Spare Parts Management

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An introductionary presentation on spare pats management and our solutions

Spare Parts Management

  1. 1. Spare Parts - Profits by Management
  2. 2. Our Offering Spare parts planning and inventory management solution
  3. 3. About Us <ul><li>MINET – Supply chain and procurement solutions company </li></ul><ul><li>BAXTER – Offers advanced spare parts planning solutions </li></ul>
  4. 4. Customers
  5. 5. Challenges <ul><li>High inventory costs </li></ul><ul><li>Machine down time </li></ul><ul><li>Loss of income </li></ul><ul><li>Dead inventory </li></ul>
  6. 6. The Path to Profit <ul><li>Increase revenue through improved service levels: </li></ul><ul><ul><li>Fewer stock-outs </li></ul></ul><ul><ul><li>Faster response times </li></ul></ul><ul><li>Trim costs through optimized inventory levels: </li></ul><ul><ul><li>Intelligently plan inventory levels through geographic analysis and “true cost” optimizing. </li></ul></ul>Revenues Costs Profit
  7. 7. Optimal Stock Level Calculation Cost per Part Cost of Stockouts Cost per Stockout Customer Product Location Part Expected Number of Stockouts Review Frequency Lead Times Demand Forecast DOA Rate <ul><li>Min/Max </li></ul><ul><li>Order quantity </li></ul><ul><li>Reorder point </li></ul>
  8. 8. The Process Output Input <ul><li>Lead time </li></ul><ul><li>Inventory and Stock out costs </li></ul><ul><li>Demand history </li></ul><ul><li>BOM </li></ul><ul><li>Contracts </li></ul><ul><li>Demand forecast </li></ul><ul><li>Safety stock </li></ul><ul><li>Order quantity </li></ul><ul><li>Reorder point </li></ul>Optimization Engine
  9. 9. Better Service = Profits <ul><li>Optimize stocking locations based on customer response commitments </li></ul><ul><li>Determine optimal stocking levels for each location based on the “true cost” of stock-outs and inventory </li></ul><ul><li>Re-analyze and replenish based on forecasting and supply sourcing options. </li></ul>
  10. 10. The Users <ul><ul><ul><li>The planning is automated </li></ul></ul></ul><ul><ul><ul><li>The planner monitors the system and deals with exceptions </li></ul></ul></ul><ul><ul><ul><li>Baxter alerts the planner whenever a decision has to be made </li></ul></ul></ul><ul><ul><ul><li>Strategic planning VS. tactical planning </li></ul></ul></ul>
  11. 11. Conclusion: Turn Parts into Profit <ul><li>Inventory levels and customer service are intrinsically linked – focusing on only one harms the other. </li></ul><ul><li>The cost of poor service exceeds the cost of high inventory. </li></ul><ul><li>Finding optimal stocking levels requires understanding the true cost of inventory, for each part and each geographic location. </li></ul><ul><li>You can reduce costs by over 30% while providing a higher level of customer satisfaction. </li></ul>
  12. 12. <ul><li>DEMO </li></ul>
  13. 13. Thanks Contact information: Phone: 03 7516858 Fax: 03 7516791 Address: Jabutinsky 33, Ramat Gun 52511 E-mail: [email_address] Web site: www.minet.co.il

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