Outsourcing your Service Parts Logistics

It’s important for companies to understand that inventory considers a vital but costly component of the service operation. Therefore, if you are looking to achieve optimal performance and still maintain low operational costs, it’s crucial to balance service levels, spare parts, location, and stock levels. If you settle for the right field service management, then you should be assured of a hundred percent visibility into your field locations and spare parts inventory levels which also include the serial number tractability and multi-bin stock maintenance.

Outsourcing your Service Parts Logistics

Ensuring effective service delivery

It’s the responsibility of logistics companies to provide timely services to its clients. That said, if they are to achieve timely delivery, then they should ensure that the content to be transported is stored in different warehouses across the various states. It’s also important for each vendor to have a particular niche within the distribution cycle which should start by having a statement of work.

All the customers should agree on what is required from the providers, and the information should then be considered in the statement of work. In most cases, the statement of work comprises of order picking accuracy, physical inventory, as well as cycle count.

Selecting a replacement

There are instances where a third-party provider opts to get out of business and the company needs to consider a replacement. When such cases occur, it’s important to go for enterprises that will provide high-quality service to your customers. The other most important consideration is that the company hired should look into acquiring employees from the previous provider so that they don’t end up working with a new, inexperienced workforce.

Problems associated with service parts logistics

Although there are different third party logistics providers, very few can offer service parts logistics – most of them may not have established their business fulfillment or supply chain. What’s more, most of the providers feature warehousing and transportation systems that are designed to support the distribution of finished goods. Service parts logistics deals with supporting products once they have been sold while supply chain management and fulfillment entails products logistics before they are sold.

When it comes to service parts, it’s usually more of just-in-case since most companies have an insurance policy to cover them should something happen to the equipment. There is also an issue of non-conformance given that you might deal with clients that are already upset or angry. Dealing with such customers will require you to have a low tolerance for error especially when delivering parts.

Turnaround time is an important aspect when it comes to service parts logistics. If the SLAs (service level agreements) specify elements such how quickly a technician will respond or how fast a product is to be repaired, then the timeline must be met. Failure to adhere to the service requirements might lead to hefty penalties.

There is a lot to consider when it comes to outsourcing service parts logistics, but what stands out is the need to have a streamlined way of business operation. What’s more, it’s important for companies to be fully covered and have the right parts at the right place and this will translate to better service to clients.

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