Does Your SPM Solution Do This? Shrink Your Parts Inventory and Increase Your Profits

Written by: Bradley Rhoton

Of course you want to get the biggest return on your investment in parts inventory. No one wants a room full of parts that have been collecting dust for 1, 2, 3+ years. You especially don’t want to lose customers because your room full of parts doesn’t contain the ones that you actually need today.

But, how can you ensure you’re stocking the right parts? How do you make sure you have them exactly when you’ll need them? And, how can you make sure you’re getting those parts for the right price? Service organizations that significantly invest in parts management report increases of up to 30% in parts availability with up to 50% less inventory

Want to experience those results? By finding a service parts management (SPM) solution with the capabilities below, you’ll be able to shrink your inventory while increasing your profits and customer satisfaction.

Does your SPM solution do this?

Advanced forecasting. Your SPM solution should be able to help predict which parts you’ll need and when you’ll need them. An SPM solution should do the heavy lifting—using statistical algorithms, installed base data, and the product’s maintenance history—to help you make smart inventory decisions.

Multi-level inventory optimization. As a service leader, you want your service organization to perform well across all supply chain levels. You need to know the lowest-cost parts inventory levels—with churn control. A solution with advanced optimization solvers helps you get data you need.

Advanced order planning. You should be able to tell your system how you want to buy, replenish, and repair materials throughout the service supply chain. This means you can manage schedule changes effectively and rebalance parts inventories throughout the organization.

Performance-based stocking. For complex assets like aircraft, defense systems, and utilities, you need to be able to plan and stock supplies of service parts. This means you can guarantee desired levels of product uptime or service availability.

Network optimization. Your solution should allow you to determine the optimal network of stocking locations. This helps you minimize facility and transportation costs while also meeting your customers’ needs.

Lifecycle analysis. You need to manage all transitions in the product lifecycle. From initial provisioning for the product’s introduction, through multiple product configuration changes, all the way to the product’s end of life—you need to be able to analyze each phase, and plan and stock supplies through all of the changes.

Parts locator. Your service team needs a system that allows them to identify and order the best part for the service task at hand—in real time—even if parts reside in multiple back-end inventory systems.

How does your SPM solution stack up? Does your storage room contain stacks of parts that are under a thick layer of dust? Are you ready to spend less on parts, shrink your inventory, and increase your profits? Your SPM solution should support your efforts to run a lean and agile service organization. Learn more about how you can turn parts to profits in our white paper.

PTC Parts for Profits White Paper

Learn how PTC’s Service Parts Management solution stacks up.

Tags: CAD Retail and Consumer Products Connected Devices

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.