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Service Parts Supply Management

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Service Parts Supply Management - The Challenges

In an effort to retain recurring revenues, improve profit margins and deliver better customer service, manufacturing and distribution organizations are increasingly looking for ways to automate and efficiently control the flow of service parts. They are focusing on service parts supply management to reduce costs, increase customer loyalty and gain a differentiated value proposition to grow revenue and retain their clients. The criticality of service parts supply management in manufacturing and distribution operations cannot be understated. Services organizations are challenged with ensuring that the right parts and/or products are available to their constituencies where and when they are needed. Customers in such industries as utilities, telecommunications, heavy equipment, aerospace, healthcare and electronics expect 100% accuracy and availability of products and parts to unmistakeably respond to their customers.

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Delays or errors in the supply of parts for services due to inefficiencies in the supply chain process will result in expensive delays such as downtime of critical equipment negatively impacting the customer experience. Services organizations must be mindful of the ever increasing costs of getting parts and products from source to service. Without the efficient management of the supply of service parts, manufacturing and distribution organizations are hamstrung by escalating costs, delayed parts shipments, and a lack of visibility into their parts supply chain to ensure that customer issues are resolved. These factors are driving services’ executives to move their manual business processes towards supply chain execution solutions; from forecasting and procurement, to managing inventory, to delivery management. At the same time focusing on their key performance indicators (KPIs) to continuously manage their service parts supply chain and keep their business on track.

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TECSYS Warehouse Management Software (WMS)

TECSYS’ Service Parts Supply Management Since 1983, TECSYS has been in a relentless pursuit of achieving market leadership for mission critical supply chain execution solutions to more than 600 mid-size and Fortune 1000 manufacturing, distribution and service parts operations in a number of industries. TECSYS’ service parts solutions optimize and automate labor-intensive logistics processes and drive cost out of their supply chains. They deliver optimum order accuracy and fill rate, they enable the management and tracking of mission critical service parts, as well as real-time and total visibility of their inventory, significantly improving customer service levels, throughput volumes, order turnaround times, as well as logistics costs and profitability. TECSYS’ service parts solutions run more than 25% of North America’s CAT dealers’ service parts operations, a number of the major automakers’ aftermarket service parts distribution centers, and a significant number of mission critical service parts operations in several other industries.

“Without TECSYS’ WMS, we would have not been able to handle the load. We would have had to add people. The idea is, with TECSYS’ WMS we do more with less. At one point we had 47 people, today we are handling the load with 28, even after increasing the number of products in our inventory by almost 20%.” Rick Hoose General Parts Manager Cleveland Brothers

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Read more:

Cleveland Brothers Service Parts Case Study (downloand PDF, 350 KB)

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TECSYS’ Service Parts Management Solutions Overview Supplier

Real-time Visibility

Demand Planning

Inventory Management

Supply Management

Collaboration

Why TECSYS

Six Sigma Efficiency & Productivity

▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪

▪▪ Become confident with a WMS system that already supports many Six Sigma processes ▪▪ Reduce availability for sale/picking from days to minutes ▪▪ Process from one to thousands of line items per order at the same time ▪▪ Pick multiple orders simultaneously into final shipping cartons ▪▪ Support wide product variances: weights, cubes, dimensions ▪▪ Process multiple units of measure using graphical images: “each”, “pack”, “case”, “pallet” ▪▪ Improve order, picking and shipping accuracy to 99.9% through Visual RF instructions ▪▪ Eliminate manual sorting/resorting of paper pick lists ▪▪ Satisfy critical tracing/compliance requirements: lot/ expiration, serial, recall, etc. ▪▪ Handle a wide variety of receipts: 10 to 500 lines, “eaches” to “pallets” ▪▪ Simultaneously receive multiple small POs without pre-sorting

Improve Customer Service Reduce operating cost Improve picking/shipping accuracy Reduce/eliminate paper-based processes Improve labor productivity; do more with less Improve space utilization to better manage your workforce, inventory outlets and warehouse ▪▪ Gain 100% full traceability of orders and parts

