Summary<\/strong><\/p>\n1.Inventory Management is Risk Management<\/u>.<\/p>\n
2.Can\u2019t manage risk well or at scale with subjective planning<\/u> \u2013 Need to know service vs. cost.<\/p>\n
3.It\u2019s not supply & demand variability <\/u>that are the problem \u2013 it\u2019s how you handle it.<\/p>\n
4.Spare parts have intermittent <\/u>demand<\/u> so traditional methods don\u2019t work.<\/p>\n
5.Rule of thumb <\/u>approaches don\u2019t account demand variability and misallocate stock.<\/p>\n
6.Use Service Level Driven Planning <\/u>\u00a0(service vs. cost tradeoffs) to drive stock decisions.<\/p>\n
7.Probabilistic<\/u> approaches such as bootstrapping<\/u> yield accurate estimates of reorder points.<\/p>\n
8.Classify parts <\/u>and assign service level targets by class.<\/p>\n
9.Recalibrate often<\/u> \u2013 thousands of parts have old, stale reorder points.<\/p>\n
10.Repairable parts <\/u>require special treatment.<\/p>\n
<\/p>\n
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Spare Parts Planning Software solutions<\/strong><\/p>\nSmart IP&O\u2019s service parts forecasting software uses a unique empirical\u00a0probabilistic forecasting<\/strong>\u00a0approach<\/a>\u00a0that is engineered for intermittent demand. For consumable spare parts, our patented and APICS award winning method rapidly generates tens of thousands of demand scenarios without relying on the assumptions about the nature of demand distributions implicit in traditional forecasting methods. The result is highly accurate estimates of safety stock, reorder points, and service levels, which leads to higher service levels and lower inventory costs. For repairable spare parts, Smart\u2019s\u00a0Repair and Return Module<\/strong>\u00a0accurately simulates the processes of part breakdown and repair. It predicts downtime, service levels, and inventory costs associated with the current rotating spare parts pool. Planners will know how many spares to stock to achieve short- and long-term service level requirements and, in operational settings, whether to wait for repairs to be completed and returned to service or to purchase additional service spares from suppliers, avoiding unnecessary buying and equipment downtime.<\/p>\nContact us to learn more how this functionality has helped our customers in the MRO, Field Service, Utility, Mining, and Public Transportation sectors to optimize their inventory. You can also download the Whitepaper here.<\/strong><\/p>\n <\/p>\n
<\/p>\n
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White Paper: What you Need to know about Forecasting and Planning Service Parts<\/h3>\n
<\/p>\n
This paper describes Smart Software\u2019s patented methodology for forecasting demand, safety stocks, and reorder points on items such as service parts and components with intermittent demand, and provides several examples of customer success.<\/p>\n
<\/p>\n\n
![\"Bottom](\"https:\/\/smartcorp.com\/wp-content\/uploads\/2023\/06\/Bottom-Line-strategies-for-Spare-Parts-Planning-1.jpg\")
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<\/a><\/p>\n![\"Bottom](\"https:\/\/smartcorp.com\/wp-content\/uploads\/2023\/06\/Bottom-Line-strategies-for-Spare-Parts-Planning-Service-Level.jpg\")
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<\/a><\/p>\n![\"Recalibrate](\"https:\/\/smartcorp.com\/wp-content\/uploads\/2023\/06\/Funnel-1.jpg\")
<\/a><\/p>\n![\"Do](\"https:\/\/smartcorp.com\/wp-content\/uploads\/2023\/06\/Do-Plan-Rotables-Repair-Parts-Differently-.jpg\")
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