Service Parts
Management

Service Parts Management

For today’s service organisations, meeting and exceeding stringent requirements while delivering world class service is essential in order to stay competitive in the dynamic and global economy.

Some of the multifaceted challenges that service organisations face include compound part relations, demand prediction, multiple supply sources and complex supply chain flow. Accurate service parts forecasting is challenging when considering a mix of slow and fast-moving parts with sporadic demand.

Solution

CAD-IT has a fully-integrated solution for service parts management to increase parts availability while reducing inventory costs.

CAD-IT’s Service Parts Management solution specifically addresses the challenges and opportunities of global service supply chains, enabling service organisations to maximise their local and global potential, delivering world class customer service while balancing and reducing costs.

Connected Service Parts Management

With connected assets, service organisations can utilise data from the assets to forecast and plan spares demand to:

  • Increase visibility of the install base size, including asset location and utilization
  • Build a consistently reliable data source to perform causal forecasting

CAD-IT’s Connected SPM enables service organisations to increase forecast accuracy, reduce inventory investment and improve service levels and equipment availability.

Service Parts Pricing

With the constant threat of non-authorized parts, it is tough to maintain a competitive edge. Finding the optimal price point for every service part in your portfolio has never been more critical to your profit margins and revenues.

CAD-IT’s service parts pricing module is specifically designed for the unique complexities of pricing service parts

Considering a service parts management solution? Here are the top 5 questions to ask your service stakeholders.

Redefine your service business model with us today!

Key Benefits

  • Up to 30% percent increased part availability
  • Up to 40% percent inventory reduction
  • Up to 10% percent increase in asset up-time / availability
  • Increased planner productivity
  • Lower total cost of service including repair, ordering, and expediting costs
  • Improved customer satisfaction
  • Increased profitability and revenue

Comprehensive Capabilities

Our SPM solution can can house complete product configurations, model probabilistic maintenance bills of material (BOMs), and direct the rebalancing of materials across global networks to achieve the highest availability.

All these are hosted on a single system ensuring that proposal development, contract negotiations, initial provisioning, forecasting, strategic planning and day-to-day tactical planning all have common data structures and modeling assumptions.

SPM enables your service organisation to optimise inventory globally, minimise excess or shortage conditions, analyze service supply chain performance, achieve service targets and manage network-wide considerations and constraints.

Functionalities

Advanced Parts Forecasting

  • Accurate forecasting using statistical algorithms, installed-base data, causal factors and maintenance requirements
  • Field-tested and successful methodologies to address highly sporadic, intermittent and low volume demands
  • Automated best-fit process, designed for service parts, to choose the appropriate method to minimize forecast error
  • Advanced multi-causal forecasting ability to incorporate multiple causal factors e.g. operating hours, power cycles, adaptive failure rate/MTBF estimation and use of time phased failure rates
  • Includes maintenance event-based forecasting and life-limited part forecasting

Inventory Planning and Optimization

  • Multi Indenture Multi Echelon (MIME) inventory optimization determines the lowest cost solution to achieve desired service levels with advanced algorithms
  • Accurate stochastic model predicts service accurately based on multi-level repair and procurement and reverse supply chain flows with Return Rate, No Fault Found Rate, Repair Rate and associated lead times and variances
  • Differentiated service levels by contract, customer, equipment, location with combination of metrics such fill rate, equipment availability and customer wait time
  • Optimize to inventory investment and new buy targets
  • Minimize new buys by optimal burn down of excess inventory and make best use of existing stock
  • Rotable Pool Optimization with flexible global and regional pools and pool based constraints and service targets

Robust Lifecycle Analysis

  • Manage transitions through the product lifecycle, including new product introduction, end-of-life, and product configuration changes
  • Initial Provisioning (IP) recommends spare parts to be sold for the customer to support a new asset or set of assets
  • Last Time Buy (LTB) leverages demand of parts that have already gone through end of life by identifying common characteristics among those parts then grouping through clustering techniques

Innovative Scenario Modeling

  • Flexibility to adjust many decision parameters to analyze their impact on inventory investment and service levels by using what-if scenario planning
  • Enables strategic decision making and analysis for contract pricing, reliability/cost trade-offs, and determination of long-term expenditures for procurement and repair
  • Rich exception based workflow and views for reviewing, comparing, analyzing, modifying results and performing what-if analyses

Advanced Order Planning

  • Recommends the most effective way to repair, replenish, rebalance and buy materials throughout the supply chain
  • Optimal Time Phased Order Planning, minimizing procurement and avoiding backorders, recommend best dates for repair and procurement orders
  • Incorporate real business constraints such as vendor and company calendars, order/pack size limits
  • Model real life part chains to maximize use of existing material such as replace, alternate, and substitute parts with one way or two way interchangeability
  • Comprehensive and configurable fair share and inventory re-balancing rules and prioritization to support real business scenarios
  • Interactive planning using an intuitive planner dashboard to do what-if analyses and modify plans
  • Intelligent identification of expedite and deferral candidates to reduce shortages and excess
X