Service Parts Management (SPM)

Motives and Requirements

Service Parts Management, Logistics, Network

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The need for a Service Parts Management (SPM) solution is generally triggered by the following factors:

  • Service is an attractive and reliable source of revenue

  • Service parts may form up to 30% of the total sales, and at least 45% of profit

  • An increase in the level of service also means an increase in customer retention and brand loyalty

  • Increase the level of service and reduce logistics costs can become a critical success factor

  • A considerable number of parts, perhaps 300.000+ often needs to be shipped out the same day

  • There is a need to find appropriate alternatives in the business and production processes (make-or-buy, reconditioning, product substitution, etc.)

         
 

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