Accelerating Service Kit Growth for a Global Heavy Equipment Manufacturer
Situation
A major heavy equipment manufacturer aimed to expand its service and parts sales by scaling its kitting operations.
To succeed, they needed a partner capable of delivering exceptional quality, consistency, and speed-to-market while managing complex global supply chain demands.
Their requirements included tighter control of inventory, improved forecasting, streamlined procurement, and the ability to support multi-level sub-assemblies across hundreds of suppliers.
With service kits ranging from 20 to 400 SKUs—and more than 1,200 individual components—their existing processes could not keep pace with market expectations.
Solution
The manufacturer selected Group O as their end-to-end kitting and inventory management partner. Group O implemented a scalable, data-driven solution designed to meet the client’s global operational goals.
Key components of the solution included:
- Ownership and procurement of $150 million in annual inventory, ensuring uninterrupted supply and optimized working capital.
- Management of nearly 400 global suppliers, supported by defined processes for procurement, forecast planning, order management, and distribution.
- Implementation of integrated technologies to support complex component demand, including multi-level sub-kits with high variability.
- Standardized kitting processes capable of handling kits with 20–400 SKUs and 1,200+ individual parts.
- Continuous collaboration with the client’s planning, engineering, and supply chain teams to enhance visibility, streamline operations, and accelerate new product introductions.
Results
Group O’s approach created measurable improvements across quality, speed, and supply chain performance:
- 32% increase in service kit volume, driving significant growth in aftermarket parts revenue and improving end-user satisfaction.
- 99% sustained on-time shipping performance, exceeding client expectations and strengthening reliability across global markets.
- New product introduction timeline reduced from 13 months to just 3 months, accelerating product availability and competitive advantage.
- Annual recognition through client quality award certifications, validating Group O’s consistency, precision, and commitment to performance excellence.
