ToolsGroup Helps Manufacturers Build Winning Aftermarket Parts Supply Chains
Aston Martin, Harley-Davidson, Mitsubishi Electric, Volkswagen Audi España SA and Whirlpool highlight companies optimizing spare parts operations
Boston – December 7, 2016 – Today ToolsGroup announces that Aston Martin, Harley Davidson, Mitsubishi Electric, Volkswagen Audi España S.A and Whirlpool are among the global manufacturers that have purchased, expanded or gone live with ToolsGroup’s SO99+ planning platform for their aftermarket parts supply chains this year. Despite highly complex supply chains, these companies are building more profitable businesses by raising service levels, avoiding stock-outs and optimising inventory levels.
The extreme complexity of aftermarket supply chains (often as many as 20x SKU-Locations as OEM manufacturing), demand variability, and environmental regulations are among the many reasons why legacy ERP systems fall short in this sector. ToolsGroup solves the service parts planning problem with an exceptional ability to forecast intermittent demand and optimize multi-echelon inventory.
Since countless studies link after-sales service to brand loyalty, manufacturers that overcome these complexities can grow market share and profits. For example:
- Aston Martin reduced inventory value of its safety stock on high-demand items by 18 percent while immediately improving FTA service levels to 97.1%, and towards significant further improvements in both areas.
- Harley-Davidson’s initial 2016 EMEA implementation optimized inventory against service levels up to 99.6% across all spare parts and accessories portfolios. Achieving the lowest backorder levels in five years helped grow monthly revenue by 5% over the previous year.
- Lennox Industries improved service levels by 16% while increasing inventory turns by 25%, supporting high sales and market share growth. All the while managing an ambitious North American distribution network enlargement and transitioning to a hub-and-spoke model with 55 shipping and 161 selling locations.
In addition, Whirlpool Europe extended its SO99+ implementation globally for demand planning, inventory optimization and replenishment planning and Mitsubishi Electric rolled out Heating, Ventilation and Air Conditioning (HVAC) spare parts management to two additional countries. Other new or live aftermarket parts customers included Global Garden Products, Hoover (Italy), MARESA, NIBE and Volkswagen Audi España S.A.
According to Jeff Bodenstab, VP Marketing, ToolsGroup, “Aftermarket parts is a big net margin producer for many manufacturers, and yet service levels and inventory in these operations are often woefully sub-optimized. Our customers stop leaving money on the table.”