Idealab "Spare Parts Management”
December 19th the first idealab on the spare parts management topic was held. Three companies from the High Tech network joined the idealab.
Spare parts management shows additional dynamics that make it a very challenging planning subject. Clear is that the aftermarket playground when managed properly often is much more profitable than regular sales.
The major challenges are to find the delicate balance between very aggressive service level agreements and inventory investments. Underperforming can lead to serious penalties, f.e. response time and uptime related. At the same time overperforming can lead to exponentially rising inventory costs without corresponding additional profits.
Accurate knowledge on installed base numbers and fail rates can mean significant healthier initial parts inventories with less inventory risks. Good alignment between engineering and supply chain management is key to obtain this. Class “A” master data management certainly is a key enabler to achieve operational excellence.”