Effectively Managing Distribution

Effectively Managing the Distribution

of Time-Sensitive Parts and Devices

Order Fulfillment Optimization

John Jasper

Marketing Specialist Advisor

FedEx

Joe Patton

CEO

Patton Consultants, Inc.

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Effectively Managing the Distribution of

Time-Sensitive Parts and Devices

Order Fulfillment Optimization

By John B. Jasper

When equipment failure occurs, business operations often come to a stand still and waiting for repairs becomes a major

expense. Getting back online means repair technicians need the right service parts quickly. Balancing technician on-board

inventory versus other supply options requires a combination of information technology and customer confidence. The following

report outlines the factors to be considered in the distribution and return of critical service parts, and how these factors can

best be coordinated for optimization.

Service failure response is a frequently

overlooked business strategy. People,

parts and information create the service

failure response. Optimizing processes

that allow organizations to integrate

service labor, replacement parts and

logistic information more effectively are

on the leading edge of modern service

advances and hold promise for reducing

profit loss when a failure occurs. Order

execution, best source location and effective delivery are all critical to the process. Proper

execution of the entire response requires pre-planning, access to information and accurate operations. Finally, the umbrella of technology affects each phase of response and creates significant impact.

A March 2006 Aberdeen Group report titled “The Convergence of People and Parts in the

Service Chain” asserts that best-in-class companies were almost two times more likely

than other companies to have closely aligned service labor and inventory operations.

These superior companies scored highest in first-call resolution rates, service level

agreement (SLA) compliance and uptime of serviceable assets....