Tim discusses what I believe is a very important topic for service parts improvement. That is the fact that the majority of service companies out there are still using systems that were never designed to manage all the complexities of service parts. This causes all types of problems as the assumptions of finished goods planning systems are simply different than those of service systems. As Tim points out, companies doing this are probably struggling, and they are also carrying far too much inventory. Inventory savings from 10 to 50% can be expected depending upon the level of sophistication prior to the MCA implementation. And secondly, service levels correspondingly increase at the same time.

scmfocus.com/servicepartsplanning/2010/09/18/interviews-with-tim-andreae-svp-of-mca-solutions/

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