In this final part of our exploration of total cost optimization, we bring these operational and inventory costs together to show that service level is better viewed as an output of an optimization rather than as a goal, as the right service level minimizes the combination of these costs.

As we continue our exploration of cost optimization, we consider two additional costs that must be balanced in the optimization process: inventory costs and instability costs.

This is part one of a three-part discussion on Total Cost Optimization, Baxter Planning’s unique, proprietary optimization approach to service parts planning.

For decades, companies have focused on the finished goods supply chain. It is very important and contributes to a massive amount of revenue for any organization, but in the background, there has been another type of supply chain slowly growing, the service supply chain.

With a flurry of the manufacturing supply chain trying to do more with less and coping with the varying degrees of a remote workforce, it’s critical to turn more to automation to lessen the load on individuals. The question is “…but at what cost?”

In this blog we recap our recent panel at the Field Service Virtual Summit 2020. The focus of the panel was to discuss the opportunities presented by efficient parts and supply chain management to improve customer satisfaction.