Best Regards,
Bill Stankiewicz
Vice President and General Manager
Shippers Warehouse of Georgia
Office: 678-364-3475
Williams@shipperswarehouse.com
http://www.linkedin.com/in/billstankiewicz2006
http://www.slideshare.net/BillStankiewicz.
http://www.twitter.com/BillStankiewicz
Sustainable Consumer Packaged Goods member
CPG Branding and Forum Member
Please consider the environment before printing this e-mail
“Change doesn\'t start on the surface. It\'s generated from consciousness.”
Deepak Chopra
http://bill-stankiewicz.blogspot.com/2009/07/shippers-warehouse-in-top-70-food.html
http://ask.depaul.edu/Students/MentoringandAdvice/ASK_Away_Archive.asp
2. Content
A cknowledge the need for developing your Aftermarket
I dentify your Aftermarket Supply Chain
B uild your Aftermarket Organization
D efine your Commodity Aftermarket Policy
M ake your Aftermarket Trade-Off’s
S et up your Aftermarket Supply Chain
B uild your Service Parts Logistics Value Streams
U nlock the un-leased Potential of your Aftermarket
O utsource your Aftermarket Business
3. Acknowledge the need for
developing your Aftermarket
Service is the product
Service differentiates the Product
Service supports the Product
Product is the Service
5. Identify your Aftermarket
Supply Chain
The Closed Loop Supply Chain
Forward Logistics Service Logistics
Plan Source Make Deliver Return Service Re-Make
Spare Parts
Reverse Logistics Repair
Demand Planning
Parts Demand
Warehousing
Planning
Testing Procurement Recovery
Warranty
Warehousing Refurbishment
Validation
Research &
Procurement Manufacturing Customization
Design
Warranty
Customization Remarketing
Redemption
Remanufacturing
Re-Utilization (Re-
Inbound Logistics Fulfillment Fulfillment
Make)
Recycling
The Extended SCOR Model – Stef de Bont 2006
6. Identify your Aftermarket
Supply Chain
• The traditional Forward Logistics Supply Chain is
extended
• The Service Logistics Supply Chain is focussed on
all activities related to the support of products
after delivery to the market
• Linking the Foward and Service Logistics Supply
Chains creates an integrated Closed Loop Supply
Chain
• The Closed Loop Supply Chain is covering all
Supply Chain activities during the Life-Cycle of a
product
7. Build your Aftermarket
organization
Customer Relation
Service and Maintenance
Management
Field Service
Call Management
Operations
Service Parts Logistics
Service Parts Fulfillment
Reverse Logistics
Management Logistics
8. Build your Aftermarket
organization
• Build solid organizations for Customer Relation
Management, Service and Maintenance
Management and Service Parts Logistics
Management
• Optimized aftermarket management requires an
integrated and aligned management of all
individual disciplines
• Disconnection between the 3 entities heavily
impact the effectiveness of the service delivery
and associated supply chain costs:
– Warranty entitlement
– Failure diagnoses
– Field returns
– Spare parts inventory levels
10. Make your Aftermarket
Trade-Off’s
Service Parts Logistics Trade-Off's
Importance Low
Area Service Levels Inventory Levels Supply Chain Costs
Service Levels Advanced replacement Same day delivery services
High
Like-for-Like / Same-for-Same
Inventory Levels replacement
Centralized inventory
Supply Chain Costs Next day delivery services Decentralized Inventory
11. Set up your Aftermarket
Supply Chain
Service, Maintenance and
Area Reverse Logistics Fulfillment Logistics
Repair
Field Centralized Return Centralized Spare Parts
Location Repair Depot Repair Depot Return Decentralized Spare Parts
Repair Vendor Vendor Direct FSL
Car Return Car Replenishment
Collection / PUDO PUDO
Delivery Country Stock Room Country Stock Room
FSL
Customer Replaceable Unit (CRU)
Spare Parts Type Field Replaceable Unit (FRU)
Whole Unit
Channel Partner Channel Partner Channel Partner
Management &
Direct (insourced) ODM / OEM / Vendor Direct (insourced)
Execution
Direct (outsourced) Insourced / Outsourced Direct (outsourced)
12. Build your Service Parts
Logistics Value Streams