Respond to your customers effectively ▪▪ Significantly improve service and response time to your customers ▪▪ Fulfill “customer waiting” orders in minutes ▪▪ Reduce cycle time for large orders using zone picking ▪▪ Shorten rush orders from hours to minutes ▪▪ Gain real-time visibility throughout the lifecycle of an order

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Delivery Management

Customer

▪▪ Process many parcel/LTL deliveries/imports containers ▪▪ Eliminate packing/checking steps and their inherent bottlenecks ▪▪ Significantly reduce the length of time to train a new employee to become fully productive ▪▪ Easily scale your business; people, users, facility and storage to meet business demands

Visibility of Your Entire Supply Chain ▪▪ Gain real-time visibility—Six Sigma performance metrics and transactions by numerous criteria ▪▪ Achieve 100% full traceability ▪▪ Collaborate with suppliers/customers via self-service Web access ▪▪ Enhance operations through the use of graphics/ electronic documents

Quick Return on Investment (ROI) ▪▪ Yield a tangible ROI in less than two years ▪▪ Reduce operating budget by hundreds of thousands of dollars with TECSYS’ WMS

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Demand Management In service parts supply management, managing the demand of a proliferation of parts and inventory requires a high level of accuracy, analytical capabilities and intelligence. TECSYS’ Demand Management System is a powerful forecasting, requisitioning and planning tool designed to meet the supply needs of service parts operations. It is a solution that enables management to optimize their inventory investment, achieve savings in their supply chain execution processes, and improve customer service and satisfaction. For example, sharing demand data with trading partners greatly improves demand planning management’s visibility into metrics such as fill rates. This critical information can proactively be used to prevent backorders, reducing them by as much as 75% and improving fill rates up to 99.8%.

The TECSYS Demand Management System provides: ▪▪ Advanced forecasting, requisition and replenishment processes that enable service parts operational management to optimize inventory levels and ensure superior customer service. ▪▪ System-generated suggested replenishment orders, with subsequent buyer review, that allow buyers to focus on value-added functions like vendor negotiations and inventory strategy. ▪▪ Greater cost reduction by eliminating errors caused by manual tasks such as translating reports and spreadsheets into purchase orders. ▪▪ Improved control, with tools to dynamically track vendor and item lead times, as well as unlimited comments by vendor, purchase order or item, to help establish optimum inventory levels as consumption varies. ▪▪ Improved ROI by ensuring that the replenishment order review process results in the lowest possible product cost through analysis of all possible vendors, date-effective, quantity and vendor pricing.

Overall, better demand forecasting has proven to reduce inventory levels by an impressive 10%-20%! Leveraging demand data through demand forecasting and collaborating with trading partners can yield a reduction of 5%-15% in total supply chain costs, and up to a 3% increase in operating margins!

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Inventory and Warehouse Management Management of the supply of service parts in manufacturing, distribution and service operations is very critical. Given factors like demand unpredictability, part alternates and tight control on spare parts inventory, coupled with the need of efficiency in the warehouse and high service levels, requires significant decision support brought about by a warehouse management system (WMS). Collaborative and scalable, TECSYS’ WMS is a robust solution that empowers service parts logistics management to gain control over customers’ service levels, order accuracy, throughput volumes, turnaround times, as well as warehousing costs and profitability. TECSYS’ WMS is recognized by the leading industry analysts firm as one of the top WMS and visionary products on the market. It runs a number of the major automakers’ parts distribution operations in Canada, more than 25% of CAT dealers’ service parts centers in North America and is also the dominant solution for hospital supply networks in North America.

TECSYS’ WMS major capabilities include: ▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪

Advanced WMS functions for receiving, putaway, inventory moves, picking, packing, replenishment, shipping, loading and cycle counting. System-directed RF task management, task interleaving, and “will call” interupts. Multiple pick methods including wave, zone, batch, cluster and user-defined. Volumetrics and automatic shipping carton selection. Embedded advanced Transportation Management functionality including parcel carrier / LTL / FT management, rate shopping and freight auditing. Dock and cross-dock management. Value-added services enabling trading partner compliance on special production, kitting operations and custom labeling. Advanced inventory tracking - serial number, lot control and expiration date. Extended functionality for expanded supply chain execution: multi-warehouse, multi-regions, multi-language and multi-currency capabilities. Business intelligence including labor productivity, item velocity reporting and more. Seamless integration to several complementary applications and host systems, as well as automated materials handling equipment.

