syncron overview brochure

Improve Service. Reduce Stock. Grow Profit.

Solutions

SYN-024 Overview Brochure.qxp_Layout 1 10/28/16 2:41 PM

Optimize YourParts Inventory PlanningManaging inventory can be a daunting task for an enterprise with tens of thousands of parts in hundreds oflocations. The challenge is even greater when the locations are situated in different tiers or echelons of theenterprise’s distribution network.

Syncron Inventory Management is built from the point of view of people who are planning in these multi-echelonenvironments. As a result, our solution helps you:

Complementing existing ERP solutions, Inventory Management’s implementation is fast and affordable. By leveraging ourcloud-based solution, you eliminate the need to host, maintain, and monitor the technical environment.

Our software easily integrates and communicates with multiple ERP systems and IT systems. As a result, our customersachieve substantial and immediate improvements to profitability and competitive position in as little as three months. For more than a decade, Syncron has provided best-in-class inventory management software.


Produce an accurate forecast at all points in the supply chain

Plan across the entire supply chain to optimize and right-size inventory

Establish replenishment plans, inventory carrying costs, and target service levels

Lower administrative costs by performing day-to-day tasks efficiently

Address planning and optimization of repairable parts inventory

Analyze and simulate the impact of changes in demand, service or costs.

Syncron Inventory ManagementAn intuitive software to optimize your inventory.

Release Cash Increase Sales Improve Profits Reduce Losses

by reduced stock level(25% or more)

through better availability(5-10% improvements)

by reducing freight costs(5-10% improvements)

from dead stock write-off(5-10% improvements)


Syncron places a special emphasis on inventory management at companies that sell through retail networks.Our Dealer Inventory Management solution helps you build a better relationship with your dealers, so you can:

In addition, our return management functionality automates returns across your network – giving your dealers confidence inyour stock management.

Gain control and improve visibility withDealer Inventory Management

JCB constructs world-class partsplanning with SaaS solution

Control inventory and gain visibility of dealer sales

Improve forecasting across the entire network by incorporating feedback from your dealers

Increase service levels at your dealer locations

Incorporate information about new and critical parts at the dealer

Decrease write-offs from obsolete stock

Drive revenue with better forecasting

With its strategy to deliver world-class customer support, JCB has invested in a comprehensive global network ofdealers and regional service part depots that enables it to deliver parts more quickly to customers. To maximizethe performance of this network, JCB recognized it needed a global streamlined parts inventory managementprocess to ensure the highest parts availability with minimal inventory levels.

JCB selected Syncron’s Inventory Management solution to reduce theimplementation complexity and receive the maximum value from thesolution in the shortest possible time. Today, JCB achieves a 7.4 percent-point higher customer service level for spare parts, ensuring customersget the right part when they need it, wherever in the world they might be.With more than 2,000 dealer locations worldwide providing parts andservice to JCB customers, the improved availability has significantlycontributed to greater customer satisfaction and loyalty.

With each regional warehouse and depot location linked into one common inventory system,JCB today operates a streamlined and more efficient operation for parts inventory planning,replenishment and optimization through Syncron Inventory Management.“Chris Buckler, General Manager World Parts Operations, JCB


Increase Profits WithPrice ManagementService parts pricing is the new profit lever.

Today, most companies understand that a single cost-plus approach is not sufficient for the spare parts business. A pricingstrategy combining cost-plus, reference, kit, value-based and market-based pricing leads to margin increases. A combinedstrategy also helps make prices more transparent to the customer.

The introduction of an advanced pricing tool helps organizations improve their pricing processes, optimize prices, andultimately drive service parts revenues up by 5 percent, while driving gross profits by 7 percent! With Syncron Global PriceManagement, you can:


Hitachi Optimizes Market Pricingto Boost Margins by Billions

Hitachi Construction Machinery (HCM) prices more than 1,000,000 partswith 24,000 new parts introduced annually. HCM was not fully satisfiedwith their pricing system as their process required increased support forvalue based optimization, price management and distribution includingbuilt-in approval handling and advanced analysis capabilities with theoption to simulate multiple price revision scenarios.

HCM selected Syncron Global Price Management to optimize its pricingthrough science-based segmentation, pricing guidance, and advancedanalytics. The solution was implemented in a timely manner and onbudget, with no significant customization or add-on development required.

The solution provided HCM with one central system, consolidating allpricing processes and providing global price visibility across the complexsupply chain. With Syncron Global Price Management, HCM hasgained a better understanding of the details behind pricing foreach part number, allowing them to develop strategies for market-leading pricing.

The yearly price revision workload has drasticallyreduced by implementing Global Price Management.We are able to get faster return financially from thenew price.

