Advice from two companies on more profitable service parts management

Written by: Bradley Rhoton
service parts management, field service

Companies that distribute and sell service parts can struggle to manage both pricing and the global supply chain. How do big companies do that successfully? 

Hear from PTC two customers, JLG and Metso, about how they optimized their service parts inventory, in different ways, with both companies have realizing impressive results. 

Understand your position in the marketplace to price competitively. 

JLG’s customers believed that their prices were the highest in the industry. The company understood that to remain competitive on its replacement parts business, and to price its service parts competitively, they had to compile and analyze data about how its competitors were pricing their products.

“We wanted to adapt our pricing to the market, solidify our competitive position, and have a system that measured success across our many product lines." - Dali Ribeiro, Parts Pricing Manager at JLG.

Read the full story, JLG Takes a Fresh Look at Service Parts Pricing, and read how they were able to put the customer first.

Find efficiencies in your global supply chain.

Metso knew there had to be a better way to manage service parts and centers in more than 50 countries. So they looked to implement a global view of their supply chain rather than treating each of their warehouses separately. When they stepped back and integrated their supply chain so that each product line wasn’t siloed within their 39 stock locations, they were able to reduce their inventory on hand by 32M EUR.

"We couldn’t look at our supply chain as a network of independent locations anymore, it’s not the most optimal for our customers. We have to have parts available at the correct place and at the correct time. " ~ Sébastien Bergé, Metso Manager of Services, Global Process Development

Read the full story: Metso Implements SPM in the Cloud, and read how they unearthed value in the cloud.

How can service parts optimization change your business?

JLG saw improvements from making this change within their first year after implementation. Metso saw a 3.4% increase in on-shelf availability and an 18% increase in inventory turns.

Watch “Journey to True Optimized Inventory - Two Winning Strategies” webinar to discover how these two market leaders are navigating their service transformation journey and where they are taking this journey in the future. 

PTC Optimized Inventory Webinar

Tags: CAD Service Lifecycle Management (SLM)

About the Author

Bradley Rhoton

Bradley Rhoton is the Marketing Manager for the Servigistics Business Unit at PTC. He leads and organizes the Servigistics client affinity group organizations and facilitates best practice sharing and knowledge transfer between PTC, PTC clients and industry thought leaders. For 13 years he has worked closely with Servigistics clients to help capture their service program accomplishments and share their success stories.