ARCHIVE FOR THE ‘parts-pricing-and-logistics’ CATEGORY
May 02, 2019 • copperberg • Parts Pricing and Logistics
Skype, the VOIP service released in 2003, the pre-cursor to video-calls over the web is now taken for granted. A true game changer, the application means business meetings can take place in one room with worldwide attendees interacting in real-time; friends and family can keep in touch from both sides of the world. In technological terms, it was disruption on a huge scale. It seemed appropriate then that one of the creators of Skype, Jonas Kjellberg, should present a keynote at this year’s Spare Parts Business Platform.
Delegates packed into the main conference room to hear how the Swedish entrepreneur disrupted and continues to disrupt in pursuit of constant innovation. Billed as part of the event’s Service Mastery Day, Kjellberg’s hour-long presentation urged delegates to bring this culture of disruption to their business framework. Once the cash cow of the service sector, spare parts has perhaps remained stagnant in its outlook and, Kjellberg, suggested disruptive elements such as AI, drones and 3D printing should be welcomed and embraced.
However, political upheaval through Brexit is creating a type of disruption a long way from the technological and business sort that drives innovation. Indeed, as I write this the EU has just agreed an extension to the UK’s departure, pushing the exit day back to 31 October. A major thread of negotiation and debate is the movement of goods in the EU and any tariffs imposed will inevitably have an affect on the supply chain. In a fascinating presentation towards the end of the first day, Lars Karlsson, CEO and Managing Director at KGH Global Consulting and an expert in customs warned delegates about the impact that the UK’s withdrawal could have on logistics. Karlsson, who was commissioned by the European Parliament Constitutional Committee to suggest possible border-solutions post-Brexit shared his thoughts on the impact of import and export between the EU and UK. Of course, while businesses are doing everything they can to prepare for all Brexit outcomes, until politicians come to an agreement we can still only speculate on what sort of mark Brexit will leave.
"Once the cash cow of the service sector, spare parts has perhaps remained stagnant in its outlook..."
One future trend that could impact positively on the supply chain is 3D printing and on day two of the conference, Atanu Chaudhuri from Aalborg University – and recent guest on the Field Service Podcast – presented case studies from two Danish manufacturers to delegates on selecting suitable spare parts for 3D printing (or additive manufacturing to give it its other term). Adopted within the medical, automotive and aerospace sectors additive manufacturing is yet to truly take-off in service, due in-part to the lack of a solid business case being waved in front of a perhaps cynical industry. However, as part of Atanu’s presentation, Mads Blaabjerg Uhre from Nilfisk, a supplier of professional cleaning equipment, and an advocate of 3D printing took part in a far-reaching Q&A on the subject, which may have persuaded some of those in the audience to re-consider their view on the subject.
Elsewhere on day two, sessions straddled warehouse management, digitization and stock optimisation. On the latter, Andrea Capello, Head of Parts BU at Ariston Thermo, a producer of thermic comfort products for commercial and industrial use, was able to share some of the guidelines that he uses to check stock-level by cluster and some of the tools used in this process. He outlined the importance of having a clear understanding of stock-balance, including inventory and location and affirmed that only then can you be fast and responsive to the customer.
Delegates left the two-day event enriched with new ideas, contacts and an accurate overview of where they and their business sit in the spare parts world. Thomas Igou, Editorial Director at Copperberg, the organisers behind the event, said this year’s conference had been a success and he looked forward to the next gathering. “With over 150 participants from all corners of Europe,” he said, “and across the manufacturing sector, 12 partners including the leading solutions providers in the sector, and high profile speakers that included the co-founder of Skype, the event was two intense days of knowledge sharing. I look forward to the next edition in February 2020, this time in Germany.”
A year is a long time in field service and 2020’s Spare Parts Business Platform, I’m sure, will reflect the trends of a dynamic and constantly moving industry.
Apr 08, 2019 • News • Survey • Third Party Service Provider • Parts Pricing and Logistics
A survey into companies attitudes towards their Third Party Logistic Suppliers (3PLs) has shown less than a fifth (18%) were happy with the service they were receiving.
The survey, conducted by supply chain and logistics consultancy SCALA, sought opinion from both companies and 3PLs with the topline results highlighting significant discrepancies between the satisfaction levels 3PL customers have with their Third-Party Logistics suppliers, and the perceived satisfaction rates of the 3PLs themselves.
The findings showed 3PLs had an exaggerated sense of satisfaction and optimism when it came to their own perceived customer satisfaction rates with 38% believing their customers are “very satisfied” with their performance, which is more than twice their customers’ actual levels. However, 15% of 3PLs also conceded that their clients were very dis-satisfied.
