LiuGong talks aftersales investment in the GCC
Benjamin Zhu explains how LiuGong has slashed its spare parts waiting time by up to 28 days in the Middle East
Historically, a common criticism of Chinese equipment manufacturers has been that – despite their competitively priced machinery – they have been a little off the pace in terms of aftersales support.
Benjamin Zhu, general manager of LiuGong Middle East, is only too aware of this perception, but he has no intention of allowing his employer to be tarred with the same brush. Since assuming responsibility for the firm’s activities in the Middle East and South Africa at the beginning of this year, Zhu has made aftersales support and spare parts provision his number-one priority.
“LiuGong has been present in the Middle East for some time, but this was only in the form of sales offices,” he told PMV.
“In 2010, we established a parts distribution centre (PDC) in the UAE, and we recently opened a similar facility in South Africa. Today, we stock around $5.5mn of spare parts in Dubai, and approximately $3.5mn in Johannesburg.”
This investment certainly seems to have paid off. In conjunction with its regional distributors, LiuGong has succeeded in slashing waiting times for local customers.
“Before we established our regional PDCs, dealers were not able to keep the full range of our spare parts in stock,” said Zhu.
“There were occasions when customers had to wait up to 30 days for some parts. Now, we are able to deliver parts to users within two to three days,” he added.
But it is not only customers who are benefitting from LiuGong’s commitment to aftersales support. Zhu and his colleagues are also reaping the rewards.
“We have succeeded in securing a range of key accounts across the region; more than 40% of our current sales come from repeat business,” he revealed.
With the recent launch of LiuGong’s H Series wheel loaders, and the upcoming Middle Eastern introduction of its E Series excavators, 2015 could prove to be an excellent year for the Chinese manufacturer.