Reverse Logistics
Management Process RMA Management
Execution Processes Receiving De-trash Verification Testing Put-Away DGI
Service Parts Management
Procure-to-Pay (Order) Management
Management Process
Warranty Redemption
Re-Utilization Management Demand Planning & Sourcing
Management
Execution Processes Pick Pack Ship WIP Receiving Verification Put-Away
Fulfillment Logistics
Management Process Order-to-Cash (Sales Order) Management
Execution Processes FGI Pick Kitting Testing Pack Ship
Example: Centralized Return with External Repair
13. Unlock the un-leased Potential
of your Aftermarket
Aftermarket Focus Area
Area Opportunity Call Field Service Reverse Service Parts Fulfillment
Management Operations Logistics Management Logistics
Avoid No Fault Found (NFF) returns
by improving failure diagnoses
Reduce Spare Parts inventory by early
detection of NFF returns
Spare Parts Inventory
Levels
Reduce Spare Parts inventory by
improving Repair Cycle Times
Reduce Spare Parts inventory levels
by outsourcing Turn-key Service Parts
Management
Optimize Warranty Redemption (claim
warranty at OEM)
Service Costs
Avoid warranty costs by improving
warranty entitlement
Optimize Reverse Logistics processes
by improving RMA alignment
Supply Chain Costs
Optimize Supply Chain costs by
outsourcing Service Parts Logistics
(new) market potential for returned
Business Development products by exploring Re-Make
opportunities
14. Outsource your Aftermarket
Business
Forward Logistics
Contract Manufacturing Physical
Distribution
Plan Source Make Deliver
Service Logistics
Physical Distribution Service Logistics
Contract Manufacturing
Service Logistics Re-
Return Service
Make
Mid-1980s 1990s Today
15. Outsource your Aftermarket
Business
Parts Broker
ODM / OEM
Specialized
Call Center
4PL / BPO
Provider
Vendors
Channel
Partner
Vendor
Repair
EMS
3PL
Aftermarket Area Activity
Customer Relation Management Call Center
Maintenance
Service and Maintenance
Repair
Reverse Logistics
Testing
Warranty Validation
Warranty Redemption
Re-Utilization (Re-Make)
Spare Parts Demand Planning
Procurement
Warehousing
Service Parts Logistics
Customization
Fulfillment
Repair
Recovery
Refurbishment
Remarketing
Re-Manufacturing
Recycling
Core Competence
Business Development
16. Outsource your Aftermarket
Business
Economy-of-Scale Opportunities in an Outsourced SPL Model
Area Concept Description Advantage
Building a commodity generic return
Lower supply chain costs and increased
Warranty Redemption OEM Channel channel for warranty redemption with the
warranty redemption effectiveness
OEM
Managing commodity generic and Lower inventory levels across multiple
Spare Parts Management Service Parts Pool
unbranded spare parts inventory levels brand owners
Optimized End-of-life management of a
Product Life-Cycle Outsourcing End-of-Life management in the
Product Steward Ship product reducing E&O inventory levels and
Management overall product life cycle process
increasing re-utilization of products
17. Summary
• The aftermarket is an emerging and dynamic
area of the supply chain
• Outsourcing of aftermarket activities can be the
next level of outsourcing after Physical
Distribution and Contract Manufacturing
• Multiple market players are extending their
service offerings in the aftermarket
• There is no defined business model about who is
who so there are multiple opportunities for all
market parties
• There are multiple business models possible
which requires collaboration across the
aftermarket supply chain
18. About Logi3
• Logi3 is specialized in supporting organizations to
build, manage and optimize their Services
Business
• Logi3 offers Interim Management and
Management Consultancy services in the area’s
of Distribution Logistics and Service Logistics
• Logi3 is specialized in Implementation
Management for Outsourced Business via the
Check Point Model concept
19. We like to inform you about our
services:
Logi3 – Logistics & Supply Chain
S.A. (Stef) de Bont
P: 0031-(0)6-28568600
E: info@logi3.nl I: www.logi3.eu