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With spare parts it is all about speed and service levels
Logistics of components and (spare) parts has to deal with service levels, emergencies and preventing downtime, for example, of equipment or vehicles. Responsiveness is important in the spare parts logistics, especially in the automotive industry. Transport costs cannot exceed the budget, but this also depends on contractual agreements.
These logistics systems have to deal with large numbers of SKUs and orders. The diversity of the goods can be very large and typical warehouses combine different types of storage systems and materials handling equipment. Also, the warehouse has to be able to cope with returns, and the inclusion of new items.
Parts logistics also deals with 'next day' deliveries, late cut-off times and value added services such as grouping. Traceability plays an important role and the cost per handled product must be low in order to remain competitive.
