappliedtoresolvetheproblemofinappropriateafter- salesserviceofK o b e l c o Throughbenefitsandcostanalysis,itcanbeseenthatassemblingKOMEXSs ystemi s optimalsolutionbecauseofsomebelowreasons:
Firstly,K O M E X S b r i n g s moreb e n e f i t s t o c o m p a n y a n d c u s t o m e r s t h a n s e r v i c e c e n t e r o p e n e d A s f o r company,K O M E X S i s a s m a r t s y s t e m t h a t s u p p o r t s c u s t o m e r s u p p o r t departmentmonitortheoperationalstatusofmachinesefficient lyandaccurately.Therebyitsavestimeandmanpower.Forcustomerswhousethissystem,theycancon venientlyremotemachines(machinecondition/
Workinglocationetc.)inanytimeatanywherebecausealld a t a ofmachinewillbeshownonmob ilephoneorPC.Moreover,thissystemisproductivitya n d usedformaintenanceplanninginorde rtochange“passivemaintenance”to“positivem a i n t e n a n c e ” Especially,itofferssecuri tyfunctiontousers.IncaseofmachinestolenandK O M E X S destroyedbythefts,theengineisunabl etostartinordertopreventstealing.
Secondly,c o s t o f K O M E X S w h i c h w i l l b e i n s t a l l e d t o 5 5 1 u n i t s e x c a v a t o r mark8 is2 0 7 1 7 6 0 VNDwhileexpensesofnineservicecentersperyearis4.017.600 000VND.ItmeansservicecentersopenedcostnearlydoubleKOMEXSinstalled.Inaddition,KOME XSa p p l i e s freeservice(nomonthlycommunicationfees)forthefirst5years;thereforeuserswills a v e morefeeasusingthissystem.
Thirdly,accordingtoin- depthinterviewofKobelco’smanagers,mostofthemensuredthatK O M E X S isausefulsystemfo rcustomers’businessbecauseofitsoutstandingbenefits.Thiss y s t e m isoptimalsolutionwhatKobelc oshouldimplementtohaveappropriateafter-salesservice.
IthinkinstallingGPPSisthebestsolutionforKobelcotoproactiveafter- salesservice.AfterusingGPSsystem,productivityrisesof50%andcostsdownsignificantly.Sothecontract orwillbemorecompetitiveandprofitableatthesametime
KOMEXShavemanyadvantagessuchassavingtimeandcost.Besidesthat,itcandiagnosticsdeviceaccuratel ythanhumans.SoIthinkthatinvestinginKOMEXSismoreefficientopeningnewservicecenters
With KOMEXS, we efficiently track machine hours and locations, allowing for timely service without the need for an in-house mechanic Our Kobelco dealer handles all maintenance and service work, which saves us money and simplifies our operations, enabling us to focus on our core business of moving dirt We find KOMEXS to be a user-friendly system that enhances our business management Additionally, we recognize the risks of equipment vandalism and theft; however, the automatic shutdown features of KOMEXS help us minimize these potential issues.
AtfirstIonlywantedtoknowhowmanyhourswereonmymachines— nowIwanttok n o w everything.Lessthanayear,Ihavechangedthethinking,from"ifn otfailure,itdoesnotcorrect"tobeabletopredictandplandowntimetoconductmaintenanc eworka n d overhaul.Iknowmyemployeeswhocanworkbestinspecificconditions andthe machinec a n i m p r o v e p r o d u c t i v i t y an dw o r k e f f i c i e n c y T h e v a l u e s t i l l m a i t a i n w h i l e o p e r a t i n g costsreduceandthelifeofthemachineincrease.
By utilizing the KOMEXS system linked to Kobelco's Troubleshooting Support System, we successfully diagnosed a machine from 1,200 miles away This capability significantly improved machine availability and reduced repair costs, as technicians arrived prepared with the necessary information on what to search for and which parts were needed Previously, we relied on customers to report when their undercarriage was due for a turn, often leading to excessive wear and the need for replacement Now, by monitoring machines through KOMEXS, we schedule undercarriage inspections every 500 hours and adjust this interval based on our findings and reported crawler pedal/travel hours This proactive approach allows us to identify issues before they become critical and helps owners predict when an undercarriage will need replacement, ensuring we have the required parts readily available.