“Kazuhiro Ishido, Marketing Group Manager, Hitachi

Eliminate manual effort, simplify and automate price execution

Identify underperforming products so you can take action

Analyze and respond faster to changing market conditions

Implement sophisticated, differentiated pricing policies, like value-based pricing


When growing margins is the goal, value-based pricing is often your most powerful tool.

Value-based pricing sets price on the perceived benefit to the customer rather than on the cost of the product or historicalprice. Where it is successfully used, value-based pricing can improve profits without impacting sales volume. Syncron helpsyou determine when to use value-based pricing and what the customer is willing to pay.

In addition our software allows you to identify items, like proprietary or patented items, that can be priced more aggressively.Price Management helps the analyst evaluate multiple price strategies – cost-plus, competitor prices, and value-based.

Syncron supports modeling, simulation, and strategic analysis so you can evaluate your business performance. PriceManagement’s advanced graphical interface allows you to:

Service Parts Pricing:The New Profit Lever

Spot and correct inconsistent pricing across product lines, customers, and sales channels

Analyze price levels to identify underperforming product segments, customers, or markets

Simulate the business impact of changes based on price elasticity

Manage and model volume and trade discounts

Every second company is engaged in a price war.Pricing offers many opportunities for optimization.There is very significant profit potential in the Aftermarket.“Dr. Peter Colman, Senior Director, Simon-Kucher & Partners

Leading manufacturers from around the globe are now optimizing their service partspricing to deliver dramatic improvements to their top and bottom lines.

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Discounts and Charges

• Customer discounts• Freight, packing & handling• Manual adjustments• Special deals

Price Lists

• Geography• Market• Competitive• Customer specific

Off-invoice Costs

• Rebates• Bonus• Service

Item Costs

• Local handling• Distribution• Purchase

PRICING LOGIC

Figure:An illustrative price waterfallportrays the progression from listprice to pocket margin.



World-Class OrganizationsChoose SyncronAt Syncron, customer success is alwayspriority number one.

We act as one global team and always stay close to ourcustomers, wherever they are. At Syncron, we take personalresponsibility to deliver superior results to our customers.

Syncron’s solution provided support for adoption by ourdealers. The software is built for the dealer network withfunctionality that helps dealers focus on inventory withsignificant demand changes.

Phil Conley, General ManagerService Parts Process TransformationCaterpillar

Rapid, successful deployment of supply chain software requires not only sophisticated technology but also a deepunderstanding of the process and how it can add value to the business. Using our implementation model, a strongand proven methodology, together with consultants with deep industry knowledge, Syncron provides fast andsuccessful implementations for high and rapid ROI.

Our supply chain management consultants have undertaken a number of successful initiatives, including abcinventory control systems, that have delivered real and sustainable results for our customers, such as:

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80-95%Service LevelIncrease

30-80%Lead TimeReduction

50%InventoryReduction

30-50%ProductivityImprovement

5-10%Total CostReduction


About Syncron

Syncron is the only aftermarket service provider that exclusively focuses onservice parts management and pricing for the world’s leading manufacturers.The company's award-winning SaaS solutions enable companies around theworld to transform their aftermarket service operations by dramatically increasingprofitability, cash flow and customer loyalty. Syncron’s global customer baseincludes a variety of market-leading companies across diverse industries. Thecompany is privately held, with its headquarters in Stockholm and additionaloffices throughout Europe, the U.S. and Asia.

For more information, visit Syncron.com

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We, together with Syncron, developed highly efficient forecasting, replenishmentand distribution processes to gain the best possible availability of spare parts andrepairable spare parts. We focus on keeping the maintenance of trains (old andnew) as efficient and productive as possible, so that constant rail traffic across thewhole rail network is guaranteed.

Dr. Felix Hafner, MRP Parts PurchasingDB AG

The yearly price revision workload hasdrastically reduced by implementingGlobal Price Management. We areable to get faster return financiallyfrom the new price.

Kazuhiro Ishido, Marketing Group ManagerHitachi

It is a cost-effective solution for supply chain Integration,collaboration and planning. Entire global operations can beevaluated, planned and managed from a single workstation.

Mohammed Sadeq Abdallah,National Parts Manager - GCPDAl Masaood Automobiles

We know that our competitors have paid up totwenty-five times more when trying to achievesimilar results with their ERP systems.

Jan Paulsson, Global MMI ManagerVolvo Construction Equipment

By having the ability to plan across our entiresupply chain to optimize and right-size inventory,we are able to better serve our customers. Werespond faster to customer demands, lead timeshave been minimized and repeat business is onthe rise.

Wim Vercauteren, Vice PresidentBusiness Unit Spare PartsManitou Group

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Syncron.com

Global Inventory Management . Global Price Management . Global Order Management . Master Data Management

© 2016 Syncron


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