Service parts management is the main component of a complete strategic service management process that companies use to ensure that right spare part and resources are at the right place (where the broken part is) at the right time. Spare parts, are extra parts that are available and in proximity to a functional item, such as an automobile, boat, engine, for which they might be used for repair.

Economic considerations

Spare parts are sometimes considered uneconomical since: But without the spare part on hand, a company's customer satisfaction levels could drop if a customer has to wait too long for their item to be fixed. Therefore, companies need to plan and align their service parts inventory and workforce resources to achieve optimal customer satisfaction levels with minimal costs.

User considerations

The user of the item, which might require the parts, may overlook the economic considerations because:

Cost-effect compromise

In many cases where the item is not stationary, a compromise is reached between cost and statistical probability. Some examples:

Measures of effectiveness

The effectiveness of spares inventory can be measured by metrics such as fill rate and availability of the end item.