Out-of-Production Service Parts

As annual volumes decrease for out-of-production service parts, it costs OEM manufacturers more and more to maintain the equipment, tooling, and inventory required to provide these service parts to their customers. TruCut offers a broad array of standard and customized programs to assist OEM's in a smooth transition from high-volume production requirements to low-volume out-of-production service requirements. With service part volumes ranging from as low as one to thousands, TruCut can manage your complete out-of-production service part program.

Service Parts Management Programs:

 

-Direct Ship to OEM's Customer

-Ship to OEM's Distribution Center

-Managed OEM Inventory at TruCut

-Machinery Transition Services

-Tooling and Asset Storage

 

 

Typical improvements to the OEM include:

 

-On-time delivery performance greater than 98%

-Lead-time reduced to 48 hours or less

-Accurate product costs allowing a consistent and maximized profit.

-Inventory levels reduced to zero

-Inventory turns optimized as a result of no inventory

-100% of floor space made available to new production 

-Indirect labor savings from reductions in purchasing, material receiving, material handling, scheduling, machine set-up, machine maintenance, shipping, and supervision.

-Elimination of all intra company distribution costs to move service parts to a company warehouse.

-Warehouse cost eliminated as a result of no service parts in inventory.

-Immediate positive cash flow improvement as a result of elimination of inventory and payment of TruCut’s invoice after goods are sold to OEM’s customer.