Aberdeen estimated the service parts management solution market at $105 million in 2004 with a projected year-over-year growth rate of 20%.

Aberdeen’s report recommends six primary areas of SPM solution evaluation - planning, forecasting, inventory management, pricing, contract management, and execution. Supporting its recommendations, Aberdeen highlights companies that have leveraged SPM solutions to achieve top performing service parts management operations. For example, Toshiba America Medical Systems was able to identify millions in excess inventory, reduce repair costs, and optimize its global, regional, and local stocking locations. As a result of their solution deployment, Toshiba was also able to reduce service parts stockouts by 13%, increase planner productivity by 25%, increase inventory turns by 35%, and reduce inventory write-offs by 24%.”

“Selecting the right service parts management solution can significantly impact company performance,” said Eric Hinkle, Servigistics CEO. “Many of our clients, after switching from alternative systems to Servigistics, realized substantial incremental value, quickly achieved compelling returns on investment, and dramatically increased service levels and customer satisfaction. Aberdeen’s Solution Selection Report is a very useful tool for companies evaluating service parts management providers.”

The Service Parts Management Solution Selection Report is a handbook for the effective assessment of service parts management strategies and technology and includes frameworks to help enterprises assess their service parts management competence, scope solution requirements, and select the best-fit solution. A complimentary copy of the report, courtesy of Servigistics, is available at http://www.servigistics.com/whitepaper9.htm