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Three Keys to True Inventory Optimization

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There are three capabilities companies must attain in order to optimize their spare parts inventory management practices.

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Three Keys to True Inventory Optimization

  1. 1. THREE KEYS TO TRUE INVENTORY OPTIMIZATION
  2. 2. 2All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT TIME RIGHT PART RIGHT PLACE TRUE INVENTORY OPTIMIZATION TRUE INVENTORY OPTIMIZATION occurs when spare parts are available when and where needed at the right price for the customer and company.
  3. 3. 3All content is Copyright © 2017 PTC, Inc. All rights reserved. 3 Dynamic, global service operations require a complex service parts management approach to ensure the highest level of equipment availability with the least amount of parts-related disruption. 3All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT PART
  4. 4. 4All content is Copyright © 2017 PTC, Inc. All rights reserved. 4 METSO MINERALS OVERVIEW CHALLENGES • Global parts inventory • Service locations function separately • Difficulty meeting SLAs • High inventory costs All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT PART
  5. 5. 5All content is Copyright © 2017 PTC, Inc. All rights reserved. 5 METSO MINERALS OVERVIEW SOLUTIONS • See supply chain as a whole • Service locations function interdependently • Meet customer expectations • Lean out and predict inventory costs All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT PART
  6. 6. 6All content is Copyright © 2017 PTC, Inc. All rights reserved. 6 Results +3.4% on-shelf availability 32M EUR inventory reduction +18% inventory turns All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT PART “We are constantly looking for ways to improve how we connect to our customers and their needs, we’re looking forward to continuing our service transformation.” − Sebastien Bergé, Metso Minerals
  7. 7. 7All content is Copyright © 2017 PTC, Inc. All rights reserved. 7 Accurate service parts forecasting is challenging when considering a mix of fast and slow-moving parts with sporadic demand. 7All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT TIME
  8. 8. 8All content is Copyright © 2017 PTC, Inc. All rights reserved. 8 CHALLENGES • Thousands of parts in inventory • Customers purchasing non-OEM parts due to price sensitivity • Lack of visibility into competitive pricing • Part pricing mostly manual process JLG INDUSTRIES All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT TIME
  9. 9. 9All content is Copyright © 2017 PTC, Inc. All rights reserved. 9 JLG INDUSTRIES SOLUTIONS • Set optimized pricing echelons • Customers seeing greater value in OEM parts • Auditable pricing platform • Interpret data for lifecycle pricing All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT TIME
  10. 10. 10All content is Copyright © 2017 PTC, Inc. All rights reserved. 10 JLG INDUSTRIES BENEFITS • Three-year cumulative value to JLG would be 60% higher than originally projected • Automating the pricing of 80% of spare part stock • 100% ROI in 12 months All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT TIME
  11. 11. 11All content is Copyright © 2017 PTC, Inc. All rights reserved. 11 Dedicated service parts management solutions enable demand forecasting and ongoing optimization, allowing you to meet your customers’ service parts needs by balancing the unique complexities of the global service supply chain. 11All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT PLACE
  12. 12. 12All content is Copyright © 2017 PTC, Inc. All rights reserved. 12 SOLUTIONS This was done by demonstrating SPM v11 consolidation not only met, but exceeded prior functionality and quality of the separate MCA v7 and SPM v9 solutions, and do so at a lower internal cost. PRATT & WHITNEY All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT PLACE
  13. 13. 13All content is Copyright © 2017 PTC, Inc. All rights reserved. 13 CHALLENGE The need to consolidate two very successful, but different, long-standing parts management solutions. PRATT & WHITNEY All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT PLACE
  14. 14. 14All content is Copyright © 2017 PTC, Inc. All rights reserved. 14 Results “We made a large investment into the future of our customer service. Our customer base relies on uptime, and optimizing our services just makes sense – for our customers and for the long-term success of our business.” − Robert Tomastik, Materials Center of Excellence Manager, Pratt & Whitney All content is Copyright © 2017 PTC, Inc. All rights reserved. 10% improvement in fill rate 10% reduction in inventory RIGHT PLACE
  15. 15. 15All content is Copyright © 2017 PTC, Inc. All rights reserved. RIGHT TIME RIGHT PART RIGHT PLACE TRUE INVENTORY OPTIMIZATION 5-25% Increased Customer Satisfaction 10-25% Part Availability Improvement 3-8% Margin Increase 10-35% Inventory Reduction RESULTS OF INVENTORY TRULY OPTIMIZED
  16. 16. 16All content is Copyright © 2017 PTC, Inc. All rights reserved. JLG Industries Metso Minerals READ THE CASE STUDIES Pratt & Whitney

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