The road towards achieving an improved aftermarket spare parts management : A case study at company X

Abstract: Purpose: The purpose of this study was to analyze possible strategies that can be used to improve the efficiency of the spare parts safety stock management in a multinational company which operates in the electronic industry. Research question: “Which safety stock dimensioning strategies are most suitable in an after-sales business environment, characterized by high level customer service and unpredictable demand?” Method: The theoretical framework illuminated the study’s phenomenon which was mainly based on peer-reviewed scientific articles but also academic books. Furthermore, the empirical data collection in this study was conducted through a mixed research approach, where the qualitative data was collected through three semi-structured interviews and several unstructured interviews, while the quantitative data consisted of calculations using numerical variables provided by the case company. Conclusion: The study concluded that the so called estimated safety stock method as well as the probabilistic demand based on history method are the most suitable safety stock dimensioning strategies to utilize in business environments where firms that offer products with unpredictable demand are facing challenges related to finding a balance between providing a high service level and keeping their costs as low as possible.