Industry’s First IoT-Driven Spare Parts Planning Model Enables Precise Predictions, Saves Companies Millions of Dollars While Ensuring Excellent Customer Experience
Ashland, MA, September 13, 2017 – OnProcess Technology, a global pioneer in service supply chain management and optimization, today unveiled its Dynamic Parts Planning Service, the industry’s first IoT data-driven offering that predicts spare parts demand. By feeding historic and real-time machine signal data into its proprietary OPTvision microanalytics and visibility platform, OnProcess determines what parts will be needed and when they will be needed. The new service makes it easy for companies to cut inventory by six to 10 percent, potentially saving millions of dollars in carrying costs, while improving service levels and fill rates.
“Maintaining the right level of spare parts is critical. Excessive inventory can be prohibitively expensive. But if you have too little, you slow repairs and frustrate, and possibly lose, customers. The problem is, traditional practices for managing spare parts are woefully inaccurate because they’re based largely on historical demand and gut instincts. The static models don’t account for variables resulting from failed parts in the field. So, most businesses overstock to hedge their bets,” said Mike Wooden, CEO, OnProcess Technology. “OnProcess’ new Dynamic Parts Planning Service completely changes parts inventory management, bringing intelligence to what was largely a guessing game. Now, for the first time, it’s easy for companies to accurately predict spare part needs on an ongoing basis, and stock only what they require.”
How it Works
OnProcess leveraged two decades of post-sale supply chain and advanced analytics expertise to create a proprietary spare parts planning algorithm that incorporates machine failure predictability, in partnership with Massachusetts Institute of Technology Center for Transportation & Logistics. The game-changing model is the centerpiece of OnProcess’ Dynamic Parts Planning Service.
OnProcess’ service consumes the client’s base data and demand-side machine signals, and concurrently runs OnProcess’ highly predictive algorithm alongside traditional algorithms that include the client’s data inputs. It then compares the outputs using OPTvision. Clients access OPTvision to view recommendations on how to reduce their inventory and new buys. These recommendations are aligned to the client’s process and review period, whether weekly, bi-weekly or monthly, so that they’re easy to act upon.
The Dynamic Parts Planning Service complements and strengthens existing planning methods. Because it’s a light-touch service that requires zero integration with client systems and no need to change tools or solutions, it’s simple to implement.
OnProcess Dynamic Parts Planning Advantages
- Achieve unparalleled predictability
Most of today’s machine monitoring programs are designed to respond to signal failures. They also emphasize the few pieces of equipment that are starting to fail, rather than the whole. This makes it impossible to generate a sound baseline for analyzing machine performance and predicting failures. In stark contrast to this is OnProcess’ approach. By analyzing historical failure data on the entire installed base, OnProcess can predict the exact spare parts clients are likely to need, when, and in what quantity.
- Reduce inventory up to 10 percent
The proprietary modeling enables OnProcess clients to tighten spare parts forecasting and, as a result, reduce inventory levels by six to 10 percent. In addition, better monitoring and forecasting helps businesses be more proactive and prescriptive when taking actions to avoid and quickly fix machine failures. This, too, contributes to equipment uptime and reduces the need for spare parts.
- Save substantial money
Carrying costs average about 25% of inventory value. With Dynamic Parts Planning, clients can reduce their spend on physical space, parts handling, and deterioration and obsolescence. Even a six percent reduction in inventory can result in saving hundreds of thousands to millions of dollars per month.
- Maintain or improve service levels and fill rates
Aligning service operations with detailed maps of parts demand patterns increases the responsiveness of the post-sale supply chain. So not only are businesses holding less stock, they’re better able to fulfill parts requests and deliver a timely, improved customer experience.
To learn more about this service, attend the complementary webinar, “Introducing Dynamic Parts Planning,” on Wednesday, September 27, 2017 at 11am EDT. Click here to register.
About OnProcess Technology
OnProcess Technology is a managed services provider specializing in complex, global service supply chain operations – the flow of people, parts and services following the sale of a product. The company’s deep expertise, purpose-built technology delivery and embedded analytics-based process improvement, enable clients to quickly optimize and scale operations, grow revenue and profitability, and deliver superior customer experiences. OnProcess provides services in 23 languages and operates in five global facilities, including its Massachusetts headquarters and facilities in Maine, Costa Rica, India and Bulgaria. www.onprocess.com
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