The Increasing Criticality of Service Parts Logistics

person placing chip into computer

White Paper

May 2023

Summary

The logistics industry today is far more than just deliveries. It’s more sophisticated and holistic. For equipment companies, Service Parts Logistics (SPL) is becoming a much more important part of the overall supply chain and their business. Service Parts Logistics ensures technicians can efficiently get the right service parts to get critical equipment back up and running fast – and within required Service Level Agreement timeframes.

Original Equipment Manufacturers (OEMs) said they estimate their SPL portion of overall logistics spending will rise in the next two years to 27%, up from 23% today, and up from 21% two years ago, due to sustainability reasons and increased customer demands.

By offering customers the urgent forwarding of replacement parts, then cycling the replaced parts to repair sites or other destinations, SPL providers offer businesses reduced costs, improved customer experience, stronger sustainability and smoother running operations.

In This Paper, You Will Discover:

Key insights from a 250-person SPL decision maker survey
What’s driving growth in the overall SPL market
The growing value of SPL vendors
The ‘Must Haves’ in a SPL partner
Most common SPL challenges
Service needs by industry segment

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