| With China's continuing and rapid economic development in recent years, the construction machinery industry has shown a good trend of rapid development; therefore the demand and use for construction machinery grow in a high speed. Lots of foreign construction machinery manufacturers enter the Chinese market after another, and then the competition becomes more and more intense. The high-quality after-sales service is a key factor for foreign company in China to improve competitiveness and enhance the overall advantage, and it is based on the establishment of an efficient, reliable and economic after-sales parts logistics network for the Chinese market. However, when foreign construction machinery companies design the parts logistics network, they often over-emphasize the successful experience got from mature markets in other countries. As in a long term now and later, most of the after-sales service parts production still needs to be produced and then imported into China, its business process fully involves the international logistics. But they usually lack of awareness on the complexity, comprehensive consideration on "China's basic conditions of Logistics" as well as the strategy and methods to deal with the lack of local environmental challenges. Accordingly designing errors occur and business suffers loss.This article first introduces the research background, research current status and the methods, and then reviews the relevant theories. After that, it analyses the characteristics of construction machinery parts logistics and customers' key requirements, and then the network designing principles and success factors have been studied. Based on this, the paper analyses an actual case from a foreign construction machinery manufacturer HRD who faces many challenges in China. Accordingly it explores the strategy and presents the corresponding solution. Finally, the relevant conclusion is made.
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