John Perry, Managing director at SCALA, said both parties could learn from the survey's findings. “Two things are clear from this research," he commented. "Firstly, customers of 3PLs need to be more vigilant in their approach to tendering, awarding and managing their 3PL contracts. Secondly, 3PLs should be doing more to increase satisfaction levels amongst their customers and identifying better ways to accurately gauge the state of their customer relationships.
You can download the full report here.
Mar 26, 2019 • Features • Management • copperberg • Field Service Events • Field Service Summit • Thosas Igou • Parts Pricing and Logistics
This April, Copperberg is returning to the Warwick Conference Centre for its 4th Annual Field Service Summit and 2nd Annual Spare Parts Summit, bringing over the course of two days 200+ service and parts leaders from the UK manufacturing industry. Chaired by Andy Neely of the Cambridge Service Alliance, both days will be filled with intense group discussions and inspiring keynotes.
First up on 3 April, The Field Service Summit will focus on how to move from a service culture to an experience economy.
The right customer experience directly translates to economic gains and differentiation as premium service. With the growing number of connected devices, easier integration of new sensors and the rise of automation in the field, customers now demand a more memorable experience. The experiences consist of being able to make the customer participate, connect and build a relationship with the service, assuring loyalty in the long term. To be able to shift from a service culture to one based on capabilities and outcomes demands organisations need to go the extra mile in providing prompt, accurate and reliable solutions in the short customer attention span.
This shift requires developing internal competencies and changing leadership style while finding seamless solutions, to make field service memorable customer experiences.
At the 3rd Annual Field Service Summit UK in April 2018, more than 120 field Service Directors gathered to learn how to use the latest advances in software technologies to improve their connection points with their customers and maximise their service operations’ financial performance.
In 2019, The Field Service Summit returns with an even more engaging value proposition: entering the era of the Experience Economy with an outcome based service strategy.
Memorable keynotes will include Rajat Kakar, Vice President, Head of Product Related Services at Fujitsu on Preparing your CEO for the Unprecedented Service Digital Disruption. Other keynotes will include Airstream, IFS, SightCall, Salesforce, ebecs, clicksoftware, and regular Field Service News contributor, Bill Pollock from Strategies for Growth.
The highpoint of the event, though, will be the idea blitzes: 16 group discussions on distinct and dedicated topics within field service management that will run four times throughout the day, for intense discussions.
Then on 4 April, the 2nd Annual Spare Parts Summit will take place, focusing on putting availability at the core of a manufacturer’s strategy.
Spare Parts is the money-maker of a service division; however, in a time of great uncertainty, where the boundaries of competition are crushed wide open by tech giants and technological breakthroughs, and where global trade agreements are under constant threat by protectionist governments, the need for change and innovation is more important than ever.
"Spare Parts is the money-maker of a service division..."
The 2nd Annual Spare Parts Summit will guide you through the most modern tools and strategies to ensure that your customers’ expectations, availability, is ensured. The event will offer engaging peer discussions to discuss how to not only digitize service offerings for the benefit of customers and profit margins but how digitalisation will impact spare parts businesses and the industry as a whole.
The event will also look at pricing strategy as a key to business growth, and how to be coherent in pricing approaches in an omnichannel environment where ecommerce becomes a vital tool to lock in customers and fend off competition.
Finally, the event will also showcase innovations in warehouse management, supply chain optimization, and how to use IoT for parts failure predictions in order to ensure that manufacturers always deliver the right part at the right time.
Some keynotes to look out for: the Increasing Influence of Ecommerce in The Industrial Aftermarket by Carl Daintree from Sandvik. In this session, Carl will highlight Consumer/Customer behaviour analysis, and their new expectations regarding a seamless online experience with 24/7 access to information as well as why manufacturers are now working towards utilising Ecommerce as their primary sales channel, and exploring the benefits of this strategy.
Another keynote to look forward to: When reality trumps value-based pricing of spare parts - Moving beyond from Price Setting to Price Getting by Matias Mäkelä, Pricing Manager at Kalmar Services.
The session will focus on how even state-of-the-art product segmentation, carefully built value-based price structures maintained by modern pricing tool do not always guarantee the optimal result in final net prices. Matias will share his hands-on experiences on tackling margin erosion due to various indirect factors affecting net price getting.
With over 200+ service and parts leader in attendance over two days, the Warwick Conference Centre will once again be host to the UK’s largest business conference for service leaders in the UK, with a unique format putting delegates at the forefront of the program with the idea blitzes.
You can register for the Field Service Summit here and the Spare Parts Summit here.
Mar 25, 2019 • Features • 3D printing • manufacturing • Parts Pricing and Logistics
Of all the technologies currently vying for the attention of field service professionals, 3D printing is the one that appeals most to the imagination.
