Spare Parts

Global operations and supply chain play a crucial role in the success of your company’s aftermarket set up. It is more important than ever to review your operations and supply chain from an end-to-end perspective, to ensure that you are meeting the needs of your customers and staying ahead of the competition.

Here are six key trends that you should be aware of in the aftermarket and spare parts industry:

1. Differentiated Service Levels 

Customers want to have the highest level of availability and want options when it comes to service lead-times and delivery methods. By offering different service levels, you can cater to a wider range of customer needs and preferences and tie your offering to the needs of customer, product and channel segments. Key is not to underserve or overserve the customer but align the service requirements to the service offering in terms of affordability. This requires close co-operation with your commercial colleagues and supply chain and transport management.

2. Technology for Monitoring the Installed Base

Knowing what your customers are using and when they need potential replacement parts is essential to providing the right level of service. With the right technology, you can monitor your installed base and plan your inventory, your technicians and preventative maintenance accordingly.

3. Multi-Echelon Distribution Network

In a global aftermarket service context, it's important to have the capability of a multi-echelon distribution network that can respond quickly to changing customer demands and route spare parts through various fulfillment centers whether this is drop shipping from OEM plant, through Central Distribution, Regional/National or Forward Stock Locations.

4. Supply Chain Visibility

Given the global nature and complexity of the aftermarket business, supply chain visibility is a need in order to make informed decisions about inventory deployment and avoid costly delays and disruptions.

5. Streamlining Operations

As overall landed costs are on the rise, it's important to streamline your operations to maintain profitability. This might mean optimizing your logistics network, selecting the right level of carrier base, improving your inventory management, or automating your processes.

6. Footprint Strategies

Your distribution footprint can be a key lever for success in the aftermarket and spare parts industry. By strategically locating your distribution centers and warehouses, you can reduce transportation costs, improve service levels, and increase customer satisfaction.

It's time to take a fresh look at your global supply chain, distribution and transport operations and supply chain. By reviewing these six key trends and implementing best practices, you can stay ahead of the competition and meet the needs of your customers. With the right strategies in place, you can optimize your operations, improve your profitability, and achieve long-term success.

portr-carlo peters-32658
Carlo Peters
Principal Consultant