New industry standard for Service Parts Management

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 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 Best Practices are now available to the larger audience in the Service Transformation Centre. Companies that contributed to the creation of the SCP Parts Management Standard include: Aston Business School – Centre for Advanced Services, Diebold-Nixdorf, GEA, PTC, Roche Diagnostics, ThyssenKrupp Elevators and UPS.

Request your demo access to the Service Transformation Centre here.