Smart Software, which provides demand forecasting, planning, and inventory optimization solutions, says that the Industrial Applications Division of Siemens Power Generation (PG) has purchased SmartForecasts Enterprise to support its global service business. Siemens is to integrate SmartForecasts with the division's SAP system and use the new planning solution to forecast parts demand and inventory stocking levels at the service business's six product centers.
The Industrial Applications Division of Siemens PG sells gas and steam turbines, as well as compressors. It services equipment in the field that can be 50 years old or more. The machines are used by customers in the oil and gas industries and in the paper and sugar industries, among others. The group's customer base includes a variety of sites running many different types of equipment that potentially require millions of parts to keep them in service, according to Siemens. Some 30,000 of those parts are "active," and a majority of those have intermittent or irregular demand.
Historically, each of Siemens PG's stocking locations has been responsible for forecasting its own inventory, typically by informal or judgmental means. "Our aim is to harmonize our approach to inventory planning across locations with a best-in-class demand planning and inventory optimization solution," says Ken Winn, director of global resource management for the Industrial Applications Division's service business. "SmartForecasts will provide us with a cost-effective way to maximize our service levels and help make sure we have the right parts in the right place when they're needed."
Smart Software is headquartered in Belmont, Mass. Visit www.smartcorp.com.