Mano Ranjith’s Post

Unlocking Supply Chain Excellence in Aftermarket Planning: Uniqueness and Strategies Spare Parts planning presents distinctive challenges, with over 95% of SKUs falling into the so called "long tail"—characterized by being slow, intermittent, and erratic—while still making a significant contribution to revenue. Therefore, the key focus in spares planning is effectively managing this "long-tail," necessitating a shift beyond forecasting to optimize service levels and inventory. While some businesses milk, diesel, cement, tires, CPG, or FMCG can be solely managed through forecasting and demand management push cycles, addressing the planning needs of "long-tail items" requires a thorough understanding of demand/supply variabilities, frequencies, and service level factors. Dynamic adjustment of safety stocks is crucial for achieving target service levels without overcommitting to inventory. Adding to the complexity, none of the conventional algorithms used by Data Scientists can provide satisfactory outcomes. ToolsGroup customers achieve exceptional results, boasting 99% plus service levels, reducing lost sales by 20-50%, and simultaneously cutting inventory by 15-22%. This success is attributed to the unique inventory mix optimization, primarily driven by our proprietary probabilistic algorithms. Find out how this is made possible: https://lnkd.in/fxpB-aX #SupplyChainExcellence #AftermarketPlanning #InnovationInSupplyChain #ToolsGroup #OptimizationStrategies