ORGANIZATION OFACTIONS
InKobelcoVietnam,inappropriateafter- salesserviceisbigproblemwhatshouldbesolvedimmediately.Abovearetwoalternativesoluti onsapproached?
Becauseofthelimitationofb u d g e t andhumanresources,oneoptimalsolutioncouldbeapplie distoinstallKOMEXS.F r o m that,companycanprovideproactiveafter- salesservicethatcanmeetthesatisfactionofcustomersandimprovebusinesssituationofcompanyinnearf uture.
KobelcoVietnamorganizesKOMEXStrainingforemployees.Trainingcontentincludesf u n c t i o n , utilityandoperationofthissystem.Afterthat,mechanicswillmakeapplicationa n d practiceon machine.
Salesdepartmentmakes plantointroduceKOMEXS t o customers KOMEXSw illbe installeda n d testedonsomemachines.T h e n t h e c o m p a n y w i l l r e c o r d t h e c u s t o m e r ' s o p i n i o n aboutthequalityofthesystem.
Allmachinemark8willbeinstalledKOMEXS.Customersupportdepartmentwillfollowa n d adviseuse rswhentheirequipmenthasproblem.
Table9showstheactionsplanincludingtimeandtaskmanagement.Ittakesabout07monthsf r o m Novemb er2016toJune2017.
Objectives(What) Actions(How) Responsibility(W ho) Organizationplace(
- TostudyaboutK O M E X S (function,o p e r a t i n g pro cedure,otherinformation)
Training departmento f Kobelc oJapanandTraining sectionK o b e l c o Viet nam
KobelcoVietnam:headoffi ce,branchandrepresentative offices
CustomerSupportdepa rtment KobelcoVietnam:DongN aiheadoffice,BacN i n h br anch
KobelcoVietnam:DongN aiheadoffice,BacN i n h br anch
KobelcoVietnam:DongN aiheadoffice,BacN i n h br anch
-Evaluate the quality ofK O M E X S -Reviewactionplan
CONCLUSION
Thist h e s i s h a s f o c u s e d o n f i n d i n g t h e mainp r o b l e m c a u s i n g b a d b u s i n e s s s i t u a t i o n o f Kobelco inrecentyears.Itcouldbeseenthatafter- salesserviceplaysanimportantroleintheh e a v y equipmentmachineryindustryinwhichrequiresactives upportandtechnicalassistantt o end-users.Thus, amongcausesledto inappropriate post salesservice,reactiveafter- salesserviceisprovedthekeyfactor.Thepurposesofthisthesiswastostateclearly andinformt h e realissuethatisoccurringinKobelcoVietnam.Fromthat,thecompanywilltakeactionsi mmediatelytogive someproposedsolutions,thenchoosethebestone.Understandingwellt h e i s s u e a n d r e s o l v i n g i t i s a l s o p o s i t i v e w a y t o g a i n t h e s a t i s f a c t i o n o f c u s t o m e r s f o r Ko b e l co
SUPPORTINGINFORMATION
D a t a a n d information took fromprimarysourceisfor thepurpose ofsolvinga problem.Primarydatai s collectedspecifically.Nevertheless,itiscostlyandnotaccessibleasinform edbyCowton
.(31)Stewart(32)supposedthatconversely,secondarys o u r c e s a r e theexistingdata andi n f o r m a t i o n t h a t a i m s f o r a n o t h e r p u r p o s e t h a n r e s o l v i n g t h e p r o b l e m S e c o n d a r y d a t a p r o v i d e s alternativesforprimaryresearchandpossiblysolvesrese archproblemsasstatedbyBrymanetal (33)Cowton foundthatitcostsefficientlyandaccessibly.
