Why the automotive aftermarket spare parts supply chain is such a complex problem

Network Business

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Image Credit: Dave Parker
Image Credit: Dave Parker

Being successful in delivering superior results in the aftermarket parts business is a difficult proposition. Aftermarket parts inventories must be made available at the right time in the right quantities in the right mix at the right location within a supply network in order to provide targeted levels of after-sales services at targeted cost levels while being able to guarantee the achievement of customer service metrics.

Several factors render demand and inventory management for aftermarket parts a very complex problem. Among them are the high number of parts under management, the presence of intermittent or lumpy demand patterns, the high responsiveness required due to customer downtime costs, and the risk of stock obsolescence. Yet software solutions for aftermarket parts demand, order, inventory, and logistics management have not kept pace with software advancements in other areas of the supply network.

See below for a real example of how one of the world’s largest automotive leveraged an innovative cloud platform and a trusted 3PL partner to transform their spares business.

Image Credit: One Network Enterprises
Image Credit: One Network Enterprises

Want to learn more? I suggest you download the automotive aftermarket spares solution sheet.

 

Bruce Jacquemard
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