With the increased volume of new product introductions and product variants to support a global marketplace the high number of SKU’s to support the aftermarket business, forecasting future parts demand becomes very challenging for companies to do due to the complexity of planning for stock replenishment and machine down situations. Service Parts Planning includes operations for the sourcing and distribution of service parts within an integrated logistics network.
Service Parts Management capabilities involve all activities for the planning and execution of services and spares, including planning, fulfillment and execution.
The objective is to meet customer expectations of service levels, delivery reliability and to achieve outstanding operational performance in the areas of improved parts availability, inventory reduction, parts obsolescence and costs.
The challenges for inventory management teams are in having parts in the right quantities in the right locations whilst reducing inventory-carrying costs. In addition with the complexity of your global network coverage and the increasing need for promised delivery times having available stock across your network is a challenge in supporting your service strategy. Where we can help you:
- Stock deployment / inventory management
- Demand analysis/Forecasting
- Inventory optimisation
- Planning parameter setting
Typical project benefits, achievable within Parts Planning:
- Improved forecast accuracy 5% to 15%
- Order fill rate 3% to 7%
- Increasing service levels OTIF 3% TO 5%
- Optimising inventory (5%) to (10%)