DMG MORI Is Improving Efficiency and Forecast Skills in Spare Parts Management

The leading machine tool manufacturer offers optimized customer service and enhanced supply chain resilience, continually increasing customer satisfaction.

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Production line for heavy equipment

Challenge

Together, DMG MORI AKTIENGESELLSCHAFT, global leader in the manufacture of cutting machine tools, and its subsidiary, DMG MORI Spare Parts GmbH, are committed to exceptional customer service.

With several parts centers around the world, and over 300,000 different spare, conversion, add-on, and retrofit parts on offer, DMG MORI is committed to meeting customer requests promptly while also working with the utmost efficiency.

In order to offer maximum part availability, DMG MORI went hunting for a flexible solution that could scale up to match company growth and be adjusted to work with new service innovations.

Solution

Syncron Inventory allowed DMG MORI to automate time-consuming processes that had, in some cases, previously been manual. This significantly reduced costs on price estimates, orders, and other fundamental processes.

“We can even manually check automatically created orders if we need to. Other automated solutions did not offer that feature. We were particularly interested in the fact that the Syncron solution can be scaled up to handle any number of parts, and is continually updated for additional support,” said Jing Wang, Division Manager Planning at DMG MORI Spare Parts GmbH.

Syncron Inventory sends proactive notifications to customers like DMG MORI, providing information on parts that need to be replaced in the near future, or suggesting that inventory be reduced for slow-moving products. Syncron’s solution takes intelligent inventory management to the next level by allowing orders to be carried out automatically or adjusted manually to suit new market developments.
Plus, the software helps companies to react quickly to fluctuating procurement lead times while maximizing profits. By simulating a variety of scenarios, the software provides information on the effect that reducing specific stock will have on availability and therefore on profits.

Business impact

By working together with Syncron, DMG MORI was able to improve after-sales service processes across the board:

  • Reduced costs for price estimates, orders, and processes
  • Increased precision and efficiency for spare parts management
  • Optimized individual parts categories
  • Complex manual processes were replaced by intelligent automatic price estimates and orders
  • Additional data-based forecast skill highlights changes to demand flows

“Quality, price, and storage location are three decisive criteria for offering the best possible part availability to customers,” according to Jing Wang. “This requires intelligent warehousing and structured advanced planning, and Syncron’s software provides both.”

Looking ahead

Agile inventory management achieved by separating demand flows in Syncron Inventory

Syncron now has a new release of their inventory management software that offers the option of separating demand flows within the parts business. DMG MORI plans to use this feature to differentiate actual customer needs from the needs of other recipients, such as their own corporation and production locations.

“We want to make more use of Syncron Inventory’s demand forecasting feature in the future, so that we can react to current trends faster and more effectively,” said Jing Wang.

In the new release, the forecasting skill for parts that are subject to strong demand fluctuation has been expanded. These features and more allow Syncron Inventory to support decision making within the company and have helped to create intelligent inventory management at DMG MORI that provides added value to both users and customers, ensuring that processes are always profitable.