Copyright © 2014 Kinaxis Inc. All Rights Reserved.
Aftersales & Service Parts
Serving the customer and the supply chain
Aa...
2
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
Prelude - Aspirations of Supply Chain Practitioners
Ensure a response...
3
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
Service Parts Supply Chains are Gaining Importance *
Spare Parts’ Con...
4
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
CUSTOMERS
Customer
Facing DC
Customer
Facing DC
Regional
DC
Global
Su...
5
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
CUSTOMERS
Customer
Facing DC
Customer
Facing DC
Regional
DC
Global
Su...
6
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
… Managed with Site Specific Execution Focused KPIs
Order fill rate: ...
7
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
Trailing behind Core Business in Supply Chain Excellence
ROI
Margin
S...
8
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
• Segmentation of channels / customer and parts for improved cost to
...
9
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
Concurrent Planning Across Functions Consequence Evaluation & Alertin...
Copyright © 2014 Kinaxis Inc. All Rights Reserved.
Thank you
Visit us at www.kinaxis.com
Upcoming SlideShare
Loading in …5
×

Automotive Logistics Europe 2014 Aamer Rehman - Aftersales & Service Parts: Serving the customer and the supply chain”

1,908 views

Published on

Aamer Rehman: service parts supply chains are gaining importance and that a fundamental change is required in supply chain management. OEMs and suppliers need global visibility in order to align and synchronize multi-tiered supply chains for fast responses to demand and supply changes, and to make intelligent tradeoff decisions based on real insights.

In Rehman’s opinion, the automotive sector needs significant improvement in some critical enterprise competencies:

Improving visibility, alignment and synchronization across functions, and more importantly across the supply chain, and with a focus on customer service. This is critical given gradual reduction in vehicle inventory in the channel and working capital reduction pressure across all supply chain stakeholders.
Supply risk management – where companies need to develop core capabilities to detect supply and capacity problems, assess the impact, come up with business tradeoffs and publish the change.
Speed and accuracy of decision making is critical. In this case, automotive companies need to focus on capacity planning and capacity constraint management disciplines and processes in order to remove unnecessary latency and lack of visibility across the value chain.
Collaboration across stakeholders – collaboration is not merely passing data between partners. It is about context and content specific collaboration to understand who is impacted by a change and mutually resolve it inside and outside the enterprise.
Companies need to eliminate information latency between strategic, tactical and execution windows and eliminate the artificial boundaries. For example, a static monthly S&OP reporting cadence is not sufficient. Tying it to weekly and daily execution is critical. A seamless flow through planning time frames is possible only if companies diligently work towards removing the patchwork of applications and Excel. S&OP, capacity planning, constraint management and inventory management processes need to be revisited to establish discipline and alignment in decision making required for globally distributed supply chains.

Published in: Business
  • Be the first to comment

Automotive Logistics Europe 2014 Aamer Rehman - Aftersales & Service Parts: Serving the customer and the supply chain”

