After-Sales Service Management at LAVA

After-Sales Service Management at LAVA

  • Case
  • Teaching Notes

The case study documents a unique study in forecasting technique for a low cost mobile handset company, LAVA International Ltd., India. The company was making and selling two affordable smart phones – Lava and Xolo – in the face of stiff competition from local and international players. In an effort to improve its market share and create a niche for itself in the hypercompetitive environment, the Global Supply Chain Head decided to rethink the strategy for the aftermarket. The objective was to achieve the best possible after sales service by turning around the inventory model from consumption driven to demand driven order quantities. This was based on the core principle of demand for stock, led by handsets under warranty instead of ordering based on actual consumption of spare parts. This not only reduced costs drastically, but also significantly enhanced service efficiency. The results obtained can be achieved by other emerging market companies in similar value segments such as this one in India.

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