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"Best Practices" in Spare Parts Business
The spare parts business is a major source of income for many companies but on the same time receives significant funds to finance its inventory.
In a range of client projects we have experiences that, despite its importance, the management and organization of the spare parts business highly differs between different companies. This is positively as well as negatively reflected in the companies’ overall financial results.
Companies with an excellent spare parts business generate up to 25% higher profits and require up to 30% less funds to finance its inventory.
In our management study on “best practices” in spare parts business we describe what characterizes “best practice” companies, what core competencies these companies obtain and give examples on how these competencies can be applied successfully.