“The ability to comprehend the complexity of service parts procurement in which a balance between satisfying client service level requirements and bottom line financial considerations extends beyond the mere provision of a traditional warehouse management technology.
What is required is a holistic approach that is only possible through a combination of unparalleled insight, proven expertise, and an ability to think and act outside of the framework of “accepted” practices to collaboratively leverage superior technological breakthroughs.”
Excerpt from Baxter Planning Systems Latest White Paper (January 2009).
As organizations struggle with a contracting economy, determining the operational efficiency of current processes is no longer an optional exercise that can be reviewed at a future date.
This is especially true for companies in the service delivery sectors whose priorities are now squarely centered on extracting additional or unrealized value from current operations while maintaining or even enhancing customer service performance levels.
In the latest white paper from Baxter Planning System’s Knowledge Leadership Library publishing arm, we discover that “Far too often, service organizations vacillate between a belt and suspenders approach whereby excessive inventory levels are maintained as a means of ensuring parts availability, or conversely rely on an ineffective strategic sourcing process which requires significant increases in personnel.” In the current economic climate, neither option is conducive to a sustainable (or profitable) revenue model.
Add into the equation the similar challenges that are being faced by supplier partners, and the need to effectively streamline the end-to-end service parts planning process takes on even greater importance.
The Baxter paper provides an insightful and collective view of the service parts planning process and its corresponding impact on meeting contractual service requirements. It is one of the more interesting reads in that the methodologies presented, while focused on technology, medical and telecommunication companies with a high availability entitlement requiring same-day response, can easily be applied to most enterprises.
Use the following link to access the paper in its entirety: http://www.slideshare.net/piblogger/baxter-white-paper-service-parts-planning-presentation
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Procurement Insights 
Posted on January 8, 2009
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