New industry standard for Service Parts Management

Service Parts Management involves the coordination of activities, such as demand forecasting, network supply planning, order management, and parts logistics. However, this new industry standards goes way beyond the basic operational processes, as it covers best practices such as management of the product lifecycle, from product development to end of service.

For manufacturers, inadequate Service Parts Management can result in unacceptable delays in solving service issues – or no solutions at all. Service level agreements are missed, penalties are issued, customers become dissatisfied, and the company may lose customers. ‘After-markets’ are now reaching four to five times the size of original equipment sales in many industries, making it a manufacturer’s prime driver of profitable growth.

Our 2016 research has found that most discreet goods manufacturers felt that they don’t know how to manage service parts effectively, with very few organizations reporting that they are more than marginally satisfied with their organizations’ Service Parts Management approach, and only 20% reporting that they are “very” or “extremely satisfied.”

In search of excellence, the collaborating companies recognized that sharing best practices and experiences in a cross industry setting with peers is key. After more than a year with closed discussion sessions and open roundtables the first version of the best practice reference framework consisting of management practices, processes and performance metrics has been completed and has now been launched.

The new SCP Standard is now available to the larger audience. Every year an update will be published with additional content and more best practices. 

Companies that contributed to the creation of the SCP Parts Management Standard include: Assa-Abloy, Aston Business School – Centre for Advanced Services, Canon Europe, CNH Industrial, Daimler, Diebold-Nixdorf, GEA, Konecranes, Krauss Maffei Group, PTC, Roche Diagnostics, ThyssenKrupp Elevators and UPS.

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