In this project, both secondary and primary data were collected to ensure comprehensive analysis Secondary data was sourced from reliable internal company reports and figures from the Sales & Marketing and Customer Support departments, as well as relevant literature, books, journals, and previous research on after-sales services This data was then compared with real-world scenarios to obtain specific insights For primary data, a qualitative approach was adopted due to the limited timeframe and challenges in accessing the heavy equipment machinery industry in Vietnam.
Themainmethodf o r c o l l e c t i n g q u a l i t a t i v e d a t a i s i n - d e p t h i n t e r v i e w s T h e r e s e a r c h e r c o n d u c t e d twotimesofin- depthinterviewsforrespondentsofinternalcompanyandonetimef o r thosewhoareexternalcompany.E veryin- depthinterviewtookabout25minutesto30minutes,questionnairesweredesignedclearlyan dopen- endedtogetvaluableinformation.I n o r d e r t o g a i n d e e p e r i n s i g h t s o f t h e p h e n o m e n o n o f t h e s t u d y , in-depthi n t e r v i e w s o f r e s p o n d e n t s fromthreegroupswerecarriedon:
The firstgroupincludesfourpeoplewhoareworkingat KobelcoVietnamsuch asSalesManager;(2)Mr.NguyenTrongHieu-CustomerSupport Manager; (3)Ms.PhanThanhN h a - S e n i o r PartsSectionand(4)Mr.TrinhXuanThang–
ThesecondgroupincludesEnd- usersofKobelcoVietnamwhohaveeverboughtandusedKo bel co ’s products.
However,from2013to2015itfellbelow17%,forexamplethepercentageis15%,16.3%,15.5%in2 0 1 3 , 2 014,2015respectively.
In2013and2014,thecuttingofinvestmentmadetheconstructionprojectsofroads,hydropower,irrigationstopped.
Thecompetitionofheavyequipmentcompaniesisgettingmorefiercely.Specifically,beforetherewereseveralbra ndssuchasKomatsu,Cat,Kobelco,butnowthereismoreinvolvementofbigbrandssuchasJ C B fromtheUK,Do osan,HyundaifromKorea,Sunny,LiugongfromChina.
A:Asfornegativeresponsesofcustomers,thecompanyhasapproachedsolutionstoimproveAfterSalesServiceyet? B:Ofcourse,SalesDept.andotherrelativeDept.consideredtoimproveServicequalityasfollows:
A:Inyourpointofview,istherethemainreasonwhycustomerswerenotinterestedinKobelcoproductsinrecentyears? B:Asyouknowthatinordertosellspareparts,itdependsmainlyonthequalityofservice.A:Whatthi ngsdidcustomerscommentonthequalityofAfterSalesServiceofKobelco?
The price and quality of service :
ExperienceaswellasServiceskillsarebad,becausemostofthemaretechnicalworkers.Inaddition,thecompanydi d notorganizeregularlytrainingcourseforthemtoimproveskills.
Ser vi ce st affs’ att itude:
B:Inmypointofview,thisispriceandqualityofaftersalesservice.BecauseitaffectstheinterestsofcustomersA:Company hasapproachedsolutionstoimproveAfterSalesServiceyet?
Customersboughtanexcavatorfortheirprojects,soitbecomestheirlongtermliability.Howevertheb a d serv iceandhighpriceofsparepartswillaffecttheirprofits.
A:Inyourpointofview,istherethemainreasonwhycustomerswerenotinterestedinKobelcoproductsinrecentyears? B:WithmanyyearsofworkingintheCustomerServicedepartment,Inoticedthatthequalityofafter- salesservicegreatlyaffectedsalesofthecompany.
B:Theservicesituationisnotreallygood.Weusuallyreceivecomplaintofthemaboutaftersales.A:Doyoukn ow whycustomerscomplainedthat?
B:Well,theysaidthatthequalityofserviceispoor.Themechanicisnotexpertisetodiagnosemachine’sfaulty.Theser vicefeeishigh.Inaddition,thetimeofsupplying partsisverylongandsparepartsissohigh.A:So docustomershaveanyfeedbackorsuggestions?
