Saturday, 29 March 2014

Archetype Scenarios of Aligned Spare Parts Logistics Strategies

Archetype scenarios
Step 1

Cost Leadership in competitive markets
Service leadership in competitive market
Niche strategy in markets with limited competition
Long term partnership in regulated markets
Highly competitive
Limited competition (oligopolistic situation)
Regulated, certification requirements
Product/part characteristics
Complex, huge number of units (large installed base)
Complex, differentiated
Maintenance strategy
Preventive (never fail policy)
Spare parts obligations
Short delivery obligation
Long delivery obligation (some maintenance contracts)
Long delivery obligation (maintenance contracts with many customers)
Delivery obligation for the whole products lifetime (maintenance contracts with most customers)
Step 2
Life cycle
Long production phase, no information flow about the condition of installed base
Long utilization phase (long lifetime of the product)
Long production and utilization phase
Long R&D phase (intensive cooperation with customers during all phases)
Forecasts are possible due to the short delivery obligation

Subjective estimations and indicators and coefficients
Forecasts are hardly realizable due to long utilization phase

Stochastic and model based methods
Accurate forecasts are possible due to the huge amount of maintenance contracts

Indicators and coefficients
Accurate forecasts are possible due to a good knowledge about the condition of installed base

Indicators and coefficients
Step 3
Profits (major goal)
Differentiation (major goal), customer loyalty, diversification, profits
image (major goal), customer loyalty, profits
Customer loyalty (major goal), reputation, profits
Supply options
Due to long production phase uncomplicated supply out of the regular series production. Final stock during the utilization phase.
Internal production, utilization of compatible parts, reconditioning of used parts
Internal production, separate workshop, final stock
Utilization of compatible parts, separate workshop, final stock
Inventory options
Cost efficient central storage
Local, proximity to customers (extensive service network)
Local and central
Local, very responsible service network

Source:  A strategic framework for spare parts logistics, Vol 54, No 4, Summer 2012

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