Less Inventory, More Service

Spare parts supply is one of the biggest challenges in the aftermarket. Customers expect fast delivery, while companies are under pressure to reduce inventory levels and capital tied up in inventory. The Wacker Neuson Group demonstrates that these two goals do not have to be mutually exclusive. With a consistently data-driven supply chain strategy and the use of the GIB Suite, the international construction equipment manufacturer is able to increase delivery capacity while simultaneously optimizing inventory levels in a targeted manner.

For Wacker Neuson, the aftermarket holds special strategic importance. The company, with approximately 5,800 employees and a global sales and service network, views spare parts, service, and customer support as a key driver of long-term growth.

160,000 active replacement parts

This importance stems solely from the nature of the business: More than 160,000 active replacement parts must be kept in stock worldwide. And Wacker Neuson’s responsibility does not end after 10 years. Many machines are still in use after 20, 30, or even 40 years and continue to require original spare parts. The demands on planning, inventory, and logistics are correspondingly high. At the same time, the company’s service commitment has increased significantly in recent years. Today, customers expect availability on par with the standards of major e-commerce providers.

For Wacker Neuson, this means specifically: If an order is received by 6:00 p.m., the required replacement part should arrive at the customer’s location the very next day. To keep this promise, the company aims for a service level of 95.5 percent. At the same time, however, financial metrics such as net working capital must also be maintained. Increasing inventory is therefore not a sustainable solution. Instead, the company sought a way to optimize both availability and capital utilization simultaneously. A major challenge lay in consolidating various business units. With the centralization of the aftermarket business, inventory levels, processes, and master data from different organizational units had to be merged. Initially, there was only limited transparency regarding the actual inventory structures.

„These three modules are incredibly helpful in enabling us to use the same
The team saw strong growth in order volume and
”to manage inventory efficiently."

Thomas Löffler,
Supply Chain Management Team Leader within
of the global aftermarket,
Wacker Neuson

Many planning decisions were based on empirical knowledge, safety stock levels, and simple forecasting methods. This resulted in high buffer stocks, a lack of transparency regarding excess inventory, and a significant amount of manual work in inventory planning. The introduction of the GIB Suite marked a turning point. Initially, the focus was on inventory management. With the GIB Controlling module, Wacker Neuson created the necessary transparency regarding inventory levels, inventory turnover rates, and depreciation risks. Safety stock levels, lot sizes, and other planning parameters are now calculated automatically based on defined rules. This provided, for the first time, a solid foundation for actively managing inventory and identifying opportunities for optimization.

Focus on Forecast Quality

The next step focused on forecast quality. Whereas in the past a moving average of historical consumption data was primarily used, various forecasting models are now available. GIB Forecast automatically evaluates these models and selects the most appropriate method in each case. This not only allows for better consideration of seasonal fluctuations but also enables the incorporation of trends and additional sales data. For Wacker Neuson, this was a decisive step away from a purely retrospective approach toward forward-looking demand planning.

These technical improvements have also had an impact on the organization. Traditional dispatchers are increasingly evolving into supply chain managers. Instead of manually making thousands of routine decisions every day, employees now focus on exceptions, bottlenecks, supplier management, and strategic issues. The systems handle the majority of standard operational tasks while also providing the transparency needed to make informed decisions.

Manage Inventory Efficiently

According to Thomas Löffler, team leader of Supply Chain Management within the global Wacker Neuson aftermarket organization, the solution’s strength lies particularly in the interaction between the individual modules: „These three modules are incredibly helpful in enabling us to efficiently manage strong growth in order volume and inventory levels with the same team.“ The results show that this approach is paying off.

„We've been playing with the same team for almost
”60 percent more efficient with these tools."

Jan Mollerus,
Director of Aftermarket Operations,
Wacker Neuson

Jan Mollerus, Director of Aftermarket Operations, sums up just how much efficiency has improved: „With the same team, we’re now nearly 60 percent more efficient with these tools. We’re managing 60 percent more orders with the same number of people we had in 2019.“ At the same time, the company has succeeded in aligning inventory levels much more closely with actual sales trends. The supply chain organization can now focus more strongly on supplier performance, risk management, and the further development of the global spare parts network.

Data-Driven Supply Chain

The solution is no longer used exclusively in Europe. Locations in the U.S., China, and other regions have also been integrated to harmonize transparency and inventory management worldwide. Looking ahead, Wacker Neuson would like to leverage its existing data sources even more effectively for planning purposes. Customer purchasing behavior, maintenance schedules, service bulletins, telemetry data, and pricing information will be systematically incorporated into the forecasting models in the future. The goal is a supply chain that identifies demand even earlier and taps into further automation potential—including vendor-managed inventory concepts and largely automated ordering processes.

For Wacker Neuson, this is an important step toward a supply chain that ensures high availability, cost-effective inventory levels, and excellent customer service in equal measure.

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