Demand-Driven Supply Chain Planning for Aftermarket Parts

Achieving high service levels (fill rates) in aftermarket parts businesses is both important and challenging. Important because aftermarket sales are very important to corporate profits at most businesses. Challenging because most inventory planning systems are not well suited for high inventory mix, many slow movers, and complex multi-tier distribution environments. So Customer Service groups often cannot generate optimized service levels.

Our solutions are ideally suited for this environment. Our multi-dimensional demand models have an exceptional ability to model the intermittent demand of slow moving inventory. They provide the ability to deliver stable, reliable and very high service levels. Our aftermarket parts customers routinely obtain service levels in the high 90s.

Our solution starts with best-of-breed forecasting. It features powerful planning models that incorporate internal and external elements such as: seasonal demand profiles, new product forecasting, product changeover, and returns and substitutions. Demand collaboration brings together demand and forecast data from multiple sources in a web-based consensus platform. Inventory optimization and replenishment delivers high customer service levels, even across complex multi-echelon networks. It also addresses Vendor Managed Inventory (VMI), Continuous Replenishment Planning (CRP), lot size optimization and fair allocation in multi-level inventory.

For a complete description of our aftermarket parts solution and our customer experience, please contact the ToolsGroup office nearest you.