Aftermarket supply chains characteristically include multi-tier distribution networks with large volumes of part numbers and usually intermittent demand.  For companies with a significant aftermarket business, it is important to maintain high levels of service across these different service channels.  It is also challenging, because traditional supply chain planning solutions don’t address the “long tail” problem very well.

ToolsGroup solves the service parts planning problem with an exceptional ability to forecast intermittent demand and optimize multi-echelon inventory. Our customers routinely achieve service levels in the mid to high 90s with 20% less inventory. These include manufacturers and distributors of aftermarket parts for automotive, industrial equipment, electrical/electronic components, HVAC and other durable goods.

ToolsGroup’s solutions feature extremely accurate forecasting and service level optimization. Rather than working only with aggregated time series, our demand analytics analyze demand history down to specific channel and individual order-line. This level of detail expertly handles fragmented “long tail” demand, life cycle planning (new products introductions, substitutions and end-of-life), and extreme seasonal demand behaviors. And it does so automatically, using readily available data.

We also address Vendor Managed Inventory (VMI), complex part supersession and replacement rules, fair allocation across multi-level inventory, repair and reverse logistics, and diverse vendor sources with constrained supply.