Spare parts inventory:
Canon keep lot of spare parts that only has a few percentage to be damage such as solar cell, ink-jet roller, PCB etc , it is because Canon understand after sales services is essential to retain the customers and keeping the goodwill in the markets. We see lots of the spare parts in their warehouse do not turn for a few years even some were more than 10 years. This can strengthen the response of the repairing of defect items and also speed up the transit times in case of the small defects found in the whole lots of goods. Canon is a Japanese corporation so that they keep lots of packaging materials also in order to comply with the conscientious and meticulous standard.
Dead stock disposal:
We think all of the corporation should have their own dead stock, whilst Canon also has some of the dead stock in their warehouse, although the style has been phase out and not easy to sell in the market, manager has mentioned that they will not write off the dead stock, as this can be free to some non-profit organization for promoting the CSR and also to achieve the promotional effect. In addition, in order to respond to the environmental protection, some of the common parts such as keypad, PCB etc, they will reuse the materials for recycling or refurbish the items for hot sale. The reverse logistics will take place, as it brings back lot of unsold items and materials. As the items were coming back from worldwide, thus HK is a right place for consolidation and sortation.
You make think that this is a very easy topic, keep lots of stock in peak season and keep less stock in low season. But I want to tell you, you are right but only partly. Actually, they are sure to keep...