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Finished goods logistics versus service parts logistics FINISHED GOODS ? Just in Time ? Small number of fixed stocking locations ? One way traffic: Manufacturing Distribution Centre (Final) Customer SERVICE PARTS ? Just in Case ? (Very) large number of multiechelon stocking locations ? Two way traffic: Manufacturing Distribution Centre (Final) Customer 10 The Service Parts Supply Chain Supply Characteristic: Multiechelon model Sup p lier s ELC RDCPr od u c tionSt r a tegic p a r tsc en tr eSer v ic eev en tService levelH i g hser vic e l evel :2 4 hr s“ Lower ”ser vic e l evelService levelD ire ct sh ipm entReple nis hmen t D ire ct de liv er y (2 4 48 hrs)Reple nis hmen t Reple nis h 2 4 hrsInventory costs11 D oc u m e n tC ou r i e rP ar ce lC ou r i e rSophisticationTim e3PL4PLLo gis t i csS e r v i ce sGl ob alLo gis t i csS ol u t i on sS u pp l yC h ai nIn t e gr at or70s 80s 90s 00sSophisticationDHL Global Customer Logistics Our Logistics Revolution 12 Design amp。 Develop amp。 Plan Product Make Buy Manufacture Deploy amp。 Deliver Recognize Demand Forecast Demand Source amp。 Procure Products Forecast Demand Store amp。 Deploy Products Service Products Return amp。 Dispose Products Install amp。 Maintain Customer Install Base Focus DHL wants to be recognized as the global quality leader in the management of integrated solutions for the (missioncritical) se