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Service Parts Strategy Moves into Boardroom

[ July 3, 2026   //   ]

Manufacturers are investing heavily in spare parts inventories, but many still struggle to meet customer service expectations, according to a new analysis arguing that network design – not inventory levels – is becoming the real competitive differentiator.

Drawing on published academic and industry research, the analysis from supply chain solutions provider Unilog argues that many manufacturers continue to measure success through aggregate inventory metrics while overlooking whether mission-critical parts are positioned where customers actually need them. The result, it says, is a paradox of rising inventory and rising customer escalations.

The paper cites research showing manufacturers typically tie up about 10 percent of annual sales in spare parts while customer satisfaction with after-sales support continues to lag expectations. It also notes that many service calls are delayed because the required part is unavailable where it is needed.

Rather than simply reducing or increasing inventory, the report argues companies should redesign service parts networks around customer response requirements, part criticality and demand patterns. It also recommends that executive teams shift their focus from average performance metrics to the relatively small number of service failures that drive customer dissatisfaction, contract renewals and profitability.

The issue is becoming increasingly strategic as aftermarket services generate a growing share of industrial profits. Citing research from Boston Consulting Group, the paper notes that aftermarket activities account for one-third or more of revenue for many industry leaders.

The report also calls for closer collaboration among operations, commercial, finance and logistics teams, arguing that spare parts strategy is no longer simply an inventory management issue. As manufacturers become increasingly dependent on aftermarket revenue and service contracts, spare parts availability is emerging as a board-level consideration affecting customer retention, profitability and long-term competitive advantage.

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