Forecasting and Supply Planning for Spare Parts

Forecasting for spare parts is one of the biggest planning challenges for supply chain executives across industries. This article describes the approach that can improve forecasts, and consequently the supply chain management. Because of increasing competition, the corporate world is now focusing more and more on improving efficiencies, reducing costs, and differentiating products. In fact, innovation in improving efficiency in the supply chain has become a major differentiator for improving the bottom line. The robust supply chain simulates and handles various scenarios with respect to lead time, transit time, service level, and forecast levels. Supply planners collaborate with their own suppliers by sharing spare parts order forecasts for buy orders as well as getting feedback on delivery dates and capacity available.