Sure, Augmented Reality and Artificial Intelligence are exciting, and the use-case for both is becoming stronger. But how about a printer that prints a tangible, useful component? A spare part that an engineer can produce and integrate while out on a job. What if 3D printers with robot arms were the final part of a first-time fix process, working in tandem with selfmending, machine learning assets?
I say the above with tongue firmly in cheek. I think we’re a long way from a technician-free fixing procedure; in fact, I think the human, engineer element will always be a constant, but you can see why the technology gets the juices flowing.
That said, the concept of 3D printing or additive manufacturing is not as new as we might think and has been in a period of gestation for nearly 40 years. Its first milestone was in 1981 when Dr. Hideo Kodama from the Nagoya Municipal Industrial Research Institute published an account of a working photopolymer rapid prototyping system. A machine that produced photo-hardened materials, corresponding to a cross-slice of a model, that when layered create 3D tangible parts.
Unfortunately, lack of funds meant Doctor Kodomo was unable to pursue his theories but American Charles Hull, in 1984 etched (or printed) his name in history by inventing stereolithography which used digital data to produce the 3D model. Then in the early 90s, the world’s first Selective Lasering Sintering (SLS) machine was invented, which shot out a powder, rather than a liquid, to build a solid (if slightly imperfect) 3D object.
The turn of the millennium saw the medical sector fully embrace 3D printing when over the space of ten years, scientists were able to create a miniature kidney, a prosthetic limb and bio-printed the first blood vessels using only human cells.
But where are we now with the technology and what manufacturing industries are really squeezing out the potential of additive manufacturing?
“We do not have enough people who can design a product for 3D printing..."
“The forerunners of the adoption of these technologies have been the aerospace and automotive sectors,” says Atanu Chaudhuri an Associate Professor of Operations and Supply Chain Management at the University of Aalborg and an expert in additive manufacturing. “However, there are a lot of other industrial manufacturers who are exploring this but are at different stages of adoption.”
I recently recorded a podcast with Atanu, ahead of his presentation at the Spare Parts Business Platform in Stockholm, which focused on the 3D printing of manufactured spare parts. With producers at various stages of integration, I asked what challenges they faced.
“One of the most critical challenges is the lack of skills,” he says. “We do not have enough people who can design a product for 3D printing, who can understand the process and technology. However, I think the companies who have invested in the machines, they have taken a step forward, but it is always a costly investment and there has to be a strong business case.”
The business case is essential when discussing any adoption of technology not just in additive manufacturing but in other young technologies. Boards are keen to see a genuine return on its investment especially when it carries financial risk.
However, in the case of 3D printing, Chaudhuri urges companies to take a long-view. “If a company was to do a one-to-one comparison with existing manufacturing technology, it’s most likely that 3D printing will not be suitable,” he admits.
“But if you take a more life—cycle perspective and look beyond the cost on a part-to-part comparison or look at the usage of the part over a lifetime of the product, say 15 or twenty years, suddenly you will see a huge difference.
“You will not be having a lot of inventory, you reduce the inventory carrying costs and maybe the environment will benefit, you will use fewer materials and suddenly the business case looks much better,” he says.
Atanu is an enthusiastic, yet realistic advocate of the technology and its infrastructure. Alluding to his earlier point of training, he admits that universities can come under scrutiny for not providing enough skilled workers, however when I ask what inspires him to do what he does, he cites his students and the role they will eventually play in the future integration of additive manufacturing as a key influence.
“It’s a motivation for me to train the next generation of engineers, industrial engineers or supply chain professionals who are ready to take on the world of digital manufacturing.
“I get immense satisfaction when my students graduate and get positions at the top companies and I can continue working with them. That is the main motivation I have,” he concludes.
You can listen to the Field Service Podcast with guest Atanu Chaudhuri here.
Mar 05, 2019 • News • News Software and Apps • PTC • IFS • Software and Apps • Parts Pricing and Logistics
IFS the global enterprise company have announced a partnership with computer software and services company PTC that they say will reduce asset downtime and improve service part availability.
The partnership will see IFS' three field service platforms - IFS Applications, IFS Field Service Management and IFS Maintenix - incorporate PTC's service-parts optimisation solution Servigistics.
Commenting on the agreement, Aly Pinder, IFS' Program Director of Service Innovation and Connected Products said: " The collaboration between PTC and IFS connects two critical aspects of service – field execution and service parts management. To remain competitive and deliver enhanced service experiences, it is crucial to have the right service part available for a service technician to fix an issue promptly and during the first visit."
Leslie Paulson, Servigistics Business Unit's General Manager was equally positive. “We are excited to partner with IFS to integrate our solutions and pursue new frontiers of innovation in connected service delivery,” she said. “Having the right part in the right place at the right time has never been more important. We’re pleased to be working with IFS to enable companies to differentiate their service and maintenance operations.”