Read online: TECSYS Positioned in the “Visionaries” Quadrant of the WMS Magic Quadrant

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TECSYS Warehouse Management Software (WMS)

Optimized Distribution Network Distributor Vehicle

Branch store or Outlet

Self-service Kiosk

Branch store or Outlet

Distributor Vehicle

Office/Department

Distributor Vehicle

Automated, tracked delivery at every step

Store

Distributor Vehicle Drop Box End User Repair Facility Service parts warehouse

Tracking by shipper number

As services organizations strive to delight their customers, their supply chain is continually being challenged to deliver on efficiency and greater value. A holistic view of an organization’s service parts distribution network covering all of the many touchpoints of customer interactions can deliver optimum self-distribution efficiency and profitability. At the highest level, performance of a distribution network must be evaluated on two vital criteria: response time and accuracy. In achieving both, resource control and efficiency should include global visibility of inventory/virtual inventory, delivery of spare parts and products wherever they are needed: supply rooms and vehicles, service outlets including self-service kiosk facilities, repair facilities, drop boxes, retails branches and other warehouses.

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Service Vehicle

End Destination

With TECSYS’ Mobile Delivery Management (MDM), service parts management are enabled to create, pick up and deliver shipments directly from a handheld mobile device and offer their staff and customers real-time, online traceability of shipments similar to the functionality offered by major international parcel shipping organizations. From the loading of delivery trucks to the receiving dock, right through to any delivery location, every step is automated and tracked to ensure optimum customer service. When combined with TECSYS’ Warehouse Management Software, TECSYS’ MDM extends the load building and shipping functionality inherent in the distribution center, and allows for end-to-end visibility of all phases of the shipment through a service-centric portal. TECSYS’ MDM empowers service parts logistics managers to have complete control over product delivery anywhere in their distribution network, securely and cost effectively.

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Self-Service Customer Self-Service Kiosk (CSK) A significant number of organizations around the globe are leveraging the advantages inherent in deploying interactive self-service kiosks. Kiosks are a key component in the service parts supply value chain. The advantages that kiosks bring are significant, by giving their customers access to self-service applications, these organizations find that interactive self-service kiosks can deliver quickly the much needed parts for servicing customers. They also lower overhead, streamline and standardize the processes for providing information and executing transactions, and at the same time provide consistent, reliable service that turn into improved customer satisfaction. Brick and mortar companies are looking to self-service kiosks to enhance their customer’s experience and improve service, where services are normally performed by an individual, and reduce cost. They reduce the customer’s wait time, enhance customer service, and boost customer loyalty.

Supply Management System (SMS) In a point-of-use setting (walk-in inventory store or vehicle), the human step of having users manually manage inventory is a timeconsuming, costly and error-prone process, particularly in service-intensive operations. In this challenging environment, service parts managers have a significant need for the automation of their point-of-use logistics processes. They need global visibility and control of their “virtual inventory” at many locations. The concept of an inventory store or vehicle; a facility with close proximity to point-of-use, that enables service personnel to walk in, pick up what they need, scan it and walk out and is “automatically” refilled with the system, is what TECSYS’ SMS is all about. TECSYS’ SMS uses touch-screen technology to facilitate ease of access to information with the least amount of intervention. Furthermore, the supply chain process at point-of-use is completely automated. Products are captured via barcode and stored in the TECSYS system, enabling service parts operations to track usage, re-order to minimums and plan the demand accordingly. TECSYS’ SMS is a breakthrough, user-friendly solution that addresses point-of-use supply chain challenges head-on and provides service parts staff and supply chain managers with: ▪▪ ▪▪ ▪▪ ▪▪ ▪▪ ▪▪

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Immediate access to supplies anywhere in the organization’s supply chain Organization-wide inventory visibility and automated replenishment Reduced waste – no stockpiling or expired products User-friendly technology, freeing services personnel to focus on the customer Significantly reduced manual labor Significantly improved cash-to-cash cycle