B:Eh,theydo notreallylikeit.Becausetheythinkthattheservice’squalityisnotasgoodasotherbrands.A:Doyouthinkwhatisthemai nfactor causedunpleasantofusers?
B:Yesofcourse.Ifqualityofserviceisbad,customerswillnotfeelhappyandstopusingitanymore.A:Thankyouv ery muchforyourmeetingtoday.
1 st interviewee:Mr.NguyenThanhTuan–SalesManager
1.Howd o youevaluate thebusinesssituation of thecompanyi n pr eviousyears(from2
20%.However,from2013to2015itfellbelow17% , forexamplethepercentagei s 15%, 1 6 3 % , 15.5
%i n 2 0 1 3 , 2 0 1 4 , 2 0 1 5 respectively.BesidesthatthepositionofKobelcoi n marketdropdownfrom2ndlevelto4thlevel.
In2013a nd2014, thecuttingofinvestmentm adet h e constructionprojectso f roads,hydropo wer,irrigationstop.
Thecompetitionof heavyequipmentcompanies isgettingmorefiercely.Specifically,beforethere wereseveralbrandss u c h asKomatsu,Cat,Kobe lco,butnowtherei s moreinvolvemento f bigb r a n d s s u c h a s J CB fromt h e UK,Doosan,H yundaif r o m Korea,Sunny,LiugongfromChin a.
E x t e r n a l factors:cu ttinginvestment,more fiercecompetitors. -
Internalfactor:t h e qu alityo f after- salesservice, tradecondition,qualit yo f machine
4.Ist h e r e themainreaso n whycustomerswere notinterested inKobelcoproductsi
C:WithmanyyearsofworkingintheCustomerServi cedepartment,Inoticedthatthequalityofa f t e r - salesservicegreatlyaffectedsalesof t he company
D:thequalityofserviceispoor 5.W h a t things didcustomerscomm ent on thequality of
Servicefeea n d sparepartsofKobelcoaremoree xpensiveabout50%thanthoseofthemarketbutt hequalityisnotoutstanding.
The price and quality of service :
ExperienceaswellasServiceskillsarebad,beca usemostofthemaretechnicalworkers.Ina d d i t i o n , thecompanyd i d notorganizeregularly trainingcourseforthemtoimproveskills.
Thecustomersupportispoor,ittakes02daysf o r mechanicstotroubleshootafterreceivingt h e cu stomers’request.
Ser vi ce st affs’ att itude:
Thewarrantyserviceofsparepartsisshort:6mont hsfromthedatetheprovisionofserviceswhileoth erfirmsoffer12months.
C:We received not good feedback fromcustomersaboutAfterSalesService,forexampl e
-The price andqualityofservice-Servicetime-Service staffs’attitude-Servicepolicy
D:T h e mechanici s n o t expertiset o diagnosema chine’sfaulty.Theservicefeeishigh.Inaddition,thet imeofsupplying partsisvery longa n d sparepartsissohigh.
6.Whichcausei s t h e gre atestimpactont h e q ualityofafter- salesservice?
7.As for negativeresponses of customers, the company hasapproachedsoluti ons toimproveAfterSale sServiceyet?
A: Sales Dept and other relative
Recruitpeoplewithhighprofessionalcompetenc e,raiset h e levelo f skillsf o r technicians
Priceandqualityofspareparts:pricea n d qualit yofthesuppliersshouldbecontrolledo r foundo therbettersuppliers.
C:Currently,o u r companiesa r e consideringa nu mberofsolutionsasfollows:
Improvet h e qualityo f servicei n ordert o tro ubleshoottheequipmentquicklyinordert o mee tcustomerrequirements.
- Improvet h e qualityo f service -Offer reasonablepriceofspa reparts
A:Hi,Mr.Tuan Howdo youevaluatethebusinesssituationofthecompanyinpreviousyears(from2013 to2 0 1 5 ) ? B:Thesituationwasnotgood,salesandmarketsharedroppedthrough03years.A:Canyou tellmemoreaboutthedeclineinsalesandmarketshare?
