Report Touts Benefits of Best-of-breed Service Parts Management Solutions

Y2G Associates highlights companies integrating SPM solution with existing ERP systems to achieve "significant results"

Y2G Associates highlights companies integrating SPM solution with existing ERP systems to achieve "significant results"

Atlanta — September 23, 2005 — Companies integrating best-of-breed service parts management solutions with their existing enterprise resource planning (ERP) solutions have been able to achieve significant operating results with a rapid return on investment (ROI), according to a recent report from software research firm Y2G Associates.

The report is being touted by Servigistics, a service parts management solution provider. In the report, entitled "Best-of-Breed and ERP — From Contention to Consensus," Y2G contends that companies integrating best-of-breed (BoB) solutions, such as Servigistics, with existing ERP applications can see significant benefits.

"BoB [service parts management] applications augment investments in back-end ERP and transactional systems by delivering the capabilities required to drive results and transform service operations," Y2G said in the report.

Citing numerous examples from successful Servigistics implementations, Y2G also wrote, "These [BoB] applications are easier to deploy, deliver more value and, thanks to technology, offer the same level of integration as the ERP applications themselves."

Integrating SPM and ERP

Additionally, the report includes numerous examples of leading companies integrating the Servigistics Service Parts Management (SPM) solution with their existing ERP solution and achieving significant operating results. The report stated: "Success stories abound with the BoB SPM approach. ... Subaru first implemented the Servigistics SPM solution at the distribution center level and cut inventory in half. They extended the same SPM instance to help the dealers, which allowed them to transform their business model, increase dealer turns to more than 11 times and increase parts revenue by 30 percent. Others from related industries, such as Volvo, MTD and Huyster and Yale, are now implementing Servigistics with similar strategies."

"Leading automotive and high-technology manufacturers that have integrated the Servigistics Service Parts Management solution with their existing ERP systems have achieved significant results within their service operations," said David Cahn, CEO of Y2G Associates. "These manufacturers have dramatically improved service levels while reducing inventory, effectively positioning their service parts operations as a key profit center for the future."

"Many of our clients have integrated the Servigistics solution with their existing ERP solutions and achieved significant results and a rapid ROI," said Eric Hinkle, Servigistics' CEO. "The proven financial and operational improvements from integrating Servigistics with existing ERP solutions are unmatched when compared to implementing an ERP solution alone. Anyone in the process of evaluating best-of-breed versus ERP solutions for their service parts network should read this report."

A complimentary copy of the Y2G Associates Report, "Best-of-Breed and ERP — From Contention to Consensus," is available from Servigistics at

Additional Articles of Interest

— For more information on solutions for the service and support chain, see the articles "In the Field and All Grown Up," the Net Best Thing column in the June/July 2002 issue of iSource Business (now Supply & Demand Chain Executive), and "Time to Prove It," the Net Best Thing column in the April/May 2003 issue of the magazine.

— For best practices in service parts management, see the article "Three Keys to Successful Service Parts Management."

— Increased opportunities for customer interaction create new operational challenges for Sales, Marketing and Service  the Demand Chain. Organizations must look beyond technology to the true foundation of creating and managing demand. For more information, read the exclusive "Trends in the Demand Chain."