MCA Solutions is the leading vendor for service parts inventory optimization planning, according to ARC Advisory Group's new "Advanced Inventory Optimization" report.
ARC defines Advanced Inventory Optimization (AIO) as a type of solution that delivers targeted customer service levels with the minimum amount of network inventory. According to the study, "there are two types of AIO solutions; Regular Inventory Optimization and Parts Inventory Optimization. Regular Inventory Optimization solutions calculate where raw material, work-in-process, and finished goods safety stock should be kept in a multi-echelon supply chain. Parts Inventory Optimization is focused on calculating stocking levels for service parts in a multi-echelon supply chain." The ARC study found that MCA Solutions, and its Service Planning and Optimization (SPOTM) suite of products, was the market leader in Parts Inventory Optimization, with 24 percent market share.
"Service parts inventory represents a unique set of challenges," said Steve Banker, service director for Supply Chain Management at ARC and the author of the report. "We did talk to some of MCA's customers. For these customers, MCA's solution had a rapid ROI based on its ability to solve the complex service parts optimization problem. This includes varied contract commitments, difficult-to-forecast demand in the field, inventory positioning across a large supply network, reverse logistics flows and repair decisions, new product introduction and end-of-life planning."
"We are pleased to be recognized for our success in this market," said Bob Salvucci, president and CEO of MCA Solutions. "Our service parts inventory planning solution provides intelligence that reduces inventory while increasing service levels, and minimizes the manual intervention required in solutions that do not provide this level of optimization and process automation, allowing the planner to focus on what's most important. We see our product as very complementary to the business process platforms of ERP vendors, who are focused on execution functionality, and not on optimization."
Leading service organizations in aerospace, defense and high-tech industries, including Boeing, Cisco and KLA-Tencor, are using MCA's software to reduce inventory, increase fill rates and dramatically improve customer satisfaction. MCA has received Integration Certification and Powered by SAP NetWeaver certification, allowing customers to accelerate the return on investment in their SAP enterprise systems.