Developing a Service Parts Management strategy?

Many companies do not manage their parts service inventory and location effectively. Product manufacturing organisations frequently use their manufacturing supply chain to support service parts. However, manufacturing supply chains are not suitable to support service parts. In addition, this is often combined with a decentralised process approach, grown through acquisitions and country specific business models. Organisations must align, adapt or even transform to become fully customer-centric. This means not only selling the product, but guaranteeing uptime, capacity or the continuous use of a product.

But how to start? Let’s take the example of a large global engineering organisation.

The challenge Noventum identified was the absence of service parts management due to the fact that parts were taken from the manufacturing parts production and there was no dedicated service parts inventory. The objective was to achieve best in class service parts management that could:

  • Improve customer satisfaction and retention
  • Reduce inventory carrying costs
  • Improve product uptime and availability
  • Increase service profitability
  • Increase service revenues

 

Undertaken as part of a larger service strategy review, Noventum focused on the activities pertaining to service parts management, including:

  1. Assessing the service parts organisation
  2. Defining the Vision for Parts Management
  3. Getting a decision from the board

Read here the case study how a company managed to create a service parts vision and strategy.

Read the case study