2005 Supply & Demand Chain 100 Case Study SARCOM / System Design Advantage
Profiles in Supply Chain Enablement: Inventory asset management helps assure the right part is in the right place at the right time
Profiles in Supply Chain Enablement: Inventory asset management helps assure the right part is in the right place at the right time
Company
Company Size
Company Sector
Area(s) of Enablement
Enabler
Case Study:
The Challenges
Company
Company Size
Company Sector
Area(s) of Enablement
Enabler
Case Study:
The Challenges
- Reduce service parts inventory.
- Increase service parts availability in multiple remote locations.
- Remove the need for customer-owned parts and service company-owned parts.
- Take away the risk of service parts obsolescence.
- Inventory asset management being administered by a parts service company.
- Combining a parts pooling business model with an international distribution-logistics service company allows collaboration of the service parts industry along with the logistics service industry.
- The technology available today provides the platform for communication via electronic data interchange (EDI) ordering, 24x7 customer support and "ExtraNet" service parts ordering.
- Immediate, no-cost entry on maintenance contracts and full parts deployment with a positive ROI projected in the first month.
- Changing fixed inventory cost model to a variable per use parts cost model allows contracts to return positive ROI on day one of new business.
- A 10 percent to 80 percent inventory cost savings over the life of the contract.
- Additional remote inventory handling and inventory carrying costs savings of 22 percent compared to market logistics providers.
For more stories of successful supply chain implementations, read the "2005 Supply & Demand Chain Executive 100" article in the June/July 2005 issue of the magazine. Also watch the Today's Headlines section of SDCExec.com every Tuesday and Thursday for more in depth best practices drawn from this year's Supply & Demand Chain Executive 100.
