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Spare Parts Optimizer

The management of service parts can prove to be a nightmare for many companies. Ensuring that the right spare parts and resources are in the right place at the right time is never easy – there’s a whole host of issues that can arise. Manufacturers need to try and strike a balance between ensuring the maintenance of operations whilst also minimizing inventory.

Get the demand or usage statistics wrong and the parts may end up as excess inventory, never being used. The parts might not be stored properly, leading to defects, incurring the cost of maintaining the inventory only to not be usable at the moment of truth. Even if the parts are supplier managed, there’s always the risk that they may not be available when needed, leading to production stoppages and incurring significant costs. Managing this is not easy, and SAP does little to help. However, there is a solution.

Every Angle have come together with Gordian Logistic Experts in order to provide a new offering - Spare Parts Optimization. The dual combination of the knowledge and experience of Gordian Logistic Experts in the area of spare parts management, combined with the actionable insights into SAP provided by Every Angle, ensures this service is able to rapidly identify significant improvements in your management of spare parts.

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Objectives

The main objectives for the Spare Parts Optimizer is as follows:

  • To highlight opportunities to improve the level of spare parts inventory
  • To provide insights into the performance of spare parts provisioning
  • To Identify the value of potential improvements

Approach

Phase 1: Kick-off, data gathering and interviews

The Spare Parts Optimizer starts with an initial meeting explaining the objectives of the engagement and its approach. The key stakeholders will be interviewed to understand the current process and spare parts management strategy. Based on the results of these interviews, Every Angle software will be configured to analyze the current level of performance and identify any process gaps and improvement opportunities.

The following analysis will be undertaken:

  • A classification of the spare parts assortment based on costs and demand frequency
  • Assessment of the inventory value versus service levels and costs
  • Current process performance including actual actionable process issues

Phase 2: Calculate potential for improvement

After the interviews and data gathering, the consultants will analyze the results, determine your current performance levels and benchmark the Spare Parts Management process. Areas of improvement will be identified and potential value will be calculated.

At the end of this phase, a management presentation of the results will be presented and discussed. The business case for improvement and implementation plan will also will be proposed.

The Spare Parts Optimisation project will be completed in only a few days.

  • Report on the current spare parts assortment performance
  • Reports highlighting a series of directly actionable process issues
  • Objective and expert based analysis of the maturity level of your spare parts management
  • Financially validated improvement potential

Customer Case: Gasunie NV

Gasunie, a major European gas infrastructure company, completed the Spare Part Optimizer program to great success. After only a handful of interviews to understand their business processes, the potential savings in both the inventory value and operational costs were shown.

Besides the indicated savings, a couple of practical reports were created that provided direct insights into available stock in different storage locations and projects. This saved each supply chain planner immediately 0.5 – 1.0 day per week. Best of all, the level of spare parts inventory was significantly reduced, whilst also achieving a higher level of service.


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"I have been involved in a lot of projects. This is one of the first that gave me direct, practical savings in a very short time."
Michel Vergeer, Supply Chain Planner at Gasunie


"I was impressed by the potential savings in stock value that we could achieve without scrapping. They showed a possible direct reduction in out of pocket cost, even with increased service levels."
Lilian Prins, Manager Supply at Gasunie

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