Pricing details have not been yet been revealed, but according to MRO-Network.com, IFS have said this will depend on specific customers' needs.
Feb 22, 2019 • Features • The Field Service Podcast • Mark Glover • Parts Pricing and Logistics
The digitalisation of a spare parts inventory has huge potential but comes with many challenges.
In this episode of the Field Service Podcast, fieldservicenews.com Deputy Editor talks to Florian Kriz, Manager E-Commerce and Product Management at Vanderlande's Global Spare Parts Division, about the potential of spare parts in the service sector and shares some of the challenges involved with the digitalisation of a spare parts portfolio.
Feb 08, 2019 • Features • The Field Service Podcast • Parts Pricing and Logistics
Can 3D printing solve the increasing challenges of service supply chain logistics?
Can 3D printing solve the increasing challenges of service supply chain logistics?
In this episode of the Field Service Podcast, fieldservicenews.com Deputy Editor Mark Glover discusses the potential of 3D printing in terms of service supply chain logistics and spare parts management for field service organisations with Atanu Chaudhury, Associate Professor, Operations and Supply Chain Management at Aalborg University, Copenhagen ahead of his presentation at this year's Spare Parts Business Platform Conference in Stockholm being held next week.
If you haven't had a chance to work out this excellent conference into your schedule why not check out the UK edition where many of the same key themes will be discussed being held in Warwick on the 4th April.
Feb 08, 2019 • News • Artificial intelligence • road safety • Fleet Accidents • Parts Pricing and Logistics
Artificial intelligence can be applied to enable the better detection of road traffic disturbances in real-time, according to research by the Finnish Transport Agency and Tieto.
Artificial intelligence can be applied to enable the better detection of road traffic disturbances in real-time, according to research by the Finnish Transport Agency and Tieto.
The findings were the result of a Proof of Concept experiment conducted by the two organisations in the spring of 2018 that combined LiDAR (Light Detection and Ranging) measurement technology with sensor fusion and artificial intelligence techniques to analyse traffic flows.
Traffic situations deviating from the usual constitute a significant road safety risk. At present, the automatic monitoring of traffic anomalies tends to be based on camera surveillance, and the most sophisticated solutions focus mainly on the security of tunnels. Currently, artificial intelligence and sensor data systems are not widely used for real-time monitoring of traffic disturbances. Data analysis systems using sensor fusion and artificial intelligence can now provide new opportunities for traffic management centers to obtain a richer real-time view of road conditions and disruptions as they occur.
The experiment was carried out at the Mestarintunneli tunnel in Leppävaara, Espoo. Alongside camera surveillance, LiDAR sensors were installed in the tunnel. Compared to traffic camera footage, LiDAR technology has the advantage of being reliable in different lighting conditions, including low light environments. The desired solution was to detect, for example, stalled vehicles and other disturbances such as people or animals on the road.
The project had a lot of data at its disposal, collected from the normal traffic flow. However, the number of abnormal situations during the measurement period was small, which made it more difficult to develop an artificial intelligence solution.
“In order to model traffic flows, we decided to build a tailored machine learning model based on sensor fusion, and one that also recognises traffic anomalies by comparing them with the normal traffic model. This approach shows that even a smaller set of observations can be used to build virtually functional artificial intelligence solutions,” says Ari Rantanen, Chief Data Scientist, Data Driven Businesses at Tieto.
“Automatic recognition of traffic disturbances is a key requirement for a secure road network. Based on current functional requirements, the most cost-effective system has been traffic camera surveillance with a built-in disturbance detection system. However, we are constantly monitoring the market and introducing new technologies to seek new opportunities and cost-effectiveness,” says Senior Officer Kalle Ruottinen from the Finnish Transport Agency.
The project showed that automated analysis of traffic flows can produce new, near real-time information for different stakeholder needs without significant investments in sensors. In addition to analysing traffic flows, sensor fusion intelligence enables a number of other uses, such as forecasting traffic disruptions and assisting traffic management.
Feb 07, 2019 • Features • The Field Service Podcast • Parts Pricing and Logistics
Can 3D printing solve the increasing challenges of service supply chain logistics?
Can 3D printing solve the increasing challenges of service supply chain logistics?
In this episode of the Field Service Podcast, fieldservicenews.com Deputy Editor Mark Glover discusses the potential of 3D printing in terms of service supply chain logistics and spare parts management for field service organisations with Atanu Chaudhury, Associate Professor, Operations and Supply Chain Management at Aalborg University, Copenhagen ahead of his presentation at this year's Spare Parts Business Platform Conference in Stockholm being held next week.
If you haven't had a chance to work out this excellent conference into your schedule why not check out the UK edition where many of the same key themes will be discussed being held in Warwick on the 4th April.
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