Service Parts Planning includes operations for the sourcing and distribution of service parts (spares and accessories) within an integrated logistics network.
Service Parts Management capabilities involve all activities for the planning and execution of services and spares, including planning, fulfillment, execution, collaboration, and analytics. Objective is to meet customer expectations (service levels, delivery reliability) and to achieve outstanding operational performance.
In that context, Inventory Management deals with having the right parts in the right amount at the right locations. Defining the appropriate level of safety stock at each location and the right replenishment quantities remains as important as in traditional supply chains. The deployment of the available stock across the network often becomes a challenge considering the complex distribution network and the high number of service parts characterizing the aftermarket environment.
Among the biggest challenges for service parts planning are:
Deloitte’s approach embeds a service parts management diagnostic, a methodology with a capability maturity model and proven support material. With the diagnostic, we are able to identify significant potential for improvement in selected service parts logistics areas.
One way of achieving operational performance can be the implementation of a service parts planning software.
Deloitte works together with SAP SPP, the world class software solution enabling optimization of spare parts planning and inventory management. This alliance has already led to success at the Ford Customer Service Division (FCSD) where forecast accuracy has been improved, inventory level reduced and service level increased.
Deloitte is also engaging collaboration with MCA, the ‘best-in-breed’ software solution focusing on tactical planning for service parts. SAP SPP and MCA are in the meantime offering a joint solution taking the best of both systems, while ensuring smooth integration with existing SAP instances.