4 Problems Service Organizations Face Without SPM Solutions: Interview with Steven Caldwell (Part II)

In Part One, we highlighted a couple of thoughts from PTC Service Parts Management Solution Manager Steven Caldwell. Caldwell spoke about two challenges associated with managing service parts through ERPs, spreadsheets, and other applications that aren’t built to support SPM.

Here are two other problems you may face when not using a service parts management system:

3. You’ll Miss Out on Measurable Financial Opportunities

Problem: You’ll miss out on the measurable financial opportunity you’d get from an SPM solution. If those last two problems didn’t convince you that PTC Service Parts Management will set you apart from your competitors, this one might. Caldwell pointed out that PTC Service Parts Management customers have:

• Decreased inventory between 10% and 35%.
• Increased margins between 3% and 8%.
• Improved parts availability between 10% and 25%.
• Experienced a program ROI of between 100% and 900%.
• Raised customer satisfaction between 5% and 25%.

Imagine if your service organization was the one that got a 900% return on your investment in an SPM solution—that investment is a no-brainer!

Here’s an example. One PTC Service Parts Management customer, StandardAero, experienced a $3.2 million reduction in excess inventory while also improving customer satisfaction through increased asset uptime. 

Caldwell said that “a mature service parts management solution can build a compelling business case using advanced simulation techniques on your data to accurately project measurable, hard financial ROI and, more importantly, deliver those results. It is important to choose an SPM solution with a proven track record of delivery.”

4. Parts Won’t Be Available When They’re Needed

If your system can’t help you analyze your inventory and predict which parts you’ll need next week or next month, your service organization will suffer.

“Poor part availability can lead to a variety of well-known negative consequences such as lost revenue, reduced customer satisfaction, increased equipment downtime, missed SLAs and lower profit,” said Caldwell.  

“Furthermore, a proven spare parts inventory optimization solution is becoming increasingly important as service organizations move to offer outcome-based service models in response to market demand and increased competition.”

Are you encountering these problems?

Is your service organization experiencing one, two, or all of these problems? Do you want to decrease inventory levels, increase margins, improve parts availability, and increase customer satisfaction? Then an intuitive SPM solution will help solve your problems.

Learn more about how PTC Service Parts Management (SPM) can optimize your processes through multi-echelon optimization.