However,from2013to2015itfellbelow17%,forexamplethepercentageis13%,16%,16%in2013,2014,
+Thecompetitionofheavyequipmentcompaniesisgettingmorefiercely.Specifically,beforetherewereseveralbr andssuchasKomatsu,Cat,Kobelco,butnowthereismoreinvolvementof bigbrandssuchasJCBf r o m theUK,Doosan,HyundaifromKorea,Sunny,LiugongfromChina.
A:Inyourpointofview,istherethemainproblemwhycustomerswerenotinterestedinKobelcoproductsinrecentyears? B:Well,Ithinkthatitisinappropriateafter-salesservicebecauseafter- salesserviceplaysaveryimportantrole,itisthebridgebetweencustomersandcompany.Basedonthewayofdoingser vice,almostthemmaydecidet o continuetousetheproductornot.Aftersellingmachine,wereceiveda l o t o f complai ntfromcustomers becausetheydidnotbetakedcarewell.
B:Eh,customersusuallycomplainaboutproductsdisposal.BecauseKobelcoimportedusedmachinewiththequalityu p t o 8 0 % f r o m J a p a n , t h e n machinewasrepaira n d sold.However,machinei s warrantedmaincomponentslike engine,hydraulicsystemwith0 6 monthsor 1000hourswhichevercomefirst.After06months,Kobelcowillnotbeinch argeofproductdisposalforcustomers.
Especially,usersstronglydonotagreewithcorrectivemaintenanceandemergencymaintenancebecausebotho f them areunscheduledmaintenance.Soitwillcostalotofmoneyifdamagehappens.
B:IthinkinstallingGPPSisthebestsolutionforKobelcotoproactiveafter- salesservice.AfterusingGPSsystem,productivityrisesof50%andcostsdownsignificantly.Sothecontractorwillbem orecompetitiveandprofitableatthesametime.
A:ExcusemeMr.Hieu,asamangerofcustomersupportdepartment,howcanyouevaluatetheafter- salesserviceofKobelco?
B:Oh,t h e after- salesserviceo f Kobelcoi s mainlysupportt o sales.S o iti s actuallyimportantelementcontributestoKobelcobusines s’ssituation.
B:Accordingt o thefeedbacko f customers,statisticshaves h o w n thatt h e qualityo f a f t e r - s a l e s servicesaccountedfor70%ofthepurchasingdecisionsofcustomers.
B:Asf o r customerswhohaveu s e d Kobelcomachineforshorttimea n d longtime,t h e y saidthattheydisappointed withpositiveserveofKobelco.Aftersalesserviceisunprofessionalandefficient.
B:Well,accordingtotheprocessofservice,themechanicswillcontacttoend- usersformaintenanceforthefirst50hoursofoperation.Duringrest,customersmustactivelyrequestservicefromtheco mpany.Therefore,t h e y supposedthatthewayofproviding Kobelcoservicewasnotprofessionalandefficient. A:So doyouthinkthisisthemainreasonofbadbusinesssituationincurrent?
B:Yes,I t h i n k s o Becauseinappropriateafterservicet o o k b a d effectt o customers’business.Theyf e l t unhappy Sotheydo notintendtobuymoremachineinthefuture.
B:Yes,therearefourfactorswithinactivityofafter-salesservice:reactiveafter- salesservice,customercare,fieldtechnicalassistantandsparepartsdistribution.
B:Weusuallymadeannualcustomerservicereporttorecordlevelofcustomersatisfaction.Fromreport,wef o u n d t hatcustomersareinterestedinfiledtechnicalassistantandcustomercare.Theydon’tnotlikesparepartsdistributionso muchduetolongtimeorderanddeliveryofspareparts.Especially,theyareunhappywithreactivepost salesservice. A:Sowhatisthekeyfactor?