  1. 1. Copyright © 2014 Kinaxis Inc. All Rights Reserved. Aftersales & Service Parts Serving the customer and the supply chain Aamer Rehman – Vice President, Industry Strategy & Solutions
  2. 2. 2 Copyright © 2014 Kinaxis Inc. All Rights Reserved. Prelude - Aspirations of Supply Chain Practitioners Ensure a response service parts supply chain to provide the highest level of customer service with minimal inventory investment through proactive insight to market demand, inventory rightsizing, intelligent replenishment, and bi- directional collaboration with partners
  3. 3. 3 Copyright © 2014 Kinaxis Inc. All Rights Reserved. Service Parts Supply Chains are Gaining Importance * Spare Parts’ Contribution to Revenue and Profit Service Is More Profitable than Core Business * Source: Cognizant 20-20 Insights – July 2012
  4. 4. 4 Copyright © 2014 Kinaxis Inc. All Rights Reserved. CUSTOMERS Customer Facing DC Customer Facing DC Regional DC Global Suppliers OEMs Engine / Transmission Supply No of Sites per Region 10 No of Unique Parts 100K % of Global Parts 80% % of Domestic Suppliers 20% Service Parts Supply Chains - Complex & Distributed Domestic Suppliers Global Logistics Centers Dealers National Retailers Local Retailers Fast Movers Medium Movers All Parts Slow Movers Fast Medium Movers Premium Freight, Expedites / Transfers & Misaligned Inventory Organized as Hierarchical or Non-Hierarchical Network Differentiated Needs
  5. 5. 5 Copyright © 2014 Kinaxis Inc. All Rights Reserved. CUSTOMERS Customer Facing DC Customer Facing DC Regional DC Global Suppliers OEMs Engine / Transmission Supply Domestic Suppliers Global Logistics Centers Dealers National Retailers Local Retailers Fast Movers Medium Movers All Parts Slow Movers Fast Medium Movers Organized as Hierarchical or Non-Hierarchical Network Service Parts Supply Chains Lack End to End Alignment Legacy Supply Chain Approach is Inadequate Incomplete understanding of Supply Chain Interdependencies Large amount of data spread across functional silos / applications Slow response to changes due to long and disjointed planning cycles “One Size Fits All” Supply Chain Orientation
  6. 6. 6 Copyright © 2014 Kinaxis Inc. All Rights Reserved. … Managed with Site Specific Execution Focused KPIs Order fill rate: customer demands that are met from stock Stock out rate: customer demands not met due to stock outs Backorder Level: number of orders in queue waiting to be filled On time delivery: number of order fulfilled with agreed upon due date “How do we get to processes capable of sustainable return on investment and Positive EVA in all business conditions?” Focus × 𝑺𝑺𝑺𝑺𝑺 𝑪𝑪𝑪𝑪𝑪𝑪𝑪 𝑬𝑬𝑬𝑬𝑬𝑬𝑬𝑬 𝑷𝑷𝑷𝑷𝑷𝑷 𝑺𝑺𝑺𝑺𝑺𝑹𝑹𝑹 = 𝐄𝐄𝐄𝐄𝐄𝐄𝐄𝐄 𝐕𝐕𝐕𝐕𝐕 𝐀𝐀𝐀𝐀𝐀 𝐄𝐄𝐄 = 𝐏𝐏𝐏𝐏𝐏𝐏 𝐀𝐀𝐀𝐀𝐀 𝐓𝐓𝐓𝐓𝐓 − 𝐂𝐂𝐂𝐂 𝐨𝐨 𝐂𝐂𝐂𝐂𝐂𝐂𝐂 𝐄𝐄𝐄𝐄𝐄𝐄𝐄𝐄
  7. 7. 7 Copyright © 2014 Kinaxis Inc. All Rights Reserved. Trailing behind Core Business in Supply Chain Excellence ROI Margin Sales Revenue Cost Capital Employed Cash AP/AR Inventory Fixed Asset Collaborative SIOP Segmentation Segmentation Demand-Supply Balancing Cost to Serve and Segmentation Cash-to-Cash Cycle Reduction End to End Visibility Segmentation Collaborative SIOP Replenishment Modes 3P, WH Leasing
  8. 8. 8 Copyright © 2014 Kinaxis Inc. All Rights Reserved. • Segmentation of channels / customer and parts for improved cost to serve • Inventory & replenishment policies to sync up with cost to serve Differentiated Service Management • Assess supply delivery risk and its impact on fulfillment capability at the customer orders level and collaborate with supplying partners Supply Risk Evaluation & Collaboration • Orchestration and continuous synchronization of demand, supply, financials and NPI at the regional and global levels • Enable business / operational insights with trading partners Sales, Inventory & Operations Planning • Visibility to Inventory imbalances, transfers and orders • Single view of demand, supply, inventory and financials across the service parts supply chain Visibility & Monitoring • Replenishment plans based on projected inventory levels, consumptions and constraints • Allocation of constrained supply based on business rules / demand priority Intelligent Replenishment Required Supply Chain Competencies for Service Parts • Optimal positioning and stocking across the multi-echelon network • Segmentation along part, usage, margin and lead-time dimensions Inventory & Supply Management
  9. 9. 9 Copyright © 2014 Kinaxis Inc. All Rights Reserved. Concurrent Planning Across Functions Consequence Evaluation & Alerting Plan + Monitor + Respondx x Responsibility-Based CollaborationBusiness Trade-Off Analysis / What-If Why Kinaxis is Relevant for Service Parts Supply Chains?
  10. 10. Copyright © 2014 Kinaxis Inc. All Rights Reserved. Thank you Visit us at www.kinaxis.com

×