Achieving high service level (fill rate) for spare parts and in aftermarket is both important and challenging. Important because spare part sales are very important to corporate profits at most businesses, challenging because most inventory planning system cannot handle neither slow movers nor complex multi-echelon structures in a good way. Optimal levels of service can therefore not be achieved.
Optilon’s solutions are ideally suited for these complex environments. Its multi-dimensional demand models have an exceptional ability to model the intermittent demands (slow movers) and make it possible to deliver stable, reliable and very high service levels. Our customers in the aftermarket routinely obtain service levels in the high 90’s.
The technology that we use features powerful demand models dealing with internal and external factors such as: seasonal demand profiles, new product forecasting, product changeover, and returns and substitutions. Its advanced algorithm for inventory optimization brings high customer service, even for complex multi-echelon networks. The technology is designed to quickly and effectively manage large volumes of data and hundreds of thousands of SKU-Location combinations through automation. A unique replenishment logic minimized the so-called “bull-whip effect” (Forrester) very effectively. Vendor Managed Inventory (VMI), continuous replenishment planning (CRP), lot size optimization and so-called staging (optimized storage at the right level in the supply chain) are also handled.
To learn more, take a look at our offer in Service Optimization.