Forecasting also a main challenge in Spare Parts Management

Emile van Geel   |   June 04, 2013   |   High tech   |  

May 29th the second EyeOn Spare Parts Management idealab took place. This time it was held at the Ericsson service center in Rijen, The Netherlands , were also a company tour and an Ericsson presentation were part of the visit. Experts from Ericsson, FEI, ASML, Nacco, Arjo Huntleigh and Damen Schelde Naval Shipbuilding were represented. Although the industries of these companies are quit different it turned out that the challenges were very much the same.

One of the main challenges is to obtain the best possible spare parts demand forecast. Inaccurate forecast can easily lead to underperformance in service level agreements, with potentially significant penalties as a result.  Inaccurate forecast can also lead to long term problems with obsolete inventories.  Creating the best possible forecast is not only a matter of following the right statistics it also requires the correct system set up for installed base, maintenance, defect rates. Next to this the impact of new contracts for new customers is very important to understand. It often boils down to the correct understanding of what the customers really thinks is important for them and what service should be provided at the right costs to make the customers happy.

Because of the great interest the idealab will be continued in the fall of 2013.

Spare Parts Management: A very challenging and interesting  area of planning!

Emile van Geel

Emile van Geel

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