Case Study: Hightech

The high tech industry takes on a leading role in the aftersales business. Computer manufacturers who used to be product-oriented have recently begun consistently expanding their service portfolios and now offer a comprehensive range of services for the entire lifecycle of the product – from the initial financing through new purchases and right down to the recycling process at the products end-of-life. Driven by the increasing price and cost pressure, the not inconsiderable focus of the high tech manufacturers lies on the optimization of existing procedures and organizational structures in the aftersales field.

Barkawi Management Consultants have been trusted with the optimization of the replacement parts logistics for a large manufacturer of computers and IT infrastructure solutions. One of the largest leveraging factors in the reduction of costs was seen to be the restructuring of the replacement part stock management and the introduction of new methods and tools for the planning of future replacement part requirements.

The original planning processes were characterized by a multitude of manual calculations and consolidation stages which could not be standardized due to the differing data sources and the lack of automatic data consolidation options. This problem was further complicated by the high level of diversification of the spectrum of replacement parts: Very expensive parts on the one hand, and more cost-effective ones, on the other. In the end, the confusion of different planning methods and tools led to excess volumes of replacement stock and an unsatisfactory ability to deliver. As a result, the relationship between part availability and demand became imbalanced. Barkawi Management Consultants, in cooperation with the manufacturer, reorganized the entire planning process and introduced a new tool to support the process. This tool enabled the replacement parts stock to be optimized, in particular, during critical phases, namely the market introduction of new products and the withdrawal of existing products. Excess stock, which represent high depreciation risks, can now be avoided while, at the same time, improving the availability of replacement parts.