Aftermarket Parts Industry: Manage Huge SKU Portfolios Profitably
In some ways, challenges for aftermarket parts manufacturers remain the same from year to year. You’ll always have to deal with large inventories, thousands of low-volume and slow-moving items, and the need to expedite delivery when demand suddenly spikes for a “C” item.
But change is coming on a global scale. Technology continues to move forward, challenging you to stock items that incorporate the latest innovations. Political developments such as Brexit, the end of NAFTA, and new tariffs make the trade climate uncertain. And one never knows when the next recession is coming. All of this makes it more important than ever for aftermarket parts manufacturers to manage inventory carefully.
The Demand Solutions Digital Supply Chain Platform is designed to help aftermarket parts manufacturers set and exceed new business goals—even in a volatile environment.
Aftermarket parts organizations use Demand Solutions to:
- Boost service and profits by optimizing inventory policies for fast- and slow-moving parts.
- Reduce costs and risk by using machine learning to enhance planning.
- Implement precise, continuous planning for broad product portfolios and long-tail items.
- Automate routine tasks and focus more attention on delighting customers.
- Shorten response times by strengthening supplier relationships and increasing the flexibility of processes.
Stay Ahead of Evolving Buying Patterns
Adding to the complexity of running a successful aftermarket parts business, today’s consumers are changing the way they buy. They often research products online, purchase online, and want the flexibility to pick up and return products to a physical store. This means manufacturers that operate retail locations must now maintain inventory flexibility even as they respond to the age-old challenges of differentiating their products and earning customer loyalty.
With Demand Solutions, aftermarket parts manufacturers can:
- Easily manage huge SKU portfolios by automatically applying multi-dimensional stock policies based on multi-variate segmentation.
- Increase forecasting accuracy by predicting service parts demand.
- Simplify lifecycle planning by addressing frustrations such as product variables and frequent substitutions.
- Make global supply chain improvements by using multi-echelon and cross-organizational planning.
- Optimize inventory by categorizing investments based on margin contribution within specific global markets.
Maintain a Responsive Supply Chain
When you manage your business by exception, you can keep a massive, diverse inventory available without inflating your labor costs. Demand Solutions offers powerful exception management tools that enable you to manage your entire demand chain in ways that minimize the chances of stockouts while reducing your safety stock. Explore how Demand Solutions can help you manage huge SKU portfolios profitably.