Oracle's R12.1 APS suite has a new product in offering "Spare/Service Parts Planning", which is focused to answer the need of an advanced, automated, exception based planning application of Service industry. Sectors which can highly benefit from Service Parts Planning are Industrial Manufacturing, Aerospace, High Tech & OEMs. As volume of spares in these sectors is significantly large and forecasting amount of spares to be available at various stocking location in a Service industry supply chain, itself is a painful job. Besides forecasting, safety stocks calculation, and replenishment planning are two more complicated processes in this industry and the complexity of it can be easily imagined considering number of spare parts involved in Services.
Research shows that After-market sales forms more profitable part of business, as compared to profit earned by sales of original equipments. Also the amount of money involved in Service sector of business is huge and thus becomes a potential market to target for improving the current form of supply chain planning system.
Service Supply Chains are more complex as flow of material is not one way,. Spares flow from Suppliers to Warehouses to Service Technicians, while defective parts material flow backward for repair or replacements. In a standard Service supply chain, the complexity if pretty high because of various locations and spare parts volume. This needs an application which can handle forward as well as backward material flow, so that smooth material flow can be achieved.
For company's who have Service as a key contributor and part of their business and it's growing at a fast pace, SPP can be a best of breed solution for all of theirs Service Parts Planning needs.
What SPP has to offer:
1. Forecast accurately with build in Demantra's Forecasting engine
2. Replenish spares based on Single plan model
3. Distribute spares using SPP's plan
4. One single UI to carry out all 3 above processes for improved productivity
5. Forecasting based on Shipments, Spares Usage, and Returns
6. Plan based on Service parts failure rates calculations
7. Integrated with various APS modules like Demantra DM, CP, IO, and ASCP.
Benefits:
- Reduced inventory carrying cost for Spares
- Increased Spares demand fill rates
- Improved Customer Service Levels
For more information on product offering and capabilities, review documentation available in Oracle Metalink.
2 comments:
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I really like your post. This post give a brief description about SPP i.e Service Parts Planning. I wasn't aware of it before reading this blog but I find it very useful. I think one can apply it many context.Thanks for the post.
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