Lely achieves substantial spare parts availability increase

A planning department back in control

Lely’s vision is to have a sustainable, profitable and enjoyable future in farming. Producing world-class robots for the dairy industry Lely contributes to this vision. Their robots need to function 24 hours a day, which requires the right spare parts to be available at all times. A footprint of their products in more than 52 countries globally adds to the complexity of this exercise. Parts should be available in the right quantity, at the right time, but at the same time minimizing stock value is also important.

Available parts create happy clients

A crucial driver for elevating customer satisfaction for Lely is to have a high availability of spare parts and as a result a one-time-fix at the client. But achieving high availabilities in an efficient matter requires insights and smart methodologies. Previously Lely missed relevant insights in their spare parts planning and therefore they decided to collaborate with Lanza to help them with that challenge. By means of the Lanza methodology Lely was able to quickly increase their parts availability and as a result satisfy their clients.

Dynamic parameter update

Lely and Lanza created a dynamic monthly update of the relevant inventory parameters. Every month exception checks are carried out to make sure all anomalies are filtered out. Think of peak demands and unreliable supplier lead times. Once there is confidence in the inventory parameters an export to the ERP system is prepared. With optimal safety stocks and forecasts Lely now avoids stress in the supply chain which reduced firefighting drastically.

More focus, better skills

Lely manages a lot of spare parts. Exception checks in Lanza let Lely focus on the most important items in this vast assortment. This creates a far more efficient planning of their spare parts portfolio. Moreover, the skills of planners have improved significantly, Lanza provided more insights in the distribution of the parts, the planners can follow the parts better, and ultimately forecasts are more accurate which resulted in higher service levels for Lely’s customers.

Robert Kuijpers, Manager Supply Chain Operations at Lely

“Since Lely and Lanza collaborated parts availability has increased substantially."

Robert Kuijpers, Manager Supply Chain Operations at Lely