B:BODofKobelcoisconsideringsomesolutionsinordertoprovideproactiveafter- salesservicetocustomers.Proactiveafter– salesserviceisthebesttypeofserviceforheavyequipmentcurrentlybecauseitwillsupportsu s overwhelmthelimitati onofreactiveafter- salesservice.Forexample,therearenotmanycustomerswhoc a n predicttheproblemofmachineandaskforservicei nordertoavoiddisruptionmachine’soperation.Orcustomersaredifficulttorecognizethedefectofequipmentuntilth eproblemhappens.Generally,proactiveafter-salesservicebringsthehighestsatisfactiontoEnd-users.
B:Well,increasingnumberofmechanicsforcustomersupportdepartment,openingmoreservicecentersinsomeofma jorareaorinstallingGPStomachinearesomepotential solutionsnow.
B:IthinkGPSistheoptimalchoicebecauseKOMEXShavemany advantagessuchassavingtimeandcost.Besidesthat,itcandiagnosticsdeviceaccuratelythanhumans.SoIthinkthatin vestinginKOMEXS ismoreefficientopeningnewservicecenters.Wealsoreceivedpositivefeedbackswhenwegetcustomers’idea.A:Manythanksforyourinterviewtoday.
A:HiMs.Nha.WhatdoyouthinkaboutthebusinesssituationofAfterSalesServiceSectioninrecentyears?B:During threeyearsfrom2013to2015TheRevenueof After-
B:Ithinkthisisinformationprovision.Therewere98%ofclientswhocomedirectlytoofficeandorderparts,o n l y 2%o fcustomerscalledforbuying.Companyhadnotstillsetupsystemofpurchasingonline.Therefore,informationprovisio nwaslimitedforcustomertoaccessandcontactquickly
B:Actually,theseproblemscansolveinshortterm.Becausetheyarenotseriousproblems.Currently,ourcompaniesar econsideringanumberofsolutionsasfollows:
B:Eh,theydonotreallylikeit.Becausetherewasnoperiodicinspectionorpreplannedmaintenanceactivities,Kobelcose rvicecouldnotcontrolstatusofmachine.Whenfailureoccurredsuddenly,emergencymaintenancei s prioritymethod toconsidersolvingtheproblem.Theincurredfeewasveryexpensivewhichwashighert h a n planfromfour toeighttimes.Thereweresomereasonsasfollows:
B:Yes,ofcourse,CustomersstronglycomplaintthatKobelcodidnothaveplannedmaintenanceinperiodica t jobsitec omparedwithothercompetitorsKomatsu,Hitachia n d Huyndai.I s u p p o s e d thatunscheduledactivitiesofreactive after-salesserviceimpactnegativelyonafter-salesserviceofKobelco.
B:Iamquitepleasedwiththequalityandthefuelconsumptionofthemachine.Asusual,machinesaves30%f u e l compa redtootherbrands.However,after-salesserviceisnotgood.
B:Servicedepartmentlacksproactiveinthemaintenanceofthemachine.Kobelco’smechaniccomestocheckt h e mac hineonlyonceaftermachinehandling.Ourstaffshavetorequireservicefornextinspections.Sowewouldnotbeforewa rnediffailshappened.
B:Isuggestthatcustomersupportdepartmentshouldtakecarecustomerscarefully.Incase,mechanicscann o t supp ortus 24/24,companyshouldconsidertoapplyusGPSsystem.We c a n followupourmachinesanytimeatanywher e.Itisveryconvenientandfreedom.
A:IsaKobelcodealer,doyouhaveanyadvantagesanddisadvantagesinthedistributionKobelcomachinest o users? B:TheadvantageofsellingKobelcoexcavatorisquitefavoredforcustomersinSouthernmarket.However,wehave notreceivedpolicysupportfromKobelco’sserviceyet.
