Sparing Strategy

The Problem

A leading service provider was looking to optimize its sparing strategy. The enhanced process would need to improve visibility of available spares and maintain service SLAs that were in place.

DTS Approach

  • Developed framework to classify spares, failure rates, and associated cost
  • Developed sparing plan that addressed two types of sparing requirements
    • Material seed stock required to operationalize normal failures
    • Emergency materials needed to address a catastrophic event
  • Led model development that optimized quantity, location, and sparing cost
    • Model based on confidence factor of having material when needed
    • Model used MTBF, inventory replenishment times, and SLA data
    • Quantity and stocking location defined based on material criticality
  • Defined worst-case configuration to support catastrophic failure events
    • Minimizing the cost of sparing all possible configurations
  • Phased implementation used to reduce exposure and minimize cost
  • Trained Supply Chain to use sparing model to support quarterly updates

Client Benefits

  • The client received a usable cost-effective sparing strategy in less than 3 months that also provided visibility to available spare materials throughout the organization.
  • The client used the sparing model quarterly to maintain required stocking levels as deployments grew.
  • $1M in initial savings was realized by staging sparing locations for plug-in module spares needed to support emergencies to back fill material spares.