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Newton.Vaureal Consulting - Logistics and Supply Chain Management - Paris
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Service life-cycle management

A service offer that continually adapts through the product life cycle

Supply Chain has to hypothesize in order to calculate means and organization in relation to customer-service targets. At a given level of service, this corresponds to the optimized organization of logically efficient resources (the best service at minimum cost).

However, the ambition of service expectation (or the very nature of service) varies for each product according to where it is in its life cycle:

  • When launching a product, expected service is based on the responsiveness of the Supply Chain and its capacity to cover any acceleration in the market and/or ability to integrate a new reference system into management systems.
  • In contrast, at the end of a product’s life, expectations focus more on the management of obsolete or dead stock as well as on number of returns.

Deployment of Service Life-Cycle Management

“Service Life-Cycle Management” aims to set up an organization and means capable of regularly adapting to changes related to the status of product needs. The Supply Chain, in its supervisory role, must detect changes in status by following indicators marking a product’s life cycle. It must also be able to resize its resources to meet these new requirements. In this way, it plays an anticipatory and functions-coordination role – always with the goal of optimizing a company’s capacity.

Integrated into a Sales & Operations Planning (S&OP) approach, Service Life-Cycle Management enables you to fine-tune your business forecasts and recommend achievable targets tailored to your future needs. By using powerful management tools, this concept facilitates the operational management of events.

Today, our Supply Chain and Logistics consultants deploy this principle mainly for products with high-technological value, or for complex, long-life equipment. The gains thus made facilitate the maintenance and management of spare parts for this equipment.