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TECSYS Warehouse Management Software (WMS)

Visibility and Accessibility - Anytime, Anywhere Other Systems

TECSYS’ Platform TECSYS’ service parts applications can be accessed from any browser-based device, from anywhere at any time. The system is intelligent, extensible and as easy-to-use as a browser. It is adaptable to users’ environments, and is sensitive to each individual’s personal needs. As workers use the system more and more, TECSYS’ intelligent technology quickly tailors itself to each individual’s preferences and way of working, and presents that information exactly how they like to see it. Internet-based with SOA architecture, TECSYS’ open system software applications can be deployed on premise, as cloud applications or deployed as a SaaS (Software-as-aService) model. TECSYS’ software can collaborate and easily and securely be integrated to other complementary software applications, host systems as well as automated materials handling equipment using web services, file transfer or direct connections.

COLLABORATION / INTEGRATION Web Services | File Transfer

With TECSYS’ Visibility Solutions: ▪▪ Service parts executives are able to determine where the risks are and where the opportunities lie. ▪▪ Customers may be able to access views to track their own orders, as well as check on inventory levels. ▪▪ Vendors are able to see how their inventory is moving within the warehouse. ▪▪ Sales representatives are equipped with real-time information and always able to answer questions on products and inventory. ▪▪ Customer service reps are able to: ▪▪ Deal with critical shipments, from tracking to status of orders. ▪▪ Collaborate with trading partners ▪▪ Gain increased visibility on fill rates to end customers.

TECSYS’ Platform Open System | SOA-based | Java Technology | Cloud page 9

▪▪ Leverage demand data with partners to improve supply chain reliability, reduce inventory stocking, and optimize overall “upstream” supply operations. ▪▪ Forge more committed relationships with key customers/trading partners.

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Business Intelligence Intelligent Visibility of Your Service Parts Supply Chain Fundamental to managing your service parts operation is the ability to have clear visibility across your supply chain and to have access to actionable information in order to stay ahead of the competition. On any given day, you are faced with tactical decisions, such as dealing with the level of service parts inventory, ensuring that an urgent order is out of the door or handling certain inefficiencies in your service parts operation. On the other hand, you may be faced with strategic decisions such as dropping an expired product line and/or refocusing capital resources into other areas of your business where they can be more productive. These types of decisions require timely, accessible, and trustworthy information to not only manage your business, but to drive your business forward. TECSYS’ Business Intelligence (BI) solutions enable your service parts operation to gain clear and immediate insight into your organizational data assets in order to make informed decisions. Through TECSYS’ pre-packaged BI solutions and services, you have the necessary tools and knowledge to manage your organizational performance. TECSYS’ BI offers a suite of intuitive tools that are easy to implement, use and manage, as well as pre-built models and content such as reports, analyses, dashboards, multi-dimensional datamarts and metadata models to allow your end users to immediately realize your objectives. Managing information, making it accessible, and empowering your user community with easyto-use tools is essential to unlocking the value of your data assets and, in turn, improving your workforce’s productivity and efficiency through better and faster decisions. Furthermore, with the advent of mobility, TECSYS makes available to the mobile worker the same level of intelligence provided by TECSYS’ BI solutions with the significant advantage of added mobility on user-friendly devices such as the iPhone, iPad, Blackberry smartphone and Playbook.

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About TECSYS TECSYS is a market-leading provider of warehouse management, distribution management, supply management, transportation management, mobile delivery management and business intelligence software and industry-expert services to mid-size and Fortune 1000 corporations in healthcare, third-party logistics and general high-volume distribution industries such as service parts, import- to-retail, industrial distribution and more. The Company employs a seasoned team of experts who have extensive experience in supply chain management and in deploying TECSYS’ technology in high-volume distribution environments, enabling customers to significantly streamline logistics operations, reduce cost and improve customer satisfaction.

www.tecsys.com info@tecsys.com 1-800-922-8649

Service Parts Supply Management Solutions  

TECSYS' Service Parts Supply Management Solutions

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