Service Parts Planning Capability Development
Service parts planning in an aftermarket business is not the same as planning the demand for parts in a manufacturing environment. Aftermarket demand is much more volatile and unpredictable. Without the right processes and systems and a variety of different forecasting algorithms available, the result will be poor parts availability, too much inventory, or both.
Similarly, service parts inventory planning for an aftermarket business is not the same as planning buffer stocks, Work In Process (WIP) stocks or finished goods stocks in a manufacturing environment. Manufacturers often base their inventory policy on a number of weeks of supply whereas aftermarket parts inventory should be driven by required customer service levels. Using weeks of supply in a service parts environment will result in too much fast moving parts inventory and not enough slow moving parts inventory with too much stock and poor availability overall.
Our consultants are experienced in diagnosing the root causes of parts planning and inventory problems in aftermarket businesses. We are hybrid business/system consultants familiar with modern service parts planning systems and processes, able to fix problems and develop or improve your parts planning capability. You can check out our other services here.
