Service Spares Management contributes to the bottom line
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Posted On :
Mar-22-2011
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Article Word Count :
457
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A Service Spares Management company offers a number of solutions to high-tech marketers. Solutions include Lean Supply Chain Planning, Inventory Optimization, Product Reintroduction, Risk Management Techniques, Vendor-Managed Reverse Supply Chain Inventory, and Kitting Solutions.
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A Service Spares Management company offers a number of solutions to high-tech marketers. Solutions include Lean Supply Chain Planning, Inventory Optimization, Product Reintroduction, Risk Management Techniques, Vendor-Managed Reverse Supply Chain Inventory, and Kitting Solutions.
Lean Supply Chain Planning
Lean supply chain planning eliminates nonessential tasks in inventory management. If a task does not in any way create value for the end customer, it is queued for elimination. This results in a leaner and more profitable inventory. Lean supply chain planning reduces the pressure to carry more products than will be required in a real-time demand scenario . . . and tackles risks associated with an obsolete inventory or last-minute purchasing.
Inventory Optimization
Inventory optimization is about the right parts at the right time at the right place. Many inventory managers prefer a slightly oversupplied inventory. However, this can result in a bloated inventory—with more wrong parts than the right ones—that can eat into a company's revenues.
Inventory optimization also ensures companies do not end up paying too much for components and recover substantial revenue from the liquidation of excess inventory.
Product Reintroduction
Anywhere from 70% to 85% of products in a reverse logistics chain fall into the No Trouble Found (NTF) category, i.e., products that are defects-free.
NTF materials are tested and screened to strict manufacturer specifications and then returned into the service parts supply chain for reintroduction into the market.
Product reintroduction drastically reduces inventory acquisition and scrap disposition costs by eliminating the need to purchase brand-new components.
Risk Management Techniques
Too much inventory can lead to overstocking issues. Too little inventory can not only impact product servicing but it can also cause loss of revenue because of the deep discounts offered on liquidated inventory.
Risk management techniques identify, address and manage a company's overall inventory risk.
Techniques introduced may include lean supply chain planning (discussed above), just-in-time delivery practices, and daily market intelligence.
Vendor-Managed Reverse Supply Chain Inventory
The advantages of a vendor-managed reverse supply chain inventory are many, including reduced overall risk and obligation . . . and reduced exposure to fluctuating inventory levels, market demands, and management costs. A Service Spares Management company can provide a wide range of services, including centralized forecasting, service spares management, service parts inventory management, inventory scaling, and quality controls.
Kitting Solutions
A good Service Spares Management company can ensure a dynamic and forecast-driven kitting operation . . . reduced costs . . . smaller purchases . . . and optimized inventory management. Kitting solutions include quality control, kit creation based on production forecasts, development of service repair kits for field support, complete serialized tracking management, and waste reduction and reuse of inspected components for service support.
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Article Source :
http://www.articleseen.com/Article_Service Spares Management contributes to the bottom line_56726.aspx
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Author Resource :
Kristina Paul, writes content for Reverse Logistics, Service Spares Management and Product Returns Management. For more insight and further information please visit:- http://www.resolvebyarrow.com/
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Keywords :
Reverse Logistics, Service Spares Management, Product Returns Management,
Category :
Business
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Business
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