White Paper
Service Parts Management: The Linchpin to Successful Service Operations
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According to Gartner, the typical company provides support services and parts for an average of seven years after an initial product sale, making service parts planning vital. The key driver of effective post-sale support is service parts management. What about planning for products that have intermittent demand?
- Aftermarket parts and service areas have profit margins as much as 10 times those for initial product sales.
- Post-sale service is key to securing customer loyalty, fostering the company brand, and maintaining competitive differentiation.
- Aftermarket service and parts account for 20% to 30% of revenues and about 40% of total profits for most manufacturers.
This white paper describes how Service Parts Planning and Optimization (SPP) is the linchpin of any effective service operation, and explains how to plan and align service parts inventories, resources, and processes to ensure optimal customer service and response with minimal risk and cost. Overcome the challenges of planning products with intermittent demand.
MORE ABOUT THIS EBOOK:
- WHO SHOULD READ THIS EBOOK?
Business leaders who face challenges of service parts management
- WHAT CONCEPTS ARE COVERED IN THIS EBOOK?
This white paper describes how Service Parts Planning and Optimization (SPP) is the linchpin of any effective service operation, and covers intermittent, low and lumpy demand, probabilistic replenishment, and a real-world example of how a company improved forecast accuracy to reduce inventory investment.
- WHY THIS EBOOK IS A MUST READ FOR SUPPLY CHAIN ORGANIZATIONS
Creating an integrated SCM-ERP ecosystem doesn’t have to be a costly and complex journey, if you choose a path that avoids common pitfalls. This white paper describes Logility’s template-based integration with ERP systems that ultimately helps to shorten timelines, reduce team size, lower costs, and mitigate risk.