SERVICE PARTS MANAGEMENT
Delivering Value in a Topsy-Turvy Market
This software market, like most, took a hit in 2009, but we still like its long-term growth poten-
tial. We continue to see companies adopting service parts management software successfully,
saving millions of dollars in inventory costs.
—William McNeill, research analyst at AMR Research
y the time the numbers are all in for 2009, we
expect the service parts management software
market to have decreased by 6 percent to 8 per-
The second trend we’re seeing is the incorporation of
service parts management into performance-based logistics.
Companies in A&D, automotive, high-tech, medical device, B
cent. This actually isn’t half as bad as it might sound. Nearly every and other verticals are being asked to support performance-
software market in supply chain management suffered, but serv- based contracts, where instead of just selling a product,
ice parts management seemed to weather the storm better than they’re also selling the use or uptime of said product. This is
most. We continue to see quantifiable benefits delivered through a new experience for many companies, so they’re turning to
the use of service parts management software.
the technology vendors in service parts management to help
Within service parts management, we see a couple of plan on how to stock inventory profitably and still be able to
trends. The first is the integration of the functionality more deliver on their contracts.
closely with order management. As companies integrate planning with execution more closely, we’re seeing an increasing
number of inquiries around order management systems that Service parts management will continue to thrive, but perhaps
integrate with service parts planning (SPP). Typically, SPP soft- not in its current form. Based on the nature of the inquiries we
ware passes the stocking recommendations to a different sys- receive and the development plans of the vendors, we suspect
tem to take care of ordering any parts that might not be in stock that overall the functionality will become more incorporated
or are understocked. Usually that other system is ERP, but into larger supply chain management, service management, or
we’re seeing interest in order management provided by service ERP suites. Either way, it will continue to do well, and we
applications and commerce applications.