A case study for service business leaders
Develop a service parts management strategy

Case Study:

A large multinational engineering conglomerate originating from a manufacturing background, had it’s company supply chain focus on new machine design and build projects. The service logistics network has been established through various acquisitions. Yet, despite having global presence under one brand image, limited sharing of best practices and resources has made it difficult for the company to provide a completely satisfying customer experience.

The objective was to achieve best in class service parts management that would: 

  • improve customer satisfaction and retention,  
  • reduce inventory carrying costs, 
  • improve product uptime and availability,  
  • increase service profitability, and 
  • increase service revenues. 

Undertaken as part of a larger service strategy review, a new service parts management strategy needed to be defined.


The company mentioned that the project helped them to thoroughly assess and benchmark the current activities and define the needed changes in a relatively short period of time instead of several months, due to being able to compare best practices. As a side-effect, the workshops assisted in change management and aligned the global service organisation with heads from supply chain and finance departments to become more aware of each other’s way of working.  

Having the SCP Standards for Service Parts Management at hand, the workshop sessions were supported and structured based on industry best practices. “It is a “ready-to-go” knowledge base and saves tremendous costs and time. It provides a focused set of tasks for us to improve the business”, described one of the company’s Project Managers the support of the SCP Standards.

By using the best practices for parts management organisations in the form of guidelines, including a description of the key processes, management practices and key performance metrics, the company was able to assess and identify changes in a relatively short time period, with limited effort needed from their own resources and with acceptable costs.

Learn how to define your service parts management strategy and achieve alignment within your organisation using the case study. In addition, examine the handbook that provides guidelines on how to successfully work on the strategy with the help of the Service Transformation Centre.

Sign in to read Develop a service parts management strategy