B:Becauseweareonlyanintermediaryintransactions,Kobelcostillhastoprovideafter- salesservicetofinalusers.Ioftengetcomplaintsfromcustomersafterbuyingourmachines,theydonot getthetaking careofservicefromKobelcowhileotherfirmssuchasKomatsu,Hitachi,doitverywell.Therefore,hopefullywec a n getthepositiveafter- salesservicefromKobelcolikemakingperiodicinspectionatjobsite,scheduledmaintenance,etc.Ithinkwearehapp yandcustomersarehappytoo.
1 st interviewee:Mr.NguyenThanhTuan–SalesManager
2 nd interviewee:Ms.PhanThanhNha–SeniorPartsSection
3 rd interviewee:Mr.TrinhXuanThang–Senior ServiceSection
4 th interviewee:Mr.NguyenTrongHieu–CustomerSupportManager
1.Howdoyouevaluatet hebusinesssituationo f t h e companyi n pre viousyears(from201
Thesituationwasnotgood,salesa n d marketshare droppedthrough03years.
Well,from2009 to2012,themarketsharewasabout19%- 20%.However,from2013to2015i t fellbelow17
%,forexamplethepercentagei s 1 5 % , 1 6 3 % , 15.5%in2 0 1 3 , 2 0 1 4 , 2015 respectively.BesidesthatthepositionofKobelcoin marketdropdownfrom2ndlevelto4 t h level.
3.Ist h e r e t h e mainprob lem whycustomerswereno tinterestedinKobelco productsi n recentyea rs?
A:Iti s inappropriateafter- s a l e s servicebecauseafter- salesserviceplaysa veryimportantrole,itisthebri dgebetweencustomersandcompany.Basedonth ewayofdoi ng service,almostthemmaydec i de t o continuetousetheproductornot.After sellingmachine,wereceiveda lotofcomplaintfro mcustomersbecausetheydi d n o t b e takedcarew e l l B:Becauseinappropriateafterservicetookbadeffe ctt o customers’business.T h e y feltunhappy.S o t heyd o n o t intendt o buymoremachineinthefutur e
Thereforewhenmachinei s failure,emergenc ymaintenancewillbe t o o k torepairmachine.
Thereweren o t plant o visitcustomersa t jobsi teinperiodic
Customersupportdepartmentdidnotfindou tthe difficultiesof usinga nd operatingmach ine.
-Reactive after- salesservice: correctivemaintenance andemergencymainten ance
-Customer care:Informationprovis ionand warrantyextension-Field
A:B:E h , customersusuallycomplainaboutprodu ctsdisposal.BecauseKobelcoimportedu s e d mac hinewiththequalityupto80%fromJa p a n, t h e n machinewasrepairandsold.However,machineis warrantedmaincomponentslikeengine,hydraulic system with0 6 monthsor1000hourswhichevercomefirst After06months,
Especially,usersstronglyd o notagreewithcorrec tivemaintenanceandemergencymaintenancebec ausebothofthema r e unscheduledmaintenance.S oitwillcostaloto f moneyifdamagehappens.
B:W e usuallymadeannualcustomerservicerepor ttorecordlevelofcustomersatisfaction.Fromr e por t , wefoundthatcustomersareinterestedinfile dtechnicalassistantandcustomercare.Theydon’t notlikesparepartsdistributionsomuchduetolong timeorderanddeliveryofspareparts.Especially,th eyareunhappywithreactivepostsalesservice.
Customerarepleasedwi thfieldtechnicalassistan tandcustomerc a r e Theyareunhappywithre activepostsalesservice
6.Whati s keyfactormade unsatisfactoryof cust omeraboutafter- salesservice?
B:Reactiveafter- salesservice.Becausecustomersmustcontactt o c ompanywhenmachinehasproblemo r theyn e e d technicalsupport.
D:CustomersstronglycomplaintthatKobelcod i d nothaveplannedmaintenanceinperiodicatjobsite comparedwithothercompetitorsKomatsu,Hitach iandHuyndai.Isupposedthatunscheduledactivitie sofreactiveafter- salesserviceimpactnegativelyonafter- salesserviceo f Kobelco.
