The Real Service Parts Question

TheRealServicePartsQuestion.jpg
The Real Service Parts Question

We learned the following things from a white paper by Ciber. Reducing the Excess: Using Vendor Managed Inventory to ImproveProductivity Without Sacrificing Customer Service.

“Reduce Capital Investment in Inventory Our parts distributor estimated it had more than $180 million worth of inactive inventory (inventory with zero demand at a customer location in more than 9 months) across its 3000 U.S. locations. In fact, the distributor discovered three things: Fewer than 40% of service part numbers experience 52 or more orders per year (i.e., one per week) Nearly 25% of service part numbers are ordered three times or less per year (i.e., less than once per quarter) Nearly 60% of service part numbers sell only once per year” http://www.ciber.com/downloads/whitepapers/CIBER_ManagedInventory.pdf?

We learned the following things from a whitepaper by Ciber. Reducing the Excess: Using Vendor Managed Inventory to Improve Productivity Without Sacrificing Customer Service.

“Our parts distributor estimated it had more than $18 million worth of inactive inventory (inventory with zero demand at a customer location in more than 9 months) across its 3000 US locations. In fact, the distributor discovered three things. Fewer than 40% of service part numbers experience 52 or more orders per year (i.e.,one per week)Nearly 25% of service part numbers are ordered,three times or less per year (i.e., less than once per quarter) Nearly 60% of service part numbers sell only once per year”

References

http://www.ciber.com/downloads/whitepapers/CIBER_ManagedInventory.pdf?CFID=15663357&CFTOKEN=25661373


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1 thought on “The Real Service Parts Question

  1. Pingback: The Real Service Parts Question « SPPLAN – Service Parts Planning

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