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Conference Presentation

Optimize and Outcome Services: The Increasing Importance of Spare Parts, Logistics, and Depot Repair in a B4B World

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The management of spare parts is no longer an afterthought in the technology industry. Spare parts and logistics costs can be upwards of 10% of service revenue. From a growth perspective, an effective spare parts supply chain will enable achievement of performance-based contracts and outcome-based revenue opportunities. In addition, exceptional spare parts performance has been used as a point of differentiation in premium maintenance and support offers.

During this Power Hour we will share the findings of our 2014 Spare Parts Logistics and Supply Chain Multi-Member Study and the increased importance of "spares" in a B4B world. The scope of the study included inventory planning, order fulfillment and delivery, reverse logistics and depot repair. We will present a number of advanced logistics concepts identified in the study that have been implemented in response to emerging trends in the industry:

  • Increasing demands on spares availability – increased first pass fill rates.
  • Pressures on reducing the delivery lead time – same day and next business day deliveries.
  • Reverse logistics and depot repair as a strategic enabler to reduce costs.


Presented By:

Vele Galovski

Vice President, Research and Advisory, Field Services, TSIA

Publish Date: October 20, 2014

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