7.After delivery,servicesectio ngivesa nyinstruction
Ascompany’sprocedure,onl y pre- deliveryinspectionisimplementedatstockyard.T hus,buyerdoesnotknowhowtooperatecorrectly a s wellasdomaintenanceonschedule.
Itcausedheavydamagebecauseitdidnotfollowop erationinstruction.Additionally,unplannedmaint enancemadethelifeofequipmentdecreasedandu npredictabledamage.
10.Asf o r negativerespo nsesofcustomers,t h e co mpanyh a s approacheds olutionstoimproveAfter
A:Ofcourse,SalesDept.a n d otherrelativeDept.c onsideredtotakecarecustomerbyappropriateafte rsaleslikethat:
-Openmoreservicecenter B:BODofKobelcoisconsideringsomesolutionsi n ordert o provideproactivea f t e r - salesservicetocustomers.Proactiveafter– salesserviceis thebesttypeofserviceforheavyequipmentcurrentl yb e c a u s e itwillsupportoverwhelmt h e limitati ono f reactiveafter- salesservice.Increasingnumberofmechanicsforc ustomersupportdepartment,o p e n i n g moreserv icecentersinsomeofmajora r e a o r installingGPS t o machinearesomepotentialsolutionsnow.
Becausetheya r e notseriousproblems.Currently, ourcompaniesareconsideringanumberofsolution sasfollows:
A:IthinkinstallingGPPSisthebestsolutionf o r Kobelcotoproactiveafter- salesservice.AfterusingGPSsystem,productivity risesof 5 0 % andcostsdownsignificantly.S o t h e contractorwillbemorecompetitiveandprofitable atthesametime.
B:I thi nk GPSi s theoptimalchoicebecauseKO MEXShavemanyadvantagess u c h assavingtim ea n d cost.Besidesthat,itcandiagnosticsdeviceac curatelythanhumans.SoI think thatinvestinginKOMEXSismoreefficientopenin gnewservicecenters.Wealsoreceivedpositivefee dbackswhenwegetcustomers’idea
Groupinterviewincludes05Dealersand05End-UserswhohavetriedGPSsystem(KOMEXS)
Users:W e foundthatt h e specialfeaturethatbringsKOBTRAX extremelyhelpful.Throughacomputerorphonewecanknow wellthenecessaryinformationofmachine:
OperationHoursinEachWorkMode(Economy,Power,Brea ker,Lifting)
With KOBTRAX, my dealer tracks machine hours and locations, handling service whenever needed, which eliminates the need for a shop or mechanic This not only saves me money but also simplifies my life, allowing me to focus on what I do best—moving dirt KOBTRAX is an easy-to-use system that enhances my business operations Additionally, we have faced challenges with equipment vandalism and theft; however, with KOBTRAX's automatic shutdown and engine lock features, we aim to minimize these risks effectively.
Initially focused on tracking machine hours, I quickly evolved to a comprehensive understanding of my equipment's needs Within a year, I transitioned from a "if it ain't broke, don't fix it" mentality to proactively predicting and scheduling downtime for maintenance and major overhauls By identifying which operators excel in specific applications and on particular machines, I have significantly enhanced productivity and efficiency, reduced ownership and operating costs, and extended the lifespan of my equipment.
Through KOBTRAX and its integration with Komatsu’s Troubleshooting Support System, we successfully diagnosed a machine from 1,200 miles away This advanced information system enhanced machine availability and significantly lowered repair costs, as the technician was well-informed about the specific issues and required parts Consequently, he was equipped to restore the machine's functionality on the first visit.
In the past, we relied on customers to notify us when their undercarriage needed attention, often leading to excessive wear and the need for replacement By utilizing KOBTRAX for machine monitoring, we established a proactive approach, scheduling undercarriage inspections every 500 hours and adjusting intervals based on our findings and reported crawler pedal/travel hours This strategy allowed us to identify issues before they became critical, enabling owners to anticipate undercarriage replacements and ensuring we had necessary parts readily available.
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