Parts and Service improves on-time delivery, availability and reliability for distribution partners

  • PAS delivery article
  • As a Danfoss distribution partner, your customers rely on you to provide the components they need, when they need them. That's why the Danfoss Parts & Service team (PAS) has been working hard over the last year to improve customer experience with availability and reliability. With several global delivering plants, including both Danfoss manufacturing locations and distribution centers, PAS set two targets: a 95% on-time delivery (OTD) to confirm date and a 90% OTD to request date.

    Shipment within 24 hours

    Primarily focused on the S90, S45 and S51 product lines, the PAS team has invested in “Off-the shelf Stock” – a supply of products for distributors to keep on hand as a way to ensure they can meet customer orders with short request dates. “In the Distributor Remanufacturing Program (DRP), we promise shipment in 24 hours,” said Abhijit Dayal, Global Supply Chain Manager, Parts & Service. “With high product availability from Danfoss, it creates an opportunity for our Distribution Partners to reduce Lead Time to their customers and convert their pipeline into strong sales in the current competitive market. The higher Availability also helps reduce overhead for our Distributors.”

    Supply Chain improvements

    In addition to investing in the Safety Stock, the PAS team also spent time on many other strategic and operational efforts to further improve the Danfoss Supply Chain. Assessing their own roadmap, PAS determined they need to move towards a more “Market Driven” model of Supply Chain.

    From Q2, 2015 to Q1, 2016, the request On-Time Delivery has increased globally from 78% to 92%. Likewise, the confirmed OTD increased from 85% to 98% during the same time frame. There has been a collaborative hard work from Planning, Operations and Customer Service.  

    Customers are our #1 priority

    “Our customers’ needs are our highest priority,” Abhijit said. “We aim to continuously enhance our Supply Chain to be more market driven. In a fluctuating market, as is the off-highway business, a strong Supply Chain with high flexibility is more and more a key to grow business and be a stronger partner to our customers.”

    Distribution partners can expect to see continued improvement in the PAS supply chain worldwide. For more information, please contact your local Danfoss representative.  


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