I Think IKON, I Think IKON

Office equipment provider taps Servigistics to optimize service parts

Marietta, GA  December 5, 2001  IKON Office Solutions has tapped supply chain software provider Servigistics' service parts planning solution to better manage its parts inventory and to improve customer service.

IKON, which offers a variety of office equipment, plans to integrate Servigistics' PartsPlan with the customer relationship management (CRM) module of Oracle's E-Business Suite, which IKON is in the process of implementing. Once implemented, PartsPlan will support IKON's service parts planning throughout North America.

IKON expects to benefit from cost savings over time due to reduced inventory levels.

"PartsPlan will provide IKON with the flexible capabilities our field service and supply chain operations require to plan and forecast inventories without overstocking service parts, while improving customer service," said Stephen LaHood, vice president of supply chain at IKON.

"Using PartsPlan in conjunction with the Oracle system will help improve our ability to plan for the right part, at the right time and place to meet our customers' needs," LaHood continued. He added that Servigistics was able to incorporate IKON-developed planning and forecasting techniques that are specific to its business.

Servigistics says that PartsPlan can manage the procurement, replenishment, return and repair components of service parts planning. The Web-based software enables field service personnel to perform demand forecasting, manage stock levels, identify excess inventory or critical shortages and conduct "what-if" scenarios to test strategies and plans, according to the solution provider.

"Unused service parts sitting in a warehouse or in the trunk of a field engineer can significantly affect a company's profitability," said Mike Landry, president and CEO of Servigistics. "While most organizations have optimized the equipment and manufacturing components of their supply chains, many have overlooked the costs associated with overstocked inventories of service parts. With PartsPlan, Servigistics enables organizations like IKON to efficiently plan and forecast their inventories while improving customer service."

According to U.S. Bancorp, spare parts represent $700 billion in spending and 8 percent of gross domestic product in the United States alone.

Also this week, Servigistics announced that it would offer PartsPlan via Interliant's INIT ASP Host program. As a partner in the INIT ASP Host program, Servigistics is using a combination of Interliant's INIT Managed Hosting, INIT Security and INIT Services capabilities to supplement day-to-day operations, infrastructure management and customer support.