Spare Parts Planning
A quick and reliable supply of spare parts for successful after-market service is growing in importance. The time it takes to repair a product is heavily dependent on the availability of a part. It is a growing challenge to secure this availability as products and their parts become more complex. Maintaining optimized stock levels, without unnecessarily tying up capital is of utmost importance.
Overview
It is safe to say that the management of spare parts has earned its designation as the supreme discipline of logistics planning. Aside from quick and dependable delivery service, customers expect reliable information regarding price, availability and delivery times. Several challenges stand in the way of making these lofty service promises. Due to variable, fluctuating requests and sporadic sales, predicting demand for spare parts is no easy task. Based on this high level unpredictability, many companies tend to hoard stock in an effort to reduce repair times by increasing the availability of spare parts.
News
Blog
Contact
Andreas Schäfer
Consultant
Tel: +49 (0) 2408 / 9456 - 1333 A.Schaefer@informinform-software.com
Solution add*ONE Features
With add*ONE, mathematical algorithms are used to support everyday operations and strategic business decisions in spare parts planning and logistics. Product features include:
- Self-adapting forecasts
Detailed determination of the future demand situation with no manual maintenance required, including the identification of trends, outliers, seasonality and sporadic demand
- Profile Parameters
Firm planning of inhomogeneous article assortment through the upkeep of important planning-relevant controlling parameters at the article or article-group level
- Dynamic Safety Stock
Dynamic adjustment of safety stock levels based on high quality demand forecastsy to ensure the right stock is in the right place at the right time
- Calculation of cost-effective order proposals
Dependable decision proposal for each article using an intuitive workflow that identifies the need for immediate action or controlling
- Management by Exception
The software eliminates routine tasks, automatically showing planners which actions need to be taken to avoid i.e. stock-out situations. Intuitive graphical displays show planners the most urgent tasks to complete, enabling them to manage by exception.
- Life-cycle management strategy
Ensure the required spare parts are available throughout the entire lifecycle of a product while taking availability, costs, quality and environment into consideration.
- Automation
Simple control and maintenance of a large assortment of items through automated processes, i.e. automatic order approval of items with high forecast quality
- Network planning
Synchronous planning of demand across all levels of a network structure
Benefits
add*ONE enables a high service level while minimizing stock levels through the use of decidedly accurate forecasts - even with sporadic consumption behavior. With add*ONE you can expect to:
-
Maximize availability
Obtain a delivery capacity of close to 100% through high-quality planning.
-
Minimize effort
Reduce your planning effort by 25 to 50% through the reliable automation of purchasing decisions.
-
Reduce inventory
Reduce your inventory by up to 40% while at the same time increasing availability.
-
Reduce procurement costs
Cut procurement and inbound logistics costs with optimized orders and batch sizes
-
Create transparency
Gain an overview and control over your entire inventory assortment
-
Recoup investment
Experience a return-on-investment within months of your purchases.
Automotive After-market
After-market Wholesale in the Auto Industry
The spare parts management business has attractive margins for many manufacturers. Car manufacturers, independent wholesalers and suppliers, auto repair shops and distributors are all competing for a share of the 165 billion Euro spare parts market in Europe. The high level of competition forces suppliers to continually monitor market trends and expand their product offering based on consumer demand. This poses great inventory challenges in the spare parts planning process. Many large automotive after-market wholesalers have turned to add*ONE in order to ensure the availability of various parts, reduce delivery times and create a stable planning process.
Forecasting technique
Optimzed forecast and demand planning
Effective spare parts planning can be achieved through the use of precise demand forecasts. If a company is working with inaccurate forecast data, obtaining optimized inventory levels will remain elusive.
add*ONE presents users with a powerful demand forecasting tool. Scientifically proven statistical models calculate reliable demand predictions using industry-specific forecast algorithms. These algorithms are especially helpful in the wholesale of spare parts where sporadic demand poses an extra challenge.
References
Contact
Do you have questions, comments or require more information? Please give us your feedback!