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• W1918951689 abstract "This master thesis is a part of an inventory control researchcollaboration between NGIL (Next Generation InnovativeLogistics) and Volvo Parts AB. Volvo Parts is a business unit withinthe Volvo Group that provides support and services for theaftermarket. Their objective is to maximise the uptime of VolvoGroup products for the end users by providing support andensuring availability of spare parts. The purpose of thecollaboration is to investigate the potential of coordinated controlin Volvo Parts’ distribution structure. Prior studies within theproject have indicated potential for significant reductions ofinventory related costs while fulfilling determined target servicelevels to customers. This thesis is a continuation of the project andaims to evaluate the potential benefits further.Excellent customer service involves more than providing sufficientavailability of articles. Customer expectations and requirementsare today higher than ever before, much due to the ease of accessof products and services from companies all over the world.Enhancing customer service has become a way for companies todifferentiate themselves and to gain competitive advantages. Thisthesis aims to identify what areas Volvo Parts should focus on inorder to improve their service to customers.Objective The objective of this master thesis is to evaluate the potential ofcoordinated inventory control at Volvo Parts and to investigatepossible improvements of the company’s customer service.Methodology To handle the diverse objectives of this thesis a mixed methodapproach is employed. A qualitative study of customer service isperformed through a literature review and a series of interviewsand potential benefits of coordinated inventory control areevaluated through quantitative simulations. A link between thequalitative and quantitative research exists since the interviewstudy also aims to provide insights that strengthen the evaluationof the simulation study.Conclusions The most important areas for Volvo Parts to focus on in order toimprove their customer service are information, reliability andaccess. These dimensions all hold considerable potential toenhance the customers’ perceptions of the service. Whendiscussing and preparing actions for improvement, Volvo Partsshould also consider efforts concerning empathy. This reportpresents hands‐on suggestions for improvements in thementioned areas.Today Volvo Parts uses several different measurements, some ofwhich are related to customer service. To help the organisation toachieve a more thorough indication of their performance in thearea and to strengthen the connection to the customers’perceptions this report also presents some complementary andalternative customer service oriented metrics, the most importantbeing:Perfect order fulfilmentModification of the current metric Dealer Service IndexVOR leadtimeThe simulation study indicates that the NGIL inventory controlmodel holds significant cost reduction potential. The results showa decrease in total cost by more than 25% compared to VolvoParts’ current solution. Unfortunately the NGIL model renderedsome solutions that appear to be unrealistic stockholding policiesto implement in practice. By modifying the assumptions behindthe model we received a more logical solution and an improvedservice level at the expense of a slightly smaller cost reduction.This favourable result indicates that relatively minor adjustmentsof the model can increase its suitability substantially.Our recommendation is an implementation of the model in a pilotstudy preceded by a revision of the calculations of the costparameters used as input to the model, since we believe thesecurrently limit the solutions. A more detailed adjustment of theassumptions would probably also be useful. In conclusion, webelieve that the NGIL model can be of great use for Volvo Parts ifutilised correctly." @default.
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• W1918951689 date "2011-01-01" @default.
• W1918951689 modified "2023-09-22" @default.
• W1918951689 title "Coordinated inventory control and customer service performance at Volvo Parts" @default.
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