Capping IT Off

Capping IT Off

Opinions expressed on this blog reflect the writer’s views and not the position of the Capgemini Group

The Enigma of Service Parts Planning

Experience and studies have shown that service parts planning by manufacturers is usually an afterthought.  Manufacturers try to fit service parts planning into the same planning models used for the production line. Guess what it doesn’t work very well.

In a recent article, Aviation Week [MRO Edition; Apr  7, 2014], stated that technology can be a the game changer for service parts planning - “Done right, the solutions can reduce inventory levels among parts that fit the intermittent demand profile by 15-30% while improving service levels, according to the solution providers.”  The major difference from the production environment for service parts planning is the intermittent demand cycles.

Service Parts demand can come from numerous aftermarket operation sources:

  • Maintenance and repair activity
  • Online and over the counter part sales
  • Component repair cycles
  • Warranty campaigns
  • Product improvement campaigns
  • Product reliability in-service demand

With these varied demands, adding in additional planning impacts such as advance spare parts sales for new product roll-outs, seasonal and environmental impacts; one has a need for multiple types of models to help aftermarket organizations plan and optimize their service parts.

Once an aftermarket organization can confidently predict their demands, then, they can work with their manufacturing parts planning counterparts on streamlining purchasing, warranty planning, new product planning and product modification programs.

With the right tools, resources and processes, aftermarket organizations can solve the service parts planning enigma and improve on the company bottom line through increased sales at lower inventory costs.

Capgemini has access through our Service Lifecycle Management Partners to provide the technology to help clients optimize their service parts planning activities. Capgemini also offers the ability to provide services and tools for analysis, predictive analytics and engineering resources to help clients do the quantitative analysis of the information to feed the new models that partners can offer.
For more information feel free to reach out to me at:

About the author

Peter White

Leave a comment

Your email address will not be